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To: unclewest who wrote (112017)5/1/2005 12:02:56 PM
From: TimF  Read Replies (1) | Respond to of 793939
 
SS would still be solvent if the extra cash collected all these years was placed in a real trust fund and not squandered as it was.

That would depend on the rate of return from the trust fund.

When you consider SS in isolation, the trust fund is real. The SS fund has government bonds.

But there are two problems with looking at things this way. The smaller one is that this trust fund will eventually run out. The more fundamental one is that the trust fund is the government loaning money to itself so it isn't a real asset.

If it was a real asset than things would be better but that asset still might run out if it didn't have a high enough rate of return.

Tim