The Federal Government has borrowed over two (2) trillion dollars from the Social Security Trust Fund. Which in itself proves that the Social Security Administration is doing just fine, it generates a surplus every year. SS can continue to do fine without the money our government is paying back.
To get a balanced budget all we have to do is forgive this debt. Remove this debt from the Federal obligation to pay and we free up $billions to finally balance the Federal budget. I am sure the American public would agree, how about you?
No, it isn’t going broke, because it’s funded out of the general tax fund, which won’t go broke as long as the economy exists, and our economy isn’t going away.
Saying our government is going broke due to the sovereign debt is idiotic. It isn’t debatable, it isn’t political, it is idiotic. Sovereign debt is an investment. It always has been. That’s why most of it is held by American citizens: It’s a safe way to store your money in an interest-bearing instrument for the long term without worrying about the stock market or the fortunes of a specific private company.
General debt forgiveness would therefore be utterly catastrophic. Life savings would be wiped away. Whole families would be impoverished immediately. The poor and the middle class would be hurt worst, because they’re the ones who have the least-diversified most-conservative portfolios, and therefore have the most invested in government bonds. Wiping the debt clean would severely wound the economy.
The fact you think the government is going broke means the Republican Party has succeeded in lying to you in an effort to get you to go along with taxation plans which reduce the tax burden on the richest Americans at the expense of everyone else. It’s that simple.
OK, I’m wrong about that aspect, but my general point still stands: Something is only broke when it’s forced to stop existing and, therefore, stop doing whatever it is it does. Anything else is a debt restructuring or something. Social Security will not go broke under that definition of the term as long as the Federal government can still raise tax revenue and use it to fund projects, and that won’t stop happening as long as there is an economy to tax.
Insisting on a different definition of “broke” in this context would be a spectacular example of missing the point.
