You seem confused. Clinton did no such thing. The Social Security Trust Fund has ALWAYS been funded by borrowing. That was Reagan's deal. We could have purchased more Treasury Bills with that surplus but Bush thought it was a better idea to give it back as a tax rebate that went mostly to the wealthy.1. What is welfare for the wealthy?
2. OASI is invested in government bonds. Safe but not making much.
3. Its not a ponzi scheme unless you get a demographic like the "baby boomers" clogging the system. This is why we need to "fix" the SS system, too few paying in to cover the need. So when Clinton spent the SS surplus and put in an IOU, that IOU is now due.The Social Security Trust Fund receives payroll taxes, pays out benefits, and invests any surplus in special government-backed securities.www.investopedia.com
In the 80s it became obvious that SS was going to run out of money. Problem is, there is no legal method for government to save money. They don't have the legal ability to increase the tax and put that mponey anywhere.
It can't be placed in a savings account. They can't invest it in the market. So what can they do? They can BORROW that money. They do this by buying Treasury Bills they they repay out of the General Fund. That IS the Trust Fund and those Treasury Bills will be exhausted. That is the deal Reagan made. He raised taxes (payroll SS taxes) on the middle class and poor and didn't get slammed for it because he was "AVING Social Security"
So what do we do when the T Bills run out and the Trust Fund is gone?
Yup. Raise the cap. Whether or not we also need to raise the payroll tax remains to be seen but it's a possibility
And doing away with SS in favor of investing retirement in the stock market? Really bad idea.
So when anyone talks about "worthless IOUs...they are either lying or clueless