OohPooPahDoo
Gold Member
The Social Security fearmongers constantly bemoan the fact that the investment of excess FICA revenue in obligations of the United States Treasury means the burden of making up the projected shortfalls in FICA will fall on the taxpayer, and hence, the U.S. economy. That is of course - true.
I have to ask - what other domestic investment vehicle could have prevented the burden from falling on the U.S. economy?
If the Trust Funds had been invested in U.S.corporate debt, then it would be U.S. corporations that have to make up the shortfall - thus the burden still falls on the U.S. economy.
If the Trust Funds had been invested in U.S. stocks, the shortfall would be made up for with dividends from U.S.companies and with sale of stock positions to mostly U.S. citizens - thus the burden again, falls on the U.S. economy to make up the shortfall.
If the Trust Funds had been invested in insurance contracts with U.S. insurers -still the burden falls on the U.S. economy.
The alternative would be to invest in assets with large foreign exposure - like commodities, foreign stock and debt, etc. - but then when the Trust Fund runs in the black, its taking U.S. tax revenues and sending them OUT of the country - investing them in foreign nations instead of the U.S. economy - thus STILL the burden falls on the U.S. economy!
So how would you have done it in a manner which does not place the burden on the U.S. economy? BE SPECIFIC
I have to ask - what other domestic investment vehicle could have prevented the burden from falling on the U.S. economy?
If the Trust Funds had been invested in U.S.corporate debt, then it would be U.S. corporations that have to make up the shortfall - thus the burden still falls on the U.S. economy.
If the Trust Funds had been invested in U.S. stocks, the shortfall would be made up for with dividends from U.S.companies and with sale of stock positions to mostly U.S. citizens - thus the burden again, falls on the U.S. economy to make up the shortfall.
If the Trust Funds had been invested in insurance contracts with U.S. insurers -still the burden falls on the U.S. economy.
The alternative would be to invest in assets with large foreign exposure - like commodities, foreign stock and debt, etc. - but then when the Trust Fund runs in the black, its taking U.S. tax revenues and sending them OUT of the country - investing them in foreign nations instead of the U.S. economy - thus STILL the burden falls on the U.S. economy!
So how would you have done it in a manner which does not place the burden on the U.S. economy? BE SPECIFIC
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