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Originally Posted by flstf
I think you are right if we think of SS as a separately funded program. But it is not. The money goes into the general fund just like any other tax and out of the general fund just like any other outlay. Our polititians (and therefore us) decide what goes where and they can just up the outlays to SS reciprients. SS is simply in competition with military spending, national parks, education etc.. It is in no more danger of sinking than those other areas of spending and they all are funded out of the general budget.
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Let's say this is true.
How does this explain a ratio of almost 3:1 and a rate of return of less than 2%.
How does the explain the past increases in the SS tax and the proposals to increase it again.
General fund or not, it is it's own line item. If the money coming into the program isn't enough to carry the program beyond another 10 or so years, we would have to draw the money from something else.
Check the link above showing the history of payout ratios and you will see what I mean.
If we were to graph this it wouldn't look very good. I can't think of anything that could withstand this sharp of a negative curve.