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View Diary: Failing To Respect The Third Rail (290 comments)

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  •  perhaps it's terminology (1+ / 0-)
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    goodpractice

    liabilities are part of a balance sheet, not a budget. The budget says "We are going to outlay 'x' dollars this year and take in 'x' dollars this year." If we take in less than we spend, we have a deficit.

    So if SS takes in more than it spends in any given budget year, it makes the deficit look better. There's no "borrowing occurring.

    Every year, SS buys bonds with its surplus (the "trust fund"). This increases the national debt by making more bonds outstanding, though of course those bonds are owed to future beneficiaries not bondholders. No one has "borrowed" from social security, this trust fund debt keeps increasing exactly as it must by law. This would happen regardless of whether lawmakers slashed spending for a given year and balanced the budget, or not.

    Want a progressive global warming novel, not a right wing rant? Go to www.edwardgtalbot.com and check out New World Orders

    by eparrot on Wed Apr 10, 2013 at 06:34:41 PM PDT

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    •  Thank you (1+ / 0-)
      Recommended by:
      eparrot

      I will have to think about it a bit.

      We decided to move the center farther to the right by starting the whole debate from a far-right position to begin with. - Former House Majority Leader Tom DeLay

      by denise b on Wed Apr 10, 2013 at 09:11:49 PM PDT

      [ Parent ]

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