ok this is a serious question
in my macro class today the professor concluded that the trust fund is an illusion
this is my understanding so correct me if i am wrong
so the government took in the extra tax revenue that it didn't need to pay out current ss benefits and put that money into GOVERNMENT BONDS.
the government bonds is government basically borrowing money and then repaying it back.
But in this case the government borrowed money from itself and then spent it so allthough the government owes the ss trust fund people are saying it is an illusion.
So essentially government squandered the trust fund money? It lent it to itself and then spent it. Just doesn't make sense why we would do that.
So essentially any surplus that Gov't ever earned should not go into Gov't bonds because that is just borrowing/lending from itself?
Am I correct or missing something?