Skip to main content

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

Comment Preferences

  •  How can it make the deficits (0+ / 0-)

    look better when it's a liability in the Federal budget?

    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 06:18:32 PM PDT

    [ Parent ]

    •  perhaps it's terminology (1+ / 0-)
      Recommended by:
      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

      [ Parent ]

    •  it depends on the newspaper headlines (0+ / 0-)

      While accounting-wise SS doesn't affect the budget, the number that gets reported by the newspapers smashes together the SS budget and the Federal budget into a single somewhat-fictitious number.

      •  which number? (0+ / 0-)

        You mean the deficit? Yes, it is true that the deficit number gets reported as a single number. I still don't see how that's borrowing. It is simply misleading the public about the nature of the deficit.

        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 Thu Apr 11, 2013 at 06:22:42 PM PDT

        [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site