Tue 15 Nov, 2011 01:19 pm
IF someone contributes $45,000 over a lifetime into social security and dies after receiving only $10,000 in benefits, where does the remainder of their contribution go?
Into the pot.
No, in reality the money goes out as fast as it comes in, there is no pot of money sitting in Washington, all that sits in the vault are slips of paper with "IOU" written on them.
There are no "IOUs". Look up the SS Trustees' Summary for plenty of info. The trust fund contains Treasury securities that are essentially the same as T-bills except they are not marketable. If those Treasuries are "IOUs", then every T-bill held by every investor also owns an "IOU".
The whole notion of "IOUs" is a republican spin intended to undermine your confidence in the SS System so you will agree to dismantling it.