The Social Security Trust Fund In Kindergarten Terms

Fiscal Policy, Monetary Issues, Taxation, Theory and Ideas

Yesterday I had $10 in my right pocket.

I loaned that money to my left pocket, which I like to call my “Right Pocket Trust Fund”. I put an IOU from my left pocket into my right pocket to document the loan.

I then spent that $10 on lunch.

Today my right pocket wants to start collecting on that loan.

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That’s the Social Security Trust Fund. An IOU that requires new taxation, NOT drawing down on savings, to be repaid.

(Inspired by Megan McArdle)

Brad Warbiany