bearfund

U.S. Savings Rate To Increase, Finally

Frank, that might be true if the money paid into social security went into a SWF or a similar agency that invested in something productive or even bought gold on the open market and stuffed it in a vault somewhere. Instead, mostly it is lent back to the government at miniscule rates of interest through accounting tricks. The government in turn fritters it away. When the time comes to claim the "savings", the only ways to do so will be (a) printing money, (b) borrowing more (at much higher rates), or (c) increasing payroll taxes. There is no social security trust fund. Therefore there is no savings. It's all illusory. Most Americans correctly account for FICA deductions as taxes. They're not savings and they're not coming back to you.