Comment Re: This is shameful. (Score 1) 129
The Social Security Fund can't and won't go "bankrupt." It may be depleted to the point where it has insufficient funds to cover current obligations, but that isn't the same as being bankrupt. The only reason its depletion might matter is that Congress required that benefits must be paid from the Fund rather than from general revenues. Thus, if benefits are reduced, it isn't because the Fund was depleted, it is because Congress is unwilling to pay the benefits. In any case, contributions would continue and, eventually, once the Boomers die off, the fund would once again have a positive balance.
We should be asking why we have a Social Security Fund in the first place... Back in the days of a gold-backed currency, a savings fund made some sense. But, today, given that we have fiat currency, saving money in one year to pay out in some future year just doesn't make a great deal of money. The reality is that Social Security contributions are just one of several sources of Federal revenue. The primary task of those controlling Federal spending is to ensure that inflation is controlled. Pulling money from a "savings fund" doesn't make the spending any less inflationary -- even though collecting the funds is, in fact, anti-inflationary because it reduces disposable income. The Fund is an anachronism. It may have made sense some many decades ago but no longer does.
If benefits are reduced, it won't be because the Fund ran out of money. It will be because Congress is unwilling to authorized continuation of the benefits with a reduction. It is law that requires benefit reductions, not anything which is inherent to the Fund itself or that comes from some economic imperative. Whether the spending is from the Fund or taken from general funds makes no difference to the inflationary or economic impact of the spending.