Social Security


Social Security was put in place after the fact incompetence of 1929, to help insure Business and labor had a safety net, and not completely be in the trash Can, and you know your self that Business is not going to sign off on anything unless it gets something for it, example the contributors to Social Security spend when in need for goods and services, and the Business get the sales revenue from the selling goods and services to survive hopefully.
Good thing and bad thing is that 1929 happened again in 2008!!! It is not a retirement, it is an addend to what ever sort of retirement the people can build for themselves in the private side, of which is not much in the area Economy, and the mentality of maximizing profits on the backs of cheap labor.
The Social Security Act specifies that the monies in the fund may "be invested in securities backed by the full faith and credit of the Federal government," such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds.
So, essentially, the government can "invest" Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). This has always been the case.
The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. a government program that provides benefits to members of a group that has a statutory entitlement; Entitlement; right, power, prerogative, privilege, claim, a right to benefits that is granted esp. by law or contract (as an insurance policy),
NOTE: Some courts have held that entitlements are a property interest and therefore subject to procedural due process under the Fifth and Fourteenth Amendments to the U.S. Constitution when denied by federal or state governments.
Read more: The monies in this fund are managed by the Department of the Treasury; they are not, nor have they ever been, put into the "general operating fund."
During the Johnson administration, Social Security and other Federal programs that operate through trust funds were counted officially in the budget. This did not mean that it was actually part of the general fund; rather that it was finally recorded as part of the budget.
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