Moynihan on Social Security "Woes"

[Max Sawicky]

"1. Using the excess FICA to pay down the debt does not "spend" Trust Fund
money as Moynihan claims, but just substitutes one debt for another, with a
net of no change except for interest. Am I right?
>
> mbs:  No.  Using FICA to pay down non-FICA debt doesn't make the Trust
Fund balance any bigger.  Arguably, less non-FICA debt makes the Feds more
able to pay SocSec, but we could say the same for public investment.

Isn't this what he said--only he said the trust fund would be smaller?
Christian

mbs: I don't think so. Under current law the Trust Fund balance is not
affected by use of the Trust Fund surpluses lent to rest of the Gov.  The
Gov's debt to the Trust Fund is unmchanged by what it does with the money it
borrows from the Trust Fund.  It *cannot* give or lend the money back to the
Trust FUnd under current law.