Quote:
Originally Posted by Guest
It will take a little reading but here it is. I have posted this before.
The Budget and Deficit Under Clinton
"Some readers wrote to us saying we should have made clear the difference between the federal deficit and the federal debt. A deficit occurs when the government takes in less money than it spends in a given year. The debt is the total amount the government owes at any given time. So the debt goes up in any given year by the amount of the deficit, or it decreases by the amount of any surplus. The debt the government owes to the public decreased for a while under Clinton, but the debt was by no means erased." |
You seem to have a good understanding of this subject so could you explain what happens to deficiet and debt when Social Security trust funds are so-called cashed to pay benefits. There are no assets and I understand the borrowed funds are already included in debt. The money being paid out will be real so where will it come from and how is it accounted for. There has to be more borrowing somewhere, or spending cuts, or tax increase?
Thanks