Talk of The Villages Florida - View Single Post - Social Security Bill passes for Federal Employees
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Old 01-06-2025, 10:55 AM
ElDiabloJoe ElDiabloJoe is offline
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Originally Posted by REDCART View Post
As I understand the issue. The US Gvt borrowed and repaid the funds it borrowed from the SS Trust funds. The scandal, for lack of a better name, was that the US Gvt borrowed these funds at less than the prevailing rate of interest. You think there was a slight conflict of interest? Would the difference in the interest rate have made a serious difference?
Yes, the difference would make a difference. That loss of interest (let's say they paid $3 back in interest instead of the market rate of $5) would compound for years and years and years and would become very significant. Remember, SS is a long-term game, not an overnight loan.
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