Just to be clear, the Fed doesn’t steal the revenue from Social Security, the SS Administration has to invest the funds, and they have invested them in treasury bonds. The result has been that for the last thirty years deficits haven’t mattered, since there was a ready buyer for bonds, the SS Administration. The next 10 years are going to be very interesting, and very different. The SS Administration will have a huge deficit, meaning they will have to sell/redeem the bonds. Who will the buy the bonds from the SS Administration? With ongoing Federal deficits, who will the Federal government sell debt to now?
As for military budgets, yes, they are probably too high. They run about 4% of GDP, and that could be halved it we didn’t try to be the world’s policeman. Yet, even cutting it in half, the US would still have a huge deficit, and it would not alter the problem all that much. Furthermore, it would also un-employ a lot of of people working for the military and in defense industries. What would become of them?
Just to be clear, the Fed doesn’t steal the revenue from Social Security, the SS Administration has to invest the funds, and they have invested them in treasury bonds. The result has been that for the last thirty years deficits haven’t mattered, since there was a ready buyer for bonds, the SS Administration. The next 10 years are going to be very interesting, and very different. The SS Administration will have a huge deficit, meaning they will have to sell/redeem the bonds. Who will the buy the bonds from the SS Administration? With ongoing Federal deficits, who will the Federal government sell debt to now?
As for military budgets, yes, they are probably too high. They run about 4% of GDP, and that could be halved it we didn’t try to be the world’s policeman. Yet, even cutting it in half, the US would still have a huge deficit, and it would not alter the problem all that much. Furthermore, it would also un-employ a lot of of people working for the military and in defense industries. What would become of them?