re: #9 Minister

You guys are confusing cash flow and cash balance. The trust fund still has a positive balance. But that wasn’t the question.

The federal deficit is, by definition, the difference between federal outlays and federal revenues. The outlays include social security payments and the revenues include the social security payroll tax. The difference between these two is projected to be $130B.

Social security’s deficit is included in the federal deficit, and makes up about 8% of it.

It is possible that it is you who is confused.
On any July 1 (beginning of fiscal year), the SS fund has a “balance” that is composed of cash and treasuries, mostly treasuries, since cash doesn’t earn anything.
During the fiscal year, July 1, X through June 30, X+1, there are receipts (this will be discussed) and there are expenditures (this will be discussed). If the receipts exceed the expenditures, there will be a surplus (positive cash flow) for that FY. If the expenditures exceed the receipts, there will be a deficit (negative cash flow). The balance at June 30, X+1 will equal the July 1, X balance plus the cash flow or deficit.
I hope that this elucidates “cash (cash + treasuries) balance” and “cash flow”.

The federal budget does NOT include SS. SS is a separate fund.

I am sure that you understand my explanations, but you may not believe them.
I will, sincerely, appreciate it if you would offer an explanation as to why my comments are in error. That’s how we learn.

The purpose of this posting is to expose the rhetoric offered by the “talking heads” and politicians, including President Obama, intended to “tenderize” the SS payers into believing that we must address SS BECAUSE of our federal deficit.

Yes, SS must be addressed, but not because of the federal deficit.

The initial part of the SS discussion begins with becoming aware that a SS surplus or deficit is separate from the federal budget.

AGAIN: It is critical that you ask your Senators and Representative what portion of our federal deficit is due to SS.
Yes, it is a trap.

Thank you for your comments. They are appreciated and needed.
It is sad that the Little Green Football voyeurs don’t get involved with this critical subject.

mz