The Social Security Trust Fund In Kindergarten Terms
Yesterday I had $10 in my right pocket.
I loaned that money to my left pocket, which I like to call my “Right Pocket Trust Fund”. I put an IOU from my left pocket into my right pocket to document the loan.
I then spent that $10 on lunch.
Today my right pocket wants to start collecting on that loan.
That’s the Social Security Trust Fund. An IOU that requires new taxation, NOT drawing down on savings, to be repaid.
(Inspired by Megan McArdle)