The deficits — $10 billion in 2010 and $9 billion in 2011 — won't affect payments to retirees because Social Security has accumulated surpluses from previous years totaling $2.5 trillion. But they will add to the overall federal deficit.
Would someone explain this to me? The federal government's accounting system is FUBAR.
The SS money is spent as soon as it comes in. Because that inflow was more than the total SS payments, the difference went into general spending. Now that the difference is disappearing, it won’t be available to general spending.
42 posted on 09/28/2009 7:12:37 PM PDT by expatpat