So Why Do We Have Those Trust Funds, Anyway? (2)

• Social Security set up, nominally, as insurance system

  • People believe they are paying into "their" accounts

  • Have expectation of being able to draw upon "their" accounts at retirement

  • Psychologically and politically invested in continuation of program

    • Entitlement

• So Social Security trust fund was bookkeeping convention ...

  • ... with profound political purpose ...

  • ... but no economic necessity