"As a result, the most likely outcome is that in the 75th year, the government will end up with a big pile of debt, requiring large interest payments."
- A proposal by Senators Cassidy and Kaine suggests using a $1.5 trillion investment fund in stocks and $25.1 trillion in additional borrowing to cover Social Security's funding gap, aiming to avoid benefit cuts or tax hikes.
- Simulations by Boston College's Center for Retirement Research indicate this plan is risky, with a high probability (64%) of investment returns failing to cover the debt over 75 years, especially with lower-than-historical stock market return assumptions.
- Alternative ideas include allocating a portion of Social Security funds to stocks or 'Trump accounts' for children, which critics argue do not address the immediate funding needs of current retirees.
Topics: Public debt, Yield performance, Institutional adoption, Tokenized us treasuries, Global sovereign bond tokenization, Retail access govt debt, Performance vs tradfi
Tags: #socialsecurity #debt #stockmarket #investmentfund #cassidykaineproposal #bostoncollege #senators #trustfund #benefitcuts #trumpaccounts