All these points in time are cited as evidence of certain near-future bankruptcy. Unbearable cost over the long range. Further, some critics assert that very large budget deficits and increases in the National Debt will result. The trust-fund investments are worthless IOUs. The interest on the trust-fund investments is not usable.
Critics often say that the interest on the trust-fund securities is never usable.
Further, after that time, they argue that new taxes or borrowing will be needed to pay such interest. Because the Treasury checks for the periodic interest payments are mingled with the payroll taxes paid by employers, it is usually impossible to determine which of these two sources of income are used to meet outgo and which are left over to purchase government securities. One instance, however, is quite clear. Like any good money manager, the trust funds invest daily any excess of income over outgo. Chile has the perfect social security program.