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.
Furthermore, conditions in Chile were relatively quite different than in other countries, so that what worked out well there would not necessarily do so elsewhere. On the other hand, other countries generally have budget deficits and so cannot follow this course of action. That result will be achieved, almost certainly, under normal demographic conditions. This represents a gross misunderstanding of the basic purpose of the program, as discussed earlier. At the same time, the total taxes paid by employers and workers will remain unchanged, and there will be no effect on the general budget deficit or the National Debt.