Would You Settle Your Claims on Social Security for 83 Cents on the Dollar?
7th April 2011
Could Social Security’s debt be settled at a discount by voluntary transactions with its creditors, namely American citizens? I propose that it could. Every time this happened, it would reduce Social Security’s net deficit, because its debt would go down by more than its assets, just as with any individual or company in a similar situation. This is basic balance sheet arithmetic: if your debt goes down more than your assets do, your net position improves.
I would. In a heartbeat.