General Discussion
In reply to the discussion: True Democrats don't work to slash Social Security. They don't. Not Ever. [View all]girl gone mad
(20,634 posts)Inflation is the result of aggregate demand in excess of productive capacity, not simply the result of printing money. If printing money always caused inflation to "soar", we would be dealing with massive inflation right now resulting from our government having printed trillions of dollars to bail out the banks after the financial crisis.
Social Security essentially functions like a retirement savings annuity account for those who are enrolled. Paying out as currently slated could not possibly cause inflation. To believe continuing SS as planned could cause inflation, you would have to believe that SS beneficiaries had been expecting the government to default on payments and therefore had not planned to receive those benefits, would be surprised to receive the money and thus would cause a sudden significant increase in demand for goods and services which could not be met easily through expansion of current employment and production.
To repeat, preserving benefits at the current schedule could no more cause inflation than insurance companies making annuity account disbursements or banks making good on Certificates of Deposit does.