Moody’s strips U.S. of triple-A credit rating

Re:Moody’s strips U.S. of triple-A credit rating by s1artibartfast on Saturday May 17, 2025 @01:36PM (#44015765)

I see. I think there is a lot of baggage with the insurance analogy, like probability and conditional payout which are absent.

The money isnt held in a dedicated account with your name on it. However, how much you pay in is rigorously tracked and used to directly to determine how much you get.

The closest thing is a pension. Like a pension, SS pays out X% of your taxable salary. X is progressive with high earners heavily subsidizing low earners.

SS starts by paying out 90% of taxable salary in the lowest bracket. As income goes up, this reduces to paying out 15% in the top bracket. The brackets are referred to SS bend points.

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Re:Moody’s strips U.S. of triple-A credit rating by margalabargala on Saturday May 17, 2025 @04:23PM (#44016734)

> I think there is a lot of baggage with the insurance analogy, like probability and conditional payout which are absent.

I agree; it was a poor choice of analogy on my part.

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