>>>In this case reserves are simply pre-funding.
>>>Here in my community, we pay into a common fund for snow removal.
>>>I'm on the finance committee that sets the monthly contribution.
>>>We're just about evenly split - some want to assume a heavy snowfall and fund highly, so that no assessment will be needed if a lot of snow comes. Any excesses would be retained to cover the blizzard when it comes (and it will)
>>>Others (like me) would rather assume an average snowfall based on history and do an assessment when the blizzard comes.
>>>Why? I'd rather hold my money than let someone else hold it.
>
>As I keep saying, that's why Medicare has a $47T deficit.
That "deficit" implies that Medicare's obligations exceed its assets by that amount.
a. Why is it doctrinally true that the level of contribution - not the level of the obligations - caused the deficit?
b. As we saw during the financial crisis, US government deficits can disappear overnight.
c.Saying that it exists because my teacher was buying a house when she should been paying more to fund procedures that were unheard of when she started working is a bit of stretch.