Imagine yourself in the following situation: In a few years, your income will drop to where you can afford to pay only 80 percent of your mortgage. After a brainstorm, you go to your banker and ask to borrow an additional sum to invest in the stock market, with an expectation that your profits will prevent a foreclosure.

What do you think the banker would say in that situation?

Two U.S. senators, Bill Cassidy (R-La.) and Tim Kaine (D-Va.), should be asking themselves a similar question. In the long run, their proposal to invest part of Social Security’s trust fund in equities deserves serious consideration. However, in the near term, raising cash to invest in the stock market means pushing up U.S. public debt — already at an historic high — even higher still. A Wall Street downturn could hasten Social Security’s insolvency.

There are currently no hard assets in Social Security’s trust fund that can be invested in stocks, real estate or any other private asset. More cash now flows out of the trust fund to pay for benefits than comes in from payroll and income taxes.

Social Security's cost has exceeded its non-interest income

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