If the average American really understood how their money is created and destroyed at the federal level there would be widespread demands to modify the system or complete revolt against the government. One of the worst policies that work against the working class American is our retirement system, Social Security and Medicare. Together, via taxation, they remove almost a quarter of wages from workers' purchasing power but those tax deductions actually do nothing to "fund" future benefits.

Both rely on Treasury bonds for future payments, but few people realize that those bonds contain no actual money to fund anything. Bonds are a "promise to pay" contract with our government that states that future repayment, plus interest, will be "created" when the bonds mature. The money "loaned" to the government, especially with a sovereign fiat currency, is never needed to fund any level of future benefits because the currency issuer always has an infinite amount of its currency available to spend for anything that can be resourced in the private sector.

Bonds can't "fund" federal spending because their purpose is to destroy reserves against the mostly irrelevant debt. (Ditto with taxes, but that's a subject for another time.) This was once intended to protect the now-defunct gold reserve. Simple logic would show that existing currency is required to purchase Treasury debt and that, at the macro level, can only originate by Congress deficit spending.

If anyone doubts this I would ask them why Social Security and Medicare (part A) benefits are at risk if Congress doesn't approve raising the debt limit every time that political nonsense comes up? Like all suffering of the poor and middle class, retirement and healthcare benefits are entirely a "political choice" made by those in power that benefit from holding the people hostage.