I don't agree with this. In the USA employment taxes which are used to fund Social Security are collected and then invested in a special form of US Treasury bond. It is not held out of circulation. The government now has to borrow less from other sources. The government expenditures re-enter the regular channels of money flow in the economy and become indistinguishable from any other spending. Most of the mattress money that is held out of circulation comes from illegal sources or underground economies.
I don't agree with this. In the USA employment taxes which are used to fund Social Security are collected and then invested in a special form of US Treasury bond. It is not held out of circulation. The government now has to borrow less from other sources. The government expenditures re-enter the regular channels of money flow in the economy and become indistinguishable from any other spending. Most of the mattress money that is held out of circulation comes from illegal sources or underground economies.