Excerpts:
“In a Ponzi scheme, the people who invest early get their money out with dividends. But these dividends don’t come from any profitable or productive activity — they consist entirely of money paid in by later participants.”
“Now, Social Security is a pay-as-you-go program…Pay-as-you-go is the definition of a Ponzi scheme…So what’s the difference? Ponzi schemes are illegal.”
“The crucial distinction between a Ponzi scheme and Social Security is that Social Security is mandatory.”
“You can force young people into Social Security, but if there just aren’t enough young people in existence to support current beneficiaries, the system will collapse anyway.”
“in 1940, the average worker had to pay only 0.2 percent of his salary to sustain the older folks of his time; in 1950, 2 percent; today, 11 percent; in 20 years, 17 percent.”
“When young people were plentiful, Social Security produced a surplus. Starting now and for decades to come, it will add to the deficit, increasingly so as the population ages. Demography is destiny. Which leads directly to Proposition 4: This is one Ponzi scheme that can be saved by adapting to the new demographics.”
“When Franklin Roosevelt created Social Security, choosing 65 as the eligibility age, life expectancy was 62. Today it is almost 80.”
“FDR wanted to prevent the aged few from suffering destitution in their last remaining years. Social Security was not meant to provide two decades of greens fees for baby boomers.”
Link to full article:
Space filler? Stick to local/regional stuff; we can read junk like this elsewhere…
/friendly suggestion 🙂
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