Is Social Security a savings account or a Ponzi scheme?
"Social Security works by transferring income of a younger generation to an older generation. So in that sense, it is a lot more like a Ponzi scheme in which earlier investors are paid returns off the investments of newer investors.
.....But, like a Ponzi scheme, Social Security does have a simple and fatal flaw: If there aren’t enough new participants in the system, there won’t be enough to support those receiving payoffs.
With the retirement of the baby-boom generation starting next year, the demographic structure of the U.S. population will slowly force Social Security to topple.
There simply won’t be enough workers to support those receiving benefits.
We will need to fix the system soon, or in 30 years Social Security will no longer be solvent."
This columnist suggests that even though it's a ponzi scheme, it's OK cause lot's of old folks made out like bandits.
gimme a break!
"Social Security works by transferring income of a younger generation to an older generation. So in that sense, it is a lot more like a Ponzi scheme in which earlier investors are paid returns off the investments of newer investors.
.....But, like a Ponzi scheme, Social Security does have a simple and fatal flaw: If there aren’t enough new participants in the system, there won’t be enough to support those receiving payoffs.
With the retirement of the baby-boom generation starting next year, the demographic structure of the U.S. population will slowly force Social Security to topple.
There simply won’t be enough workers to support those receiving benefits.
We will need to fix the system soon, or in 30 years Social Security will no longer be solvent."
This columnist suggests that even though it's a ponzi scheme, it's OK cause lot's of old folks made out like bandits.
gimme a break!
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