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U.S. Social Security Is Ponzi Scheme
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by Standtall | November 5, 2009 at 09:15 am
451 views | 39 Recommendations | 2 comments
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Many people attribute U.S. Social Security’s demise to it being a ponzi scheme.“Business Week brings this retort to the idea that many Limited Government Economic Freedom conservatives are asserting, that is, that Social Security is a Ponzi scheme.”
To the people who argue that U.S. Social Security is not a ponzi scheme one only need examine the legal definition of Ponzi scheme to see the vast similarity.
"The legal definition of Ponzi scheme is: “A fraudulent investment scheme in which money contributed by later investors generates artificially high dividends for the original investors, whose example attracts even larger investments. • Money from the new investors is used directly to repay or pay interest to earlier investors, usu. without any operation or revenue-producing activity other than the continual raising of new funds. Black's Law Dictionary, Bryan A. Garner, Editor in Chief. (8th ed. 2004)”
Obviously our forefathers Washington, Adams, Jefferson and Madison didn’t say: “Let’s create social security in the form of a ponzi scheme.”
However, in retrospect, it is now time we revisit and revamp our United States Social Security system to move it away from the ponzi scheme philosophy. Obviously with the many baby boomers coming of age this plan is doomed for failure just based on numbers contributing vs. receiving the benefit.
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Standtall
Lakeville, Minnesota, United States
Most RecentMost Recommended Comments (2)
at 10:01 on November 5th, 2009
All the world's social security systems are headed for bankruptcy. We did a nice article about it from The Economist or some similar magazine in Milan more than 15 years ago.
We could save the US system by having everyone retire 3 years later and taking Social Security away from the top 20% of retirees based on income.
The Europeans and the Japanese are totally screwed because of demograhics and giving out money, as we have done, to people who never paid in.
at 13:26 on November 5th, 2009
To make your highlight work you have to un-hyperlink the URLs. I can do it for you this time.