Why is Social Security not a Ponzi scheme? Or is it?
A Ponzi scheme is a fraud. Nobody is being misled by SS & is the morally the polar opposite of a Ponzi scheme. Certain people make bogus claims that SS is a Ponzi scheme. The reason that SS isn't a Ponzi scheme is that it isn't a lie. It keeps accurate books, attested to by a board of trustees and an actuary. The issue keeps getting raised — usually by people who object to the whole idea and say "Ponzi scheme" to inflame emotions.
You have asserted an opinion without foundation.
I wrote an article on SS Medicare and Obamacare that has a lot of info on your question.
A Ponzi scheme (/ˈpɒn.zi/; also a Ponzi game) is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading.
The government requires new workers paying FICA. They did this in the 80s by adding government workers, Congress and other members of the public sector. These workers didn't need SS or Medicare they had FERS and FEHS. The SS and Medicare is just a fringe benefit.
The point is that the SS and Medicare Trust funds have been inadequate to pay benefits of an aging workforce. Medicare has been infected with numerous and continual major fraud.
Operators of Ponzi schemes can be either individuals or corporations, and grab the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent.
In the case of government they just make it a mandatory law, and before it is really a tax, they have SCOTUS backing because TAXation is found directly in the constitution.
Companies that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.
This need for new workers is the reason that FICA is a Ponzi scheme.
Without the new workers the Trust Funds go dry.
That is why the government has modified the SS and Medicare.
SS by raising the retirement age to slow down the drain on the fund.
Medicare by using the donut hole, and requiring medicare users to pay for health insurance. They even take it right out of their SS benefits.
Brad says --- how fair is SS compared to what the people give to the public sector employees and congress.
SS and Medicare require mandatory payment into FICA as long and forever that you are a wage earner.
Workers entering the workforce today most likely will die or wait more than 50 yrs to get benefits. This is the ponzi part.
SS benefits are added to your AGI on Income TAX if you have additional income besides SS.
There is no vesting of SS retirement benefits, and no def of benefits.
You are lying. Ss is not a complete fraud and it won't be 'Pay as you go" until 2038 - and that's because the funds were raided. Mebbe that why the Dems want DACA - for future over the table workers to pay in, and not working under-the-table.
Always have to make it personal rather show some facts. You ignored all my points that make it a bad system and a ponzi scheme. Do the math.
I gave you facts DW, What does 2038 mean to you? Didja think it was a Swedish rock band?
It might as well be a band, because it has no other significance.
How does that help people getting into the workforce today and having to wait 50 years for retirement. If u look at the FICA history they keep raising the TAX.
by Marc Woodard 8 years ago
This Exerpt taken from my hub "A Stern Message to our Health Reform Politicians""They steal our tax dollars without representation, run up debt in back room deals and God knows if our GDP will be enough to clean up our debt even within a hundred years. You see if Bernie Madoff would...
by Ralph Deeds 7 years ago
Is Social Security a Ponzi scheme as claimed by GOP presidential candidate Rick Perry or can it continue to pay full benefits for 25 years and can easily be put on a sound financial footing for the forseeable future with a few minor changes as claimed by the Social Security fund trustees?
by SparklingJewel 6 years ago
I would be interested to hear opposition to the stated "facts" in this video...Has anyone done an extensive research on the origins of Social Security?http://www.youtube.com/watch?v=V4BjLrTq … r_embedded
by bradmasterOCcal 2 years ago
Is there a problem with Social Security and Or Medicare?If there is a problem, what kind is it?Who created the problem, and when?How do we fix it?
by spbarton21 6 years ago
Do you believe that Social Security is a Ponzi scheme?Social Security was founded in order to give Americans assurances that they would have money when they retired. The idea was good on paper as a growing population would always ensure that the number of people paying into the system would be more...
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I've recently joined JBP and I like the concept, I've even talked about it in my latest hub. How do you feel about similar sites and generally about the concept of making money online?
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