Do staunch defenders of Social Security in its current form understand it's nothing more than a Ponzi scheme?

Question

Attaboy Richard, put fuel on the fire of a corrupt government program by forcing more funds to get paid into it. You're a good socialist. And by the way the Cato Institute is libertarian and they do excellent work on public policy. Maybe you could broaden your horizons and take a walk on the wild side sometime.

vt500, there is no difference. Other than in most Ponzi schemes people give their money freely in the mistaken belief that they're getting a good deal. With SS you're forced to give at the barrel of a gun. So yeah, you're right, there is a difference. SS is the worst Ponzi scheme of all.

Answer 1

They constantly deny it, and they actively try to prevent you and I from having a say about our retirement.


"Ponzi" Schemes

Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi thought he could take advantage of differences between U.S. and foreign currencies used to buy and sell international mail coupons. Ponzi told investors that he could provide a 40% return in just 90 days compared with 5% for bank savings accounts. Ponzi was deluged with funds from investors, taking in $1 million during one three-hour period—and this was 1921! Though a few early investors were paid off to make the scheme look legitimate, an investigation found that Ponzi had only purchased about $30 worth of the international mail coupons.

Decades later, the Ponzi scheme continues to work on the "rob-Peter-to-pay-Paul" principle, as money from new investors is used to pay off earlier investors until the whole scheme collapses. For more information, please read pyramid schemes in our Fast Answers databank.
http://www.sec.gov/answers/ponzi.htm

Answer 2

The idea of Privatizing Social Security, encouraged by Wall Street funded conservative think tanks like the Cato Institute and the Heritage and Hoover Foundations, would be a great big Ponzi scheme for the Wall Street brokerage and financial firms that would take a big slice off the top.

Presidential administrations should be banned from raiding the funds, but the biggest fix would be to end the "cap" for the wealthy which cuts off at income over $90,000.

Answer 3

Another problem is that it pays out money to those that never paid a dime into the system. The real crime is that our elected officials used the funds as a slush fund, the monies that we paid in, were then taken out and put in the general funds and in the trust fund was placed an IOU. If they had kept the funds in the trust and then allowed them to grow a steady pace we would have not problem, but no, they used those funds and the only thing we have to show is a empty box with a useless stack of IOU's

Answer 4

You know, that's an interesting perspective. However, I'm sure a smart guy like you sees the difference between social security and a real Ponzi scheme.

Moreover, the surplus of funds generated by payroll taxes on the working is supposed to be earning interest. It's not supposed to be used to shoot little brown people halfway around the world. It is Republican fiscal policy which allows the social security program to resemble something of a Ponzi scheme.

Answer 5

Sure but here is the bottom line - I have paid in for over forty years and you darn well better pay out when I retire.

Answer 6

It might be, but after paying into it for more than 30 years, I want my damn money.

Answer 7

Some do & some don't. Those who do just want it to last through their political career. Those wh don't believe what those who do tell them.

Answer 8

Of course.
Mail me my check starting in January.
I win, you lose.

Answer 9

Sad but they don't.