Ponzi-Like Medicare and Social Security

The biggest Ponzi schemes of all are being sponsored by the U.S. Government

Prime examples: Medicare and Social Security are estimated to be short by over 110 trillion dollars. That makes them completely bankrupt, were they genuine, private insurance enterprises.

The average American has no idea how Social Security works. He or she will tell you it’s as advertised. It’s not, because there is no trust and reserve fund, though you often hear politicians mention “lock box.”.

Benefits are paid today from earnings of those still working, So, what makes this different from any other Ponzi scheme? Paying off some today with money taken from others, to whom benefits are promised tomorrow. Social Security tax funds taken in, are never really invested. They are used to pay off Social Security obligations of today.

Government has already exhausted what is supposed to be the Medicare Trust Fund. Social Security will run out of money in a couple of decades, or much sooner, when there are probably not enough workers to pay off retirees.

So what makes these programs different from other Ponzi schemes?(See the Earl J. Weinreb NewsHole® comments and @BusinessNewHole tweets.)