The definition of a Ponzi scheme: It taking funds from someone with the promise of paying it back in the future with attractive dividends or earnings. And using the funds in the meanwhile to reward another to whom the same promises were made. All of which being done without truly investing those funds.
In that respect, Social Security fails a legitimacy test. Despite repeated political promises and certifications, there is no true investment, nor the use of a lock box or reserve accounting of funds. Nothing of what is required in a legitimate insurance program. Despite the aura of insurance, there is no element of that assurance. Those getting benefits are receiving them from taxes collected on plan participants still working. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole at twitter.)
No comments:
Post a Comment