Is Social Security a Ponzi scheme?

[XMan]

As it was originally intended, I don't believe it fits the definition. But as it has been excecuted, it definitely firs the critera -

Named after Charles Ponzi, who ran such a scheme in 1919-1920. A Ponzi scheme is an investment scheme in which returns are paid to earlier investors, entirely out of money paid into the scheme by newer investors. Ponzi schemes are similar to pyramid schemes, but differ in that Ponzi schemes are operated by a central company or person, who may or may not be making other false claims about how the money is being invested, and where the returns are coming from. Ponzi schemes don't necessarily involve a hierarchal structure, as in a pyramid scheme; there is merely one person or company that is collecting money from new participants and using this money to pay off promised returns to earlier participants. An interesting site about Charles Ponzi and his scheme can be found here.

 

[charrison]

It originally was a just a rip off since most people did not live to the retirement age.

 

[vi edit]

"If Social Security had been set up by anyone besides the government, it would have been found illegal years ago." -- Source Unknown.

 

[frankroh]

The life expectancy of people when SS started was ~62. So average person collected 2 years of SS before he/she died. Now, people live on the average of 74~75 years. Add to that fact the baby boomers will be entering retirement age, you can see why SS will run out of money by 2020.

If you are an Gen Xer (myself included), you are screwed. You'll pay the most SS tax in your lifetime yet you'll get nothing back once the money runs out.

The gov's solution? Raise taxes and raise the retirement age. IF SS is around when I retire, I wouldn't be surprised if the age when you can start receiving benefits is 80.

The kicker? The SS makes paltry 2% interest on the money they have sitting around. It's not even beating inflation! How pathetic is that?

 

[67gt500]

the SS trust accumulates less interest than the safest MONEY MARKET cash accounts. Yes that's right...

to top it all off, it applies to anyone. Bill gates could apply for social security when he turns 62.

 

[jaydee]

There is no way that it is not. This has actually been discussed before some months ago.

 

[Red Dawn]

<< If you are an Gen Xer (myself included), you are screwed >>

You slackers were screwed form the moment you took your first breath. Of course you guys don't help yourselves by voting in such low numbers. It's like you guys don't even count.

 

[Aenygma]

What's Fonzi go to do with all this?

 

[Red Dawn]

<< What's Fonzi go to do with all this? >>

You must be from Texas!

 

[Red Dawn]

NT

 

[Aenygma]

Very good Red Dawn you figured out how to look at a profile

 

[Red Dawn]

<< Very good Red Dawn you figured out how to look at a profile >>

Hell it was an educated guess.

 

[Aenygma]

Not a chance! It would have left you out by definition

 

[frankroh]

Please, give me a break. It's you baby boomers that are the slackers. The generation of let's sit around and smoke weed and make free love while chastising the goverment for anything they did. Come '80's you became selfish money grabbing yuppies. Now you guys expect the goverment and the Gen Xers to pick up the tab for your retirement.

Boomers gave the least amount of time and money to volunteer work in the 20th century while Gen Xer's have done more than any prior generation in their respective age group.

The best line I've read is the fact that the Boomers are the lost generation between the industrial age and the information age.

So take that, ya Jefferson Starship listening pot-head!

 

[TimeThrash]

LoL, nice on the Texas remark.
Tt

 

[Red Dawn]

<< So take that, ya Jefferson Starship listening pot-head >>

We all took Acid which mutated our childrens Chromsones and out popped you guys. We called then GenerationX. You guys are like Albino Larvea who's afraid to go out into the Sun

 

[jaydee]

<< So take that, ya Jefferson Starship listening pot-head! >>


Lol! Our class just read &quot;Go Ask Alice&quot; in class last month.