I was thinking about this. Social Security is a fund that is paid into by people who should be referred to as investors. Right? Our hard earned money goes into this fund and we get it back when we reach "retirement age" - which is determined by the govt. In order for this to work properly, more people have to contribute to this fund every year or it will go broke. In order for Social Security to continue more investors must contribute more money every year. Sound familiar? It should! Charles Ponzi pulled this type of scheme off after coming here from Italy in 1903. That's right. Social Security is nothing more than a Ponzi scheme perpetrated by our own government and we're the victims. Think about it.
A Friend Writes In Amd Says Although Wikipedia is not the most accurate source of info, I find no harm in using it to define a Ponzi Scheme since it's not subject to opinion. Wiki says; "A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from any actual profit earned. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going."
Just like Bermie Madoff's Ponzi scheme, Social Security will collapse. One big difference is that we can't get out of it. We're being forced by our government to contribute to a Ponzi Scheme almost exacly like the one the Madoff was just convicted of perpetrating.
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Not all togehter untrue. The difference being, of course, A Ponzi scheme is a deliberate attempt to deceive as for Social Security, no false conceptions are involved. YOur FICA is taken out and paid out to others and, since you wrote on the subject, you already knew.
ReplyDeletePeople tend to forget that Social Security is an INSURANCE program. It is not a savings account into which you deposit and should expect to withdrawal someday.
ReplyDeleteWhat we pay into the system are premiums to cover the spread of risk. Expecting a 100% or more return is like expecting your fire insurer to refund all your premiums because you never had a fire, or, expecting a former health or life insurer to do the same because you never had a claim. How many of us pay thousands for auto coverage and have never had an accident?? But, our premiums are certainly paid to those who do.
I am not defending social security or implying that the current system is healthy. I am just trying to explain the original concept that seems to have gotten lost in all the debate.
It was not a Ponzi scheme originally. There was plenty of money to cover everyone indefintely witht he original creation of Social Security. The problem is the Congress STOLE the Trust Fund. What they did is illegal. A Trust Fund has only one purpose (trust). You can't BORROW from a Trust Fund. Our government is a criminal enterprise as it has stolen from the people of the United States.
ReplyDeleteNow that they have stolen the funds, it is definitely a Ponzi Scheme.
Your never going to see a dime of it if your 45/50 or younger. Its a joke.
ReplyDeleteSocial Security is not bankrupt of upside down as of now. In fact the system does not become negative until 2041 assuming current day actuarial models. This is just another scare tactic of the right. The same jerks who wanted to do away with the SS payroll deduction and invest in the stock market...how's that working for you? Relax.
ReplyDeleteYeah and by 2041 you will have to be what 88 yrs old to collect your $176.00. What a joke, the thing is broke now why do you think they want all the illegals paying into the system. Seems like its just another tax to me.
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ReplyDeleteGo ahead and relax. I'm sure the government will take care of you. I am afraid they won't take care of me. Therefore, I am not going to relax. I am going to become very irritable and even agitated by the fact that these people are lying to us and stealing from us. They are destroying our economy. They already destroyed the stock market. They are voting to tax the amount of carbon we use. They are criminalizing public dissent. But you go ahead and relax. Just stop telling other people to relax. They should get up and prepare for what is coming (or what isn't coming in the case of social security). Most working class people actually live off social security in their latter years.
If the Social Security system and its benefits were not abused by "goldbricks" who are allergic to employment maybe there would be more money in the kitty.
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