Is Social Security a Ponzi Scheme?
By K46620
@K46620 (1986)
United States
December 22, 2009 4:49pm CST
I wrote an article awhile back about Social Security being run like a Ponzi Scheme.
http://www.associatedcontent.com/article/2384674/social_security_a_ponzi_scheme.html?cat=75
Remember, a pnozi scheme is: A fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned.
That's pretty much how it is run nowadays.
What do you think?
6 responses
@andy77e (5156)
• United States
1 Jan 10
Government itself, is a ponzi scheme. Thus anything created by government is the same.
What does government do? It takes money from some, gives it to others (generally for political advantage), and yet creates no wealth itself.
Welfare, public housing, subsidies, and so on.
The only real service provided at the federal level would be national defense. But that is roughly $800 Billion of $3.6 Trillion in government expenditures each year?
1 person likes this
@winterose (39887)
• Canada
23 Dec 09
that is an interesting idea, I never thought of it. \But because it is run by the government the difference is that it is legal. Check me out on associated content too!
1 person likes this
@winterose (39887)
• Canada
3 Jan 10
cool i am also on associated content and examiner
1 person likes this
That's gatta be the biggest Ponzi scheme ever.
@veromar (1453)
• Argentina
4 Jan 10
Elmiko, yes we know how it works and yes we pay into it. However, it is a law. There's no way around it. You have a job, a certain amount is automatically taken out for social security. A few years ago, I tried to withdraw myself from the social security system. In a nutshell, I was laughed at and told it was impossible. You pay, or else.....
@thegreatdebater (7316)
• United States
22 Dec 09
The problem with this argument is that there is no fraud involved here. We all know that the money that we put in today is going to existing claims on Social Security. I understand what you are saying, and Social Security is like a ponzi scheme when the economy is bad, but when the economy is good, social security does very well. Remember the Social Security Lock Box?
@veromar (1453)
• Argentina
23 Dec 09
Well, K46620, according to your definition of what a ponzi scheme is, then I'd have to say Social Security has to be one. I was always under the impression from childhood, that the money we "contribute" was to be put into an account for us and would be made available upon reaching retirement age, or when circumstances are such that withdrawals are necessary. Kinda naive on my part, huh? lol. All I can say is, I started contributing when I was 15. Just turned 45 and I'm terrified that in another 17 years when I am eligible to start receiving it, it won't be there! My mom has been drawing her Social Security for the past couple of years. She recently told me she received notification that she was owed some funds because they had screwed up her payments, or some such thing. She got a fairly sizable check as a result. If it it indeed a ponzi scheme, I'd guess that there's not a doggone thing we could do about it.
@K46620 (1986)
• United States
2 Jan 10
You are right there's nothing we can do to recover the lost money.
The money was supposed to be set aside till you reached retirement but politicians thought they had a better idea, use the money now to pay for other projects the people want. This helps get them re-elected. In other words, they used up the money to buy votes.
