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Not to get into a tangent about social security and how the program manages money, but this isn't quite an applicable comparison. Gov't sponsored 'ponzi schemes
by ruddct 11y ago
Not to get into a tangent about social security and how the program manages money, but this isn't quite an applicable comparison. Gov't sponsored 'ponzi schemes' can pretty safely be assumed to exist for about as long as the sponsoring government does (or, if they're dissolved, one can pretty safely assume some kind of payout. At least in a revolution-fearing democracy).
If the government goes away, your investment into a pension program is probably a pretty low priority. A ponzi scheming company disappearing has a much more direct effect on the people who've invested in it.
- drcode 11y agoSocial security isn't a Ponzi scheme because it's mandatory. If it was a true Ponzi scheme, you'd have the option not to participate in it. /s
- Gibbon1 11y agoSocial Security is an insurance program. Which is why it's formal name is: Old-Age, Survivors, and Disability Insurance (OASDI). As such it doesn't promise to invest the money paid in at all. 90% of it is just paygo. Money comes in from working stiffs. Money goes out to grandma so she can buy catfood. The remainder is 'invested' in government securities.
- toast0 11y agoThere are some options, https://faq.ssa.gov/ics/support/KBAnswer.asp?questionID=3821&hitOffset=19&docID=2025 https://faq.ssa.gov/ics/support/KBAnswer.asp?questionID=3821... Clergy also may have the ability to opt out.