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This is almost too ridiculously misinformed a statement to even justify replying to, but since it's easy enough, the SS trust funds earn interest through invest
by awinder 10y ago
This is almost too ridiculously misinformed a statement to even justify replying to, but since it's easy enough, the SS trust funds earn interest through investment as necessitated by law. They've also been used as an intergovernmental loan vehicle, acting to keep gov't debt lower than it would otherwise have been. It's not a Ponzi scheme.
- readams 10y agoThe trust fund is an accounting fiction. Social Security is paid out entirely by proceeds from people paying into the system. If ever the number of new people paying in is not enough to cover the outflows, then the system collapses. That is how a Ponzi scheme works.
- awinder 10y agoThis is fake news.
- vkou 10y agoOr, the inflows are increased, or the outflows are decreased. All of which can be done with a stroke of a pen. If, for instance, we get rid of the contribution cap tomorrow, Social Security becomes 100% funded - in perpetuity. Madoff was in no position to do so. Congress is.
- jessaustin 10y agoMercedes dealers and developers of luxury apartments in Singapore, London, etc. would love this.