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For one thing Social security’s structure is transparent, so no it’s not a Ponzi scheme at all in that a Ponzi scheme is by definition a subset of fraud and req
by addicted 8y ago
For one thing Social security’s structure is transparent, so no it’s not a Ponzi scheme at all in that a Ponzi scheme is by definition a subset of fraud and requires investors to be unaware of the fact the money coming to them is from new investors and not profits from investing in a product or portfolio of companies.
For another, it’s still not a Ponzi scheme. It makes no promises for returns, and simply requires working age people to set aside money for retired people. If the ratio changes, there is no requirement for the retired people to be paid the same money they were a year ago.
It’s not a Ponzi scheme in any fashion. It’s pretty much a direct, transparent transfer of wealth from the young to the elderly.
- jplayer01 8y agoYou pretty much ignored everything he said and meant. Congratulations.
- Gibbon1 8y agoNot really; a ponzi scheme has a very specific definition. A form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. Social Security isn't a ponzi scheme for a number of reasons, first it's not a security. Second there is no nonexistent enterprise. Instead it's structure is entirely that of an government mandated insurance program.
- deleted 8y ago[deleted]