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The US Government tries the same trick. Social Security is a called an "insurance program" although it is completely unrelated to conventional insurance. The c
by bgorman 6y ago
The US Government tries the same trick.
Social Security is a called an "insurance program" although it is completely unrelated to conventional insurance. The closest financial instrument is a Ponzi scheme, which is illegal under US law.
- jbn 6y agoIt is insurance in the sense that it pools the risk. The risk here is "aging" ("Social Security" in the US only covers base retirement, whereas "Social Security" in France covers 5 risks), it only happens to be a risk that realizes 100% of the time, unlike fire insurance for instance.