4 ms·

so main difference is kinda transparency? everything else matches. you (old investor) are receiving profits from new investors. and in some countries retiremen

• lotsofpulp 5y ago
  Main difference is the profits come from work being performed by members of society that can work, in the form of actual problems being solved. The members of society who are working hope this will help perpetuate the cycle by allowing new members of society to work and solve problems when the previous working members are not able to work.
• loeg 5y ago
  Some other differences. Ponzis promise high rates of return on investment; Social Security promises vastly below-market returns for most workers. Investors can theoretically redeem from Ponzi investments at any time; SS is completely locked up until you're ~62. Ponzis are voluntary; SS isn't. SS is a mandatory government spending program; ponzis aren't.
• kmonsen 5y ago
  Ponzi schemes have a fairly specific definition, social security is just a tax that we pretend is going to yourself when you get old. In reality it is just a tax paid by workers and some amount of the government's budget is used to pay retired people money.