> The German state pension system basically amounts to a Ponzi scheme Yes and no - that is how the world, how life works! The currently working take care of t

> The German state pension system basically amounts to a Ponzi scheme Yes and no - that is how the world, how life works! The currently working take care of the currently too-old-to-work. No matter what layer and labels you put on top, that has always been and will always be true. Unless you create time machines, or eliminate aging (with its own huge set of issues). So yes, the new generations have to take care of the previous ones. "Capital" is only an information layer on top of that reality used to determine who gets what, but it does not replace the reality of who and when produces goods and services. You can shift information about capital into the future (you "saved" for retirement - but only this information is transmitted to the future, not goods or services, which are always used in the present), but actual goods and services always have to be produced and provided by the working part of the population. You can shift as much "capital" (information) into the future as you want, "save" incredible amounts of money, it will change nothing. > Not only is this pretty much a textbook case of "unsustainable", Quite the opposite. That is the best kind of sustainable because it actually represents truth most faithfully. The "capital" based magic - that is much more problematic. It masks and attempts to hide the reality. Also a problem in the German system is the many exceptions. The core German system is the most honest one about reality: The currently working take care of those that no longer don't. If there are too few in the new generation to take care of the expected number of old non-working people in the country, then seeing that problem is GOOD, trying to hide it behind some finance magic is bad.