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Just so you know, I would be happy to end the arrangement, even though it would mean losing my Social Security benefits, which I should come into soon. I think
by tomcam 4y ago
Just so you know, I would be happy to end the arrangement, even though it would mean losing my Social Security benefits, which I should come into soon. I think it’s a terrible system. I am just having trouble understanding your terminology.
- csomar 4y agoHis terminology makes sense and it hits directly to the core of the problem: It's a ponzi scheme. These people were not saving into "retirements". They were giving their money, freely, for other people in the expectation that the next generation will do the same.
- tomcam 4y agoAgree completely that it’s a Ponzi scheme
- matthewdgreen 4y agoThe same thing is true of your investment account. When you buy bonds you're giving money to a company or the US Treasury who then spend it. That money is gone. You're assuming the borrower will choose pay you back from some future revenue stream. When you buy into a stock IPO you're betting that the company will pay you dividends from a future revenue stream (or do related things that make the stock perceived as valuable.) In the case of Social Security that future revenue stream is taxes drawn from the US taxpayer. None of this is a Ponzi scheme.
- phil21 4y agoSocial security has always been simply a means-tested welfare program like any other we have in the US. The tax to to support it the same thing - just an income tax to balance out the budget. I wouldn't describe myself has having "paid in" to SNAP, or disaster relief funds, etc. Just as I wouldn't describe myself as having "paid in" to social security. I simply paid an income tax at the time like any other. If I'm lucky, when I'm in need some other poor sap will be paying it forward as well.