Social Security isn't a Ponzi scheme because it would work perfectly well if the population remained stable over time, or shrank. And it would even be alright i

Social Security isn't a Ponzi scheme because it would work perfectly well if the population remained stable over time, or shrank. And it would even be alright if it grew slowly and linearly. Only if benefits match contributions. If benefits exceed contributions, you do have a Ponzi scheme, and you have to find ways to funnel increasing amounts of money into the system. Social Security taxes, as a percentage of income, have risen continuously since the program was started, well before the baby boomers started retiring: http://www.ssa.gov/history/pdf/t2a3.pdf http://www.ssa.gov/history/pdf/t2a3.pdf