Social Security: The Biggest Ponzi Scheme on Earth (By Milton Friedman)

Re:Social Security: The Biggest Ponzi Scheme on Earth (By Mi... by tptacek on Monday January 05, 2009 @11:57AM (#420682)

You're arguing that Social Security isn't an insurance program. I'm arguing that it isn't an investment system. If we're both right, it's still not a Ponzi Scam. It doesn't blow up like a pyramid scheme, and it doesn't attract victims with returns on investment. What it does is allow a generation of entrepreneurs to start companies instead of working for Geico and Alcoa to keep their parents out of the cat food.

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Re:Social Security: The Biggest Ponzi Scheme on Earth (By Mi... by yummyfajitas on Monday January 05, 2009 @12:10PM (#420694)

I'm not sure how it isn't an investment system; you put money in because you are forced, but with the hope of getting money out later. That's closer to an investment than to insurance, though I guess the use of force confuses things.

You could be right, I never thought of it this way. Take a scam, then use a gun to force people to participate without disguising your intentions. Is it still a scam? Maybe not, I'll have to think about it.

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Re:Social Security: The Biggest Ponzi Scheme on Earth (By Mi... by Retric on Monday January 05, 2009 @12:22PM (#420718)

SS is based on the assumption that people will die at some predictable rate. http://www.ssa.gov/history/genrev.html "If I have anything to say about it, it will always be contributed, both on the part of the employer and the employee, on a sound actuarial basis. It means no money out of the Treasury." It's only a scam if people who live don't get paid.

Anyway, they are projecting problems 40 years into the future if nothing changes. An influenza outbreak could dramatically change those predictions as could moving retirement age back 1 month. Suggesting we know the shape of the economy in 40 years is probably overly optimistic.

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