Why isn't social security recognised as a ponzi scheme?
>>74728990
What makes it a ponzi scheme?
>>74728990
Ponzi schemes work better if your mark doesn't know.
>>74729183
new invetsors/citizens pay capital towards older investors/citizens
>>74729183
the government is taking money from other people to pay off the people who '''''''''''paid'''''''' (because some old useless prunes who didnt pay taxes get SS) soc sec tax earlier in their lives, and this caused a vicious cycle.
people born in the late 80s and 90s will be the ones ultimately fucked by this.
>>74729808
dang that doesn't sound too good
>>74728990
Because it's quantitative easing by proxy
All the billions that get paid out each week go straight back into the economy because it's not enough for people to save.
This helps drive the machine, keeps inflation low, unemployment low, interest rates low and market confidence high
Wage cucks now believe they can afford to live large on credit 'cause they deserve it kek.
Meanwhile they sling shit at social security """""leeches""""" not realising without that gov stimulus they'd quickly be out of job and home themselves and living on handouts.
>>74729688
that alone doesnt make something a ponzi scheme, you fucking moron.
>>74729183
Pon·zi scheme
ˈpänzē ˌskēm/
noun
a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.
>>74731588
but its not fraud you fucking moron. people know exactly what is going on.
>>74731650
http://www.forbes.com/sites/johngoodman/2015/08/13/why-was-social-security-designed-like-a-ponzi-scheme/#3fcb8243734f
http://www.pbs.org/newshour/making-sense/americas-ponzi-scheme-why-social-security-needs-to-retire/
http://www.wnd.com/2016/02/the-collapsing-social-security-pyramid-scheme/
http://elitedaily.com/money/social-security-gen-y-greatest-ponzi-scheme-history/702218/
http://www.washingtontimes.com/news/2012/aug/10/the-social-security-ponzi-scheme/
>it's not because I said so
please take your daily dose of the red pill.
>>74728990
>Why isn't social security recognised as a ponzi scheme?
Because the <1980 people want to keep it going because they paid into the system and are now coming closer and closer to retirement. If it crash now they feel like they lose out on what they earned so they keep it floating with debt and foot the bill to generation Y and the people born after that.
Prepare to get fucked /pol/, i hope you have an exit plan for when you are old because there won't be any government money for you.
>>74731461
No, but it being dependant on constant rising number of population-slash-payers does.
>>74731905
you seem to be unable to read definitions. please explain to me which part of ss is a fraudulent investment in fictitious enterprise?
>>74732009
no. a ponzi scheme is dependent on fraud which isnt happening.
how do you not understand something a 6 year old could comprehend?
>>74732226
please see the Forbes article and WND article for response.
>>74732342
nothing the articles say makes it fraud.
>>74728990
Because a Ponzi scheme is voluntary. SS is not.
>>74732403
>First, as we have already seen, it meets a need. Second, politicians can appear to meet the need without really paying for it. That means they can confer benefits on some without appearing to impose costs on others. This works because of a Public Choice principle: Information is costly, and because people who bear that cost and learn about what is going on cannot use that information to effectively change anything on their own, people tend to be rationally ignorant about what is really going on. Along the way, government can use its money to falsely advertise (pretending that there really are funds stashed away in “trust funds” in ways that would land a garden variety Wall Street fund manager in prison). It can also deny, ignore or try to minimize the fact that we have promised future retirees far more than any revenues we expect to collect.
Third, pay-as-you-go social security generates revenues in the early years that are much larger than the required payouts. This means that (like a chain letter), politicians can give retirees in the early years more than what was promised. They can also spend the extra revenue on other programs that confer benefits on their constituencies. The incentives to do these things seem to be irresistible. Politicians who don’t do them lose elections.
Finally, as more people are brought into the system, the taxpayer base expands. As the years go by, the beneficiary base also expands. This creates a “ratchet effect,” making it harder and harder for a future group of politicians to undo what has been done.
Forbes Article
>>74732403
The pensions promised exceeded what could actually be paid from the money that was put in by the recipients. But the first generation to enter Social Security would have their pensions paid by money received from the second generation, as well as its own money. The second generation would be paid with money that included what was paid in by the third generation, and so on.
This is the principle behind a “pyramid” scheme, in which the first investors can get a big return on their money by simply paying them money received from subsequent investors. But it is only a matter of time before reality catches up with us, since the pyramid scheme is not actually investing any money or saving any money.
That is why a private insurance company that sold annuities based on a pyramid scheme would be prosecuted for fraud, and its officials put in prison. But you can’t put Congress in prison, even when that is what it deserves.
WND article
>Learn to fucking read
>>74732801
>>74732822
still not seeing where the fraud is. see the problem is, for something to be a ponzi scheme it needs to be fraud and new investors paying out to old investors. since it only meets half the definition of a ponzi scheme it cant be one.
What's social security? If it's the same as a pension fund then no, it's not a ponzi scheme because the money is being invested
>>74728990
>Why isn't social security recognised as a ponzi scheme?
Lol, why would I dump my money in this ponzi scheme? My pension plan is investing my money in big and stable companies like Enron, Worldcom or Tyco. With their dividend alone I might retire 5 years earlier.
>>74728990
>Why isn't social security recognised as a ponzi scheme?
Boomers.
