08-26-2013, 02:46 AM
Arrgh. Since many of us on this forum are dependent or partially dependent on Social Security, I'm going to take it is an issue of importance here. All together now, Social Security is not a Ponzi scheme! The essence of a Ponzi scheme is fraud. While you can check with Bernie Madoff, I can pretty well assure you he did not reveal his means of financing fund returns to his clients. The fraud is specifically that Ponzi schemers assert that the returns result from productive investments that are being made and, in fact, they are not.
Social Security, on the other hand, produces laboriously detailed reports every year from their actuaries. There is no fraud. Period. "Intergenerational funds transfer" is supposed to be a good descriptive term. Basically money is collected as input from current workers and distributed to retirees as output at certain benefit levels. In the early 80's the input was bumped to account for the boomer bulge and for a time there was more input than output. Now with the boomers retiring in greater numbers output is greater than input. We get out of balance (relative to current benefit levels, or in balance relative to input/output) in 2030-something and benefits, without a fix, reduce to 75% of current levels indefinitely based on estimated population. To change the situation either adjust the input or output. To maintain benefits bump the input by raising the income cap, or reduce the output (benefits) and screw seniors. And it's all laboriously documented every year. Anyone can check where we are with Social Security. Nobody is hiding anything. There is no fraud.
Social Security, on the other hand, produces laboriously detailed reports every year from their actuaries. There is no fraud. Period. "Intergenerational funds transfer" is supposed to be a good descriptive term. Basically money is collected as input from current workers and distributed to retirees as output at certain benefit levels. In the early 80's the input was bumped to account for the boomer bulge and for a time there was more input than output. Now with the boomers retiring in greater numbers output is greater than input. We get out of balance (relative to current benefit levels, or in balance relative to input/output) in 2030-something and benefits, without a fix, reduce to 75% of current levels indefinitely based on estimated population. To change the situation either adjust the input or output. To maintain benefits bump the input by raising the income cap, or reduce the output (benefits) and screw seniors. And it's all laboriously documented every year. Anyone can check where we are with Social Security. Nobody is hiding anything. There is no fraud.