Is Social Security a Ponzi Scheme? Let's Chat Gov. Perry..... - Page 2
Another interesting feature is the amount of people paying in to the fund today vs. yesteryear. At initiation we had 140 workers paying benefits per individual. Today it is down to 3 to 1. Obviously from an economic perspective this is unsustainable for the burden on the young must rise dramatically for the program to exist in its current state.
To make matters worse, we only have a promise and hope that future generations will be large enough to sustain what is now obviously a charade albeit a popular one if you are on the receiving end. It is not an investment nor is it a fund with your name on it. As the dollars come in via paychecks, they go right out.
I think for all the turmoil whipped up over this, Gov Perry who used the phrase is on the money. It is in fact the classic definition of the Ponzi scheme. There can be no doubt to any reasonable observer I contend.
I suggest we review the Chilean model as a reasonable cure to sustain this currently broken program or you ain't seen nothing yet as the trustees for Social Security have foretold. It is indeed fixable but only if a true leader where to surface. Anyone have the courage? Don't hold your breath but stay positive as that day will come. The sooner the better.