- Edit 1Before modification by Joel at 01/03/2013 03:53:18 PM
Ponzi Scheme:
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation - as per Wiki
This is the exact definition of SS.
No, because SS is not
1) Fraudulent (or WAS not until St. Ronnie started looting it to pay for tax cuts so large he STILL tripled federal debt) and
2) pays beneficiaries with their employers money as well as their own and that of later investors.
Also, since the time between the first contribution and first return is usually DECADES, SS is virtually assured tens of millions more people paying than drawing. Many die before receiving benefits, and many more are born and enter the workforce. Ponzis fail because they run out of revenue sources once all or most people join, but SS does not, because the number paying in doubles every few decades, and a huge swathe of them do not live long enough to collect.
Seriously, ya'll, Rick Perrys a moron, but ya'll do not have that "excuse." 