Swampyville's - Ponzi Scheme and Social Security!
by Swamptown
 Swampyville's - You're the Poet!
Nov 06, 2011 | 1160 views | 0 0 comments | 30 30 recommendations | email to a friend | print | permalink
Is there any real difference between a Ponzi Scheme and

Social Security?

A 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 any actual profit earned

by the individual or organization running the operation. The Ponzi

scheme usually entices new investors by offering higher returns

than other investments, in the form of short-term returns that are

either abnormally high or unusually consistent. Perpetuation of the

high returns requires an ever-increasing flow of money from new

investors to keep the scheme going. (Wikipedia) Eventually this

scheme will fail due the lack of new investors!

Social Security:

Social Security is a government investment operation that pays

returns to its investors (retired employees) from their own money

they paid in and the money by subsequent investors (the currently

employed), rather than from any real profit earned by the retired

employees or from the organization (the government). Social Security

differs from a Ponzi Scheme by paying Long Term returns rather than Short

Term returns. There is a Social Security Trust Fund; however, this fund has

been pilfered by the government and it contains mainly I.O.U.'s, placed there

by the government. This scheme will also fail due to dwindling investors

(the currently employed). More so, now that the "Baby Boomers" are

applying for their Social Security dividends. With the investment money

being spent over the years by the government, the only alternative

left is to borrow the money; thus, putting this Nation deeper into

debt!

A Ponzi scheme is a private operation for voluntary investors who want to get

rich quick and the Social Security System is a government operation for

involuntary investors who know they will never get rich!

Since it was passed into law, Social Security has become the Congress's

and the Administration's private "Slush Fund" to do with, whatever; they

desire to do with it!
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