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- Aug 2, 2011
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- 35,800
I guess I should have said "your government savings program dollars were given to people whose government savings program dollars were given to people whose government savings program dollars were given to people who never paid into it." Or just called it a ponzi scheme like Tom did.
But whether people complain about it or not isn't what makes it a bad idea. It was a poorly designed system that was doomed from the start - it only works while the labor force is increasing which means it doesn't really work, it just looks like it does temporarily. That became obvious as the population aged and the birth rate declined and has probably been exacerbated by the offshoring of high paying skilled labor jobs thanks to largely to unions and high corporate taxes.
There have been several attempts by people in Congress to extend social security benefits to people who never paid in as part of "immigration reform" and because it's a government program run by morons, it's rife with fraud and waste due to things like social security fraud via identity theft, often from illegal immigrants and foreign nationals. I definitely don't feel too good about my government savings program dollars going to pay for that, and I doubt most people except for possibly MC, do either.
Nothing you?re saying is wrong.
Almost 90 years later I just see it as closing the barn door after the horses are already out.
I would say calling Social Security a ?Ponzi scheme? is hyperbole, not that I have anything against hyperbole, I use it often and in my opinion quite well, if I do say so myself.
Obviously I don?t know what things were like in 1935. Was the creation of Social Security, or was the way it was set up, an overreaction to the perceived emergency that was not as dire as it was perceived? It might?ve been. I was around for the TARP and of course the recent Covid lockdowns, and I look at them as both over reactions.
I was born near the end of the baby boom; I believe the problematic demographics changes you refer to in your first paragraph started happening fairly early in my lifetime. People started realizing, I think generally for the first time, the shitstorm coming down the road. It wasn?t going to happen the following year or the year after that, but it was becoming obvious.
I guess nothing is more obvious then when it becomes obvious.
So anyway, eligibility is getting later and later in life and the percentage of a ?full amount? is getting less and less.
I don?t know how it?s going to play out. I guess people are just going to have to start working longer, saving more and smarter, and counting less and less on Social Security.
As far as the fraud and the other problems that you refer to in the second paragraph, yes I wanna get that cleaned up now.