Apr
13
Ponzi Schemes by our Government (SS)
April 13, 2009 | Comments Off
Late in 2008, some people discussed the differences and similitudes between the Ponzi Schemes and the Social Security Administration. You can read one of the most respectables ones on Business Week. According to the weekly: “Ultimately our ability to make good on the “Ponzi-like” nature of Social Security depends on the continued march of technological progress“. Essentially what makes it different from the Ponzi scheme is the ‘willingness’ to pay-back, only if technology advances. Kind of scary, since I do not see too many people jumping into the technology careers lately. Most of the young men and women I meet like the soft-ones.
Another prominent news source (CNNFN.COM) argues it is not a Ponzi Scheme because “no one is being misled” and because on ‘real’ Ponzi Schemes “number of potential investors is eventually exhausted“. For some reason I think there is a limit to the number of humans the planet can sustain, and if it wasn’t according to Wikipedia the Replacement Fertility Rate for industrialized countries is barely keeping the population stable in those countries (2.1). As for ‘no-one being misled’, there could be a debate there. The Social Security Administration have sent all of us letters telling us they will be insolvent some time in the future. Yet, Presidential candidates all tried to convince us that they will fix the Social Security and make it right.
Up until now I hadn’t made the comparison. I guess I was too busy working during all of this market collapse and Ponzi Scheme prosecutions to think about it. I guess most people in America are either too busy working to think about it, or are too lazy not-working to think about it. Can’t blame them. I am not yet sure if it is or it isn’t. But so far the arguments against the idea seem weak to me. And since Jim Cramer was right when he predicted when to sell the market, around where it will bottom, and when to start buying again, I am inclining to believe this video clip where he states his idea that yes, the Social Security Administration is the biggest Ponzi Scheme.
Comments
Subscribe
