27 Mar 2025 4:19 pm
The way we look at SS has to change with the times.Vegas » Yesterday, 3:52 pm » wrote: ↑ Ponzi SchemeVs Social Security
Ponzi SchemeSocial Security
- Money from new investors is used to pay returns to earlier investors
- Eventually collapses when there aren’t enough new investors
- Not backed by actual investments
Yes, it would appear to meet the criteria of a Ponzi scheme. The biggest difference is that when the government does it, it is legal. So, what is the solution?
- Taxes from current workers are used to pay benefits to current retirees
- Faces financial strain when there aren’t enough workers to support retirees
- Trust fund is invested in government bonds, but there are no private investments
Well, some say to raise the retirement age, increase payroll taxes, left the payroll tax cap, reduce benefits for higher earners, and index benefits more slowly.
These solutions suck ^^^.
My idea:
1. Privatizing SS is an option. In fact, it may be the only viable option. It has a lot of problems that go along with it, but I think the benefits of privatization ultimately outweigh the current and future option.
Or
2. Cap off who can take it out. I doubt Bill Gates needs a social security check. Yes, he paid into it, thus he has a right to it, but seriously? We already do a form of this anyway with welfare. We pay money into the state for welfare benefits. However, we can't collect on it unless we qualify for it. Why not the same idea for the ultra-rich?
Back when it was introduced not as many people lived long enough to collect everything they put into the system
Yes there are many who don't really need to collect SS but how do you take that away from those who expect to collect...?
Payments to the wealthy has to be phased out gradually over the course of at least a generation.
Payments to those who have contributed NOTHING need to be stopped too.