Why Social Security Is Not a Ponzi Scheme
When Social Security’s trustees issued their recent report on the financial health of the program, they said the trust funds that support Social Security were on track to run out of money by 2033. Absent a change in the law, when those trust funds empty, benefits will be cut by about 23%. That fact, combined with the reality that Social Security operates largely on a model whereby today’s workers pay the costs of today’s retirees, leads many people to call it a Ponzi scheme. Such an accusation is tempting to make: Yes, Social Security is pay-as-you-go, and yes, it’s not currently in a perpetually sustainable state. But…Read More
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