[quote=meadandale][quote=davelj]
The term “Ponzi Scheme” is thrown around an awful lot these days, and generally in an incorrect context.[/quote]
Social Security is definitely a ponzi scheme.[/quote]
Actually, Social Security also falls into the “ponzi-like” category. But it’s definitely NOT actually a true ponzi scheme. Why? Because the US Government has the power to (1) tax US citizens to make up any shortfall in the program, and/or (2) reduce benefits for those receiving them.
The operator of a classic Ponzi Scheme does not have the legal authority to force people to continue to fund the scheme or force “investors” to accept a reduced payout.
So, Social Security and Medicare have ponzi-like elements, but are not true ponzi schemes.
