Robik Wrote:I am not going to claim that SS is ponzi scheme (though similarities are striking), but the fact is, that it can work only as long as there are enough new people that join the system or someone has to pay the difference.As someone that couldn't collect SS for another 3-4 decades, it really does feel like a ponzi scheme because I feel more certain as time goes on that it won't be there when I'm older. Yet, I still feel like the idea behind the system would work if the govt. didn't pull the money out and use it for whatever pet project (read: war); they have. If you were putting money away in Roth or mutual fund for retirement, you wouldn't turn around and spend it on a new F-ing car because you wanted it. If you saved it like you are suppose to then you can make reasonable guesses on the interest/gains you will get over time.
And paying pensions by increasing the debt is really only kicking the can down the road and not a solution. Postponing the inevitable is what politicians do most of the time, because their focus is to the next election, not decades in the future. Who can blame them though? Would voters vote in politicians with painful but necessary policy proposals? Yes, but history teaches us, that everything must be in shambles before that happen.
Maybe my logic on the SS system is flawed, but I always saw the mechanics of the SS system as a forced mutual fund system. I'm pretty sure the govt. doesn't invest it like that, but that's how it should work to a certain extent.
Either way, its not going to be just the old people that screwed over though; the youth will be screwed in their own unique way as well. With no SS system in place when they retire and the way that wages have stagnated, most won't have any way to retire when they hit 60. Hell, there are a lot of people that are retirement age now that can't retire fully because they don't have the money (this makes it hard for younger people to move up in their career as a result). Something major will definitely have to happen though for there to be huge changes.
