tag:blogger.com,1999:blog-9208928.post3049757985105111310..comments2024-03-28T09:09:30.998-04:00Comments on Start Making Sense: Is Social Security a Ponzi scheme?Daniel Shavirohttp://www.blogger.com/profile/14710628584922961682noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-9208928.post-54406026299272499672011-09-21T15:23:11.674-04:002011-09-21T15:23:11.674-04:00I had read somewhere (can't quite remember whe...I had read somewhere (can't quite remember where now) that the "increased life expectancy" problem is over-stated because the big mover here is not that people are continuing to live much later into old age than they used to; while this is happening, the bigger factor is fewer outliers amongst those who die very young (and hence, never joined the work force to begin with, and thus have a neutral effect on the system). I don't really know too much of the actual economics behind Social Security, so I don't know if this is true, but it sounded plausible when I read it. But thanks for an excellent break-down of the "Ponzi scheme" analogy.Anthonyhttps://www.blogger.com/profile/13252583693919755922noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-44290996367219710952011-09-14T13:53:32.658-04:002011-09-14T13:53:32.658-04:00This is a very useful summary of SS and more or le...This is a very useful summary of SS and more or less rebuts the characterization of SS as a pure Ponzi scheme. But what about one other Ponzi element, which is that the last people in don't get paid anything. What if we decided that the population of the earth was unstustainable and certain countries, such as the US, volunteered to stop reproducing? Wouldn't the last generation to contribute to SS get nothing in that case? Maybe too farfetched, I'll grant, but that seems like a significant ponzi like feature.JPBhttps://www.blogger.com/profile/03049813830369412444noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-77308856455172765162011-09-08T13:06:27.973-04:002011-09-08T13:06:27.973-04:00Excellent points. Perry, of course, doesn't c...Excellent points. Perry, of course, doesn't care that it's not a Ponzi scheme - it's just the sort of simplistic slogan-like language that works exceptionally well with "low-information voters," and he knows it. In a sense, SS and Medicare are victims of their own success - increased life expectancy is due at least in part to a higher standard of living and better medical care these programs have promoted. Even the AARP admits that they will need some adjusting. It doesn't take a rocket scientist to see that 65 isn't the same age in 2011 as it was in 1935, when life expectancy in the US was actually below 65. You do have to wonder, though, how effective Perry's SS-bashing is as a political tactic: it may play very well to his base, but last time I checked seniors like to vote on Election Day.Ellen Livingstonhttps://www.blogger.com/profile/07251092551341512309noreply@blogger.com