A Way Out

Source: American Institute for Economic Research
by Antony Davies

“‘Saving’ Social Security is a fool’s errand because it can’t be saved. People who were above retirement age when the program began received retirement benefits even though they had never paid into the system. This made Social Security a Ponzi scheme rather than a savings plan. Ponzis end when they run out of new investors to pay off the old investors. And, as with all Ponzi schemes, extending Social Security’s life doesn’t make the insolvency go away. It just shifts the insolvency to a future generation where it will be an even bigger problem than it is now. The only way to escape from a Ponzi scheme is to shut it down. We don’t need a fix for Social Security. We need a way out. And it turns out that there is a way out.” (09/08/22)