Social Security

A Ponzi scheme is essentially a crooked clothement funds operation, which is designed to compensate investors from some other investors gold, and non from unfeigned profits earned by the organization. Ponzi schemes generally attract modern investors by presenting returns other investments cannot guarantee. Promised returns inevitably dissipate when there is not enough money to pay off previous investors. Critics of amicable protection repeatedly argue that it is actually a Ponzi scheme, and that a retirement system similar to Chiles would be more suitable.
Critics argue that Ponzi schemes and Social gage have comparable structures, but the only difference between the two seems to hold up in their transparencies. Ponzi schemes only generate returns with new investors, whereas Social Security returns are supported by tax revenue and lodge in made on Treasury bonds. In many aspects the boilers suit structure of the Social Security system clearly matchs a Ponzi scheme. there are multiple aspects of Social Security that resemble a Ponzi scheme. The three main aspects that are argued include the circumstance that there is no investment, earlier investors win big, and contributors depend upon the recruiting of other contributors who collect lower returns.




That first aspect of Social Security that resembles a Ponzi scheme is that it does not save or invest any of the contributors money. Social Security is exclusively a transfer of wealth from existing workers to present retirees. There is no clear connection between benefits received and taxes paid. The money used to pay out present recipients comes from taxes being contributed by the worker into the system. Social Securitys failure to introduce an adequate cash flow is a result from magnanimous out more benefits than it takes in, via taxes. Each dollar received in Social Security taxes is consumed by paying benefits. There is no remaining money allocated for investment. Social security is clearly a transfer program, which fosters consumption...If you want to get a full essay, order of magnitude it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .