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Labor Day Weekend
September 02nd 09:02:04 PM
This labor day weekend, if you want to mix things up a bit at a party (be honest with yourself- 3 day weekends = lots of opportunities for it...!)I would encourage you to try building a social-security-ponzi-scheme-human-pyramid. Pictured below are some S4 members building a pyramid.
 Our Social Security system is often called a Ponzi scheme because it models so closely what Italian immigrant, Charles Ponzi, set up back in 1916...a so-called "investment" system, where he would take money from initial investors, promising to invest it, but was really just duping them out of their money in a sort of "rob-Peter-to-pay-Paul" principle. As the next picture demonstrates, this method is unsustainable.
 Our S4 human pyramid was beginning to crumble. Social Security is like this - it initially paid huge returns to early collectors. But, as the Cato Institute points out in one of their articles, "Social security does not make any real investments - it just takes money from later "investors", or taxpayers, to pay benefits to earlier, now retired, taxpayers. Like Ponzi, Social Security will not be able to recruit new "investors" fast enough to continue paying promised benefits to previous investors."
Thru our own human-pyramid-building-labor-day-weekend-fun, we can show that Social Security is eventually going to collapse, just like Ponzi's scheme. So go on, have fun this weekend, and while you're at it, build some human pyramids and advocate for Social Security reform!
Posted by Evan Dent
Comments
I will crush you if you don't support personal accounts!
Posted by Brendan Steinhauser on September 02nd 09:49:10 PM
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