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ponzi vs. fonzi
September 26th 12:52:25 PM
THE BATTLE BEGINS...
A Ponzi scheme is a type of pyramid scheme named for Charles Ponzi, an Italian immigrant who duped thousands of Americans in the early 1900s. The scam includes paying returns to investors from the money raised from later investors, rather than from profits created by any actual investment.
Our present Social Security system is, technically, a large-scale Ponzi scheme. Incoming payments - your taxes - are neither saved nor invested. Instead, current contributions (from one set of individuals) are used to pay for current retirees (to another set of individuals), just like a Ponzi scheme.
The inherent flaws of this "pay-as-you-go" system is revealed by our changing demographics. Due to declining birth rates and increasing life expectancy, we now have more retirees and fewer workers paying in, and the system is heading for an utter collapse.
Actually, the present SS system is even worse than a Ponzi scheme, because at least Ponzi victims have a right to their losses when/if returned. Workers paying into Social Security have absolutely NO legal claim on their contributions. According to the 1960 U.S. Supreme Court decision in Flemming v. Nestor: the court explicitly ruled that paying into the system does not make receiving benefits a "contractual right". Congress can legally spend our retirement money and never have to give it back!
We NEED personal accounts to save our retirement contributions from (A) a system continually effected by population changes, and (B) to protect our money from a fiscally irresponsible congress.
Evenutally, Ponzi was convicted of fraud and sent to prison for two years. When he came out, he returned to Italy, where he became a top economic adviser to Benito Mussolini.
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On the flipside, Arthur 'Fonzie' Fonzerelli, of the 70's sitcom Happy Days, got all the chicks, wore a leather jacket, rode a motorcycle, and had total control of the rock n' roll jukebox. Fonzi was the absolute epitome of 1950's cool.
Posted by Ursula Williams
Comments
Social Security Equity Funds EQUAL More Big Government Control and Corruption.
S4 Sucks.
Posted by Noid on September 27th 08:43:37 PM
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