Krugman: Spend Now, Save Later

[HappySqurriel]

Final-Fan said:

HappySqurriel said:
In what way is Social Security any different than a Ponzie Scheme?

Does Social Security promise huge returns that necessitate unrealistic continuous growth in the payer base vs. the payout clientele the way a Ponzi scheme does? 

While most Ponzi Schemes are marketed with the expectations of unrealistic returns with little or no risk, a Ponzi scheme only requires a system where existing investors are paid out through funds contributed from new investors. With that said, being that Social Security will collapse long before someone in their 20s or 30s will retire, any claim of return from Social Security could be considered an unrealistic return.