No. of Recommendations: 4
<<The very first beneficiary made out like a bandit:

The fact that Ida May Fuller "made out like a bandit" does NOT make it a Ponzi scheme. If you live to 104, YOU will make out like a bandit. The person who dies on their 62nd birthday after having paid in for years will make nothing. That's insurance, no different than you paying your homeowners insurance your whole life without a claim, or conversely, paying in on Tuesday and having your house burn down on Wednesday.

No insurance plan offers to pay you a fixed annuity, and then increases it repeatedly over the years and adds a comprhensive medical care benefit to that as well. The increases in benefits promised have come from the pockets of current workers, not the people receiving benefits.

You can keep calling it insurance if you like, but you can't show me any similar actual insurance plan. And that's because you are paying out enormously more in benefits than people have paid in.

The people receiving that huge benefit are the people in the early stages of the Ponzi scheme. Social Security and Medicare survive only because the government lines up new generations of gullible fools and extracts ever more tax money from them whether they like it or not.

If Gen X, Y and Z compel government to free them from paying taxes into that system, it collapses almost immedietely, like any Ponzi scheme.

So calling it insurance doesn't make it so.

Seattle Pioneer
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