Social Security Is A Government Sponsored Ponzi Scheme

In today's Better Wealth Breakdown, Dan and I discuss a concept in the book “Managing Foundations and Charitable Trusts” by Roger Silk that Social Security is a Government Sponsored Ponzi Scheme. Listen as Dan and I dive into the history of Social Security, how it was established, the seven reasons why it is like a ponzi scheme, the three reasons why it is different and what the future of social security might look like in the future. Social Security is like a Ponzi Schemes for these 7 components; 1.) great investment for early investors, 2.) it pays existing investors using funds from new investors 3.) Lack of easy transparency 4.) mis application of investor funds 5.) funds invested with a related party 6.) the related party is unlikely to ever pay the funds back in real terms and 7.) no outside audit. However, it is different for these three reasons 1.) The sponsor, the U.S. government, can and does compel people to pay into it 2.) The sponsor, the U.S. government, has the ability to simply print the money to pay the benefits and finally 3.) The sponsor, the U.S. government, can and does change the rules in the middle of the game. Listen as we discuss the differences of contributions and taxes with social security, unfunded liabilities, how it works for the future.

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BetterWealth

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Caleb Guilliams

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[dakotadak]

"Potential" of it running out. You two are so kind, but I love it. Great video guys.

[galupproperties]

Love the video guys! I’m currently 28 buying rental properties and maxing my Roth IRA. People need to make sure they invest at a young age. The most interesting aspect to this is people who are currently collecting don’t realize our population is actually aging and shrinking. We have 40 year low child birth rate and a population that is living well past the contributions.

[MrSleepyhead]

Social Security provides extremely underwhelming benefits that we have to pay for or do ourselves anyways.

No way to opt out of it unless you want to be homeless or have a specific job like being a pastor

[knowthyself-org]

Why doesn't this have more views? This is the problem. Nobody knows anything about this

[efrain]

What resources do you guys use to find out if a company, organization, or government department is running a Ponzi scheme or not? Also great video.

[mikobay]

Guys look up Income Related Monthly Adjustment Amount (IRMAA), this is a surcharge on Medicare premiums. Once IRMAA is applied to you by the SSA not only are all of your SS payments possibly subject to those premiums you could end up writing a check quarterly to the SSA to cover excess premiums above what your SS payment provides. If you're interested in learning more let me know.

[nwhite]

Great content!! I learned a lot.. appreciate you sharing!

[jroysdon]

4 things will be done: increase the early/full retirement ages. decrease benefits, increase taxes, "print" more fiat to meet liabilities (with the risk of inflation, which is the silent tax and a win for decreasing debts owed). The will never decrease spending. If you give a mouse a cookie, he wants the cookie jar.

[thesecondvariety]

You could say that social security is a Ponzi scheme except the collector pays the investor back. So not really a Ponzi scheme. More like insurance.