Quote:
Originally Posted by goober
The reason the payout is low is because Social Security is an insurance plan, not a savings plan. It provides disability benefits, survivor benefits as well as retirement benefits.
It has the lowest administrative cost load of any pension fund in the world.
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To be precise, it is a Ponzi scheme.
Social Security is a Ponzi scheme.
A woman named
Ida May Fuller , from Ludlow, Vermont was the first recipient of monthly Social Security benefits
Ida May Fuller worked for three years under the Social Security program. The accumulated taxes on her salary during those three years was a total of $24.75. Her initial monthly check was $22.54. During her lifetime (she lived to be a 100) she collected a total of $22,888.92 in Social Security benefits.
The Social Security Act was ostensibly a fund to pay pensions, but it doubled as a hidden tax to fund a Treasury reserve fund for the purpose of cloaking tax increases and higher government spending. "Contributors" to Social Security do not receive the returns from the money they paid into the "fund" in the past. Rather, just as in a Ponzi Scheme, they are paid from the funds of current contributors (taxpayers), and these taxpayers will in turn be paid from the taxes paid by the generation that follows them. In other words, its purpose is the redistribution of income, not investment toward the production of new wealth.