"The beauty of social insurance is that it is actuarially unsound. Everyone who reaches retirement age is given benefit privileges that far exceed anything he has paid in . . How is it possible? It stems from the fact that the national product is growing at a compound interest rate and can be expected to do so for as far ahead as the eye cannot see. . . A growing nation is the greatest Ponzi game ever contrived."PAUL SAMUELSON (1967)
FROM: "Is Social Security a Ponzi Scheme?" by Alex Tabarrok, September 10, 2011.
No comments:
Post a Comment