Why did Bernie Madoff go to prison? To make it simple, he talked people into investing with him. Trouble was, he didn't invest their money. As time rolled on he simply took the money from the new investors to pay off the old investors. Finally there were too many old investors and not enough money from new investors coming in to keep the payments going.
Next thing you know Madoff is one of the most hated men in America and he is off to jail. Some of you know this but not enough of you.
Madoff did to his investors what the government has been doing to us for over 70 years with Social Security. There is no meaningful difference between the two schemes, except that one was operated by a private individual who is now in jail, and the other is operated by politicians who enjoy perks, privileges and status in spite of their actions.
Do you need a side-by-side comparison here?
Takes money from investors with the promise that the money will be invested and made available to them later.
Takes money from wage earners with the promise that the money will be invested in a "Trust Fund" and made available to them later.
Instead of investing the money Madoff spends it on nice homes in the Hamptons and yachts.
Instead of depositing money in a Trust Fund the politicians use it for general spending and vote buying.
When the time comes to pay the investors back Madoff simply uses some of the new funds from newer investors to pay back the older investors.
When benefits for older investors become due the politicians pay them with money taken from younger and newer wage earners to pay the geezers.
When Madoff's scheme is discovered all hell breaks loose. New investors won't give him any more cash.
When Social Security runs out of money they simply force the taxpayers to send them some more.
Bernie Madoff is in jail. Politicians remain in Washington ..
'The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination. '
- Ronald Reagan
"If you put the federal government in charge of the Sahara Desert , in five
years there?d be a shortage of sand.? Milton Friedman
Buying insurance is fine and smart, and I'm all for it (as a capitalist).
But as is the case with just about everything the government tries to do -- that is, that the results are exactly the opposite of the intended effect -- Social Security won't be coming to most of us who aren't collecting on it already. In other words, the money you have paid into the system which you could have saved or invested elsewhere will be gone and you will get nothing or you will get a token amount.
I'm told i won't receive any "benefits" from SS, but i still pay a lot of money into it... I wish i could opt out and put that money into something of my choosing...
told....? by who
this is an over statement, I'm not saying social security doesn't need fixed but even at the current rate of income and retirement age benefits could be reduced. I don't see social security going away, the people close to retiring are amoing the people who vote the most.
it will either swing the way of the unions where the ounger members get shafted or it will swing the way of increased funding (taxes) or possibly even leaving some high income people out of payments