http://www.mises.org/story/2586
What If Social Security Were Completely Scrapped?
By D.W. MacKenzie
Posted on 6/18/2007
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Social Security transfers income between generations. It does nothing to promote capital accumulation through saving, because it does not involve saving. It is true that some American, especially the earliest recipients of benefits, have gained a low positive rate of return on Social Security. However, this is only possible because other Americans, especially those presently under 30, can expect a negative rate of return. In other words, Social Security is a Ponzi scheme, contrary to what its defenders claim.
Yet Social Security is an odd type of Ponzi scheme. In the original Ponzi scheme, those who got in early enough made a high rate of return.
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Where no one wins!
It is supposed to protect the poor, yet it’s well documented that it discriminates against the poor. It transfers wealth from poor black men to rich white women.
But, worst of all, it robs wealth from all of us.
Only the gooferment, the politicians, and its workers gain.
Sigh, how stupid are we?
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Reinke Faces Life 