Letter: It’s not a Ponzi scheme

Letter: It’s not a Ponzi scheme

In a Ponzi scheme, investors, unwittingly, are paid from new investors, since the initial investors’ money was stolen. When there are no more new investors, withdrawals cease, and investors lose everything. Social Security is an income transfer from working people to retired people. There is no “unwittingly” — the income, outgo, and rules are clearly defined. A national social security system, with stable demographics, can remain solvent, even w…