This article was published by the McAlvany Intelligence Advisor on Monday, October 19, 2015:
In its apologetic over Social Security, the New York Times saw the most significant problem facing the scheme, according to the program’s chief actuary, Stephen Goss, is “that fewer workers are paying taxes into the program … while more retirees are collecting their checks.”
And thus it has always been: every Ponzi scheme fails when “new” investors cannot be recruited into it in sufficient numbers to pay off the “older” ones. The only reason Social Security has survived for so long – it just turned 80 this year – is because of guns and badges and threats.
Charles Ponzi had no such power. He had to rely on ignorance and greed. His scheme ran for more than a year before the fraud was discovered and he was jailed. His shtick?