Is Social Security a Ponzi Scheme?

Yes.

Here is the technical debate:

A Ponzi Scheme is technically illegal because the law prohibits its use.

http://www.sec.gov/answers/ponzi.htm

Here is the reality of how a LEGAL ponzi scheme works:

Social Security is legal Ponzi scheme developed by (the democrats) in 1935.

Further details: Answered this 7 months ago:

http://answers.yahoo.com/question/index;_ylt=ArJne...

Now, I know this sounds controversial, but the principle of having new investors (workers) pay greater benefit to (SS recipients) than they actually contributed is, in effect meets the basic definition of a ponzi scheme. But it is a LEGAL scheme. Since it's legal, maybe it can't be called a "scheme."

According to the U.S. Securities and Exchange Commission (SEC):

"the Ponzi scheme continues to work on the "rob-Peter-to-pay-Paul" principle, as money from new investors is used to pay off earlier investors until the whole scheme collapses."

http://www.sec.gov/answers/ponzi.htm

One could also argue that the "rob-Peter-to-pay-Paul" principle, is how the government runs it's operation with the FED buying treasuries because the market hardly might even exists otherwise.

And waiting for that ponzi to collapse? Here is the when if we don't get a handle on the deficit spending:

$10 Trillion and Counting (watch PBS documentary on line)

http://www.pbs.org/wgbh/pages/frontline/tentrillio...

No.

Not yet. I see it more like an insurance. We work and pay into it for protection in our old age.

I'm not sure if any insurance failures are deemed Ponzi schemes, however, when the company or government almost seem to encourage the demise of the insurance, then it seems like a Ponzi scheme.

So many people speak of the impending collapse of Social Security that it make me wonder if the goverment on some level is growing to accept this and isn't trying to prevent the collapse. It seems that way.

Yes.

The definition of a Ponzi scheme is collecting money from one party and giving it to another with the hopes that your pool of people to collect FROM is always increasing. Take a look at the policy when it was first implemented with the Baby Boom generation. The money is collected, not invested, and given to old/injured people.

No

OASDI is insurance. People with claims get paid from the contributions of all. Insurance is not a Ponzi scheme.

No. As long as the u.s. has a growing population, they can keep paying retirees. Maybe at a reduced benefit level, but they will continue to pay.

Secondly (and this is a big one), the u.s. government has a printing press. They (the govt), can literally mint money. Hence social security will never go broke.

No

Ponzi Scheme is done with intent. Social Security was not built with the intent to defraud. It can be fixed so it doesn't do so.