Wednesday, December 29, 2010
"Promises and Riots"
By Thomas Sowell
"What the first generation got back in benefits was far greater than what they themselves had paid in. It was something for nothing— apparently.
This is the way a Ponzi scheme works, with the first wave of "investors" getting paid with the money paid in by the second wave. But, like Social Security, a Ponzi scheme creates no wealth but only an illusion that cannot last.
That is why Mr. Ponzi was sent to prison. But politicians get re-elected for doing the same thing."
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