Firenze Sage: Krugman vs Krugman [Social Security a Ponzi?]
Is Social Security a Ponzi? Krugman’s view 15 yrs ago and now.
Krugman says now:
” It’s true that Social Security is mainly a system in which each generation pays for the previous generation’s retirement, in the expectation that it will receive the same treatment from the next generation. So there’s nothing Ponziesque at all.
Fifteen (15) years ago, Krugman said:
Social Security is structured from the point of view of the recipients as if it were an ordinary retirement plan: what you get out depends on what you put in. So it does not look like a re-distributionist scheme. In practice it has turned out to be strongly re- distributionist, but only because of its Ponzi game aspect, in which each generation takes more out than it put in. Well, the Ponzi game will soon be over….
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Why does anyone bother reading this guy. He feels no compunction about making definitive claims in opposition to themselves depending on the party in power.
