There are Ponzi schemes and there are bigger and worse Ponzi schemes. What is a Ponzi scheme, you ask? Named for Charles Ponzi, an Italian immigrant to the USA. He operated an investment scam in the early 20th century. The scheme is one where past investors are paid with the proceeds from current investors rather than having the money put to work in the capital markets. As long as more people continue to invest with the scam operator, everything operates. But when the flow of new investors dries up, things can crash quickly in a big way, as Bernie Madoff found out.
Shown is Ponzi's mug shot.
Think deeply and carefully now. Doesn't the Social Security system operate pretty much the same way? The government's social security receipts are invested in a special class of federal bond that is not marketable. No one else but the social security folks have access to them. In other words they are like IOUs, written on toilet tissue no less. With the retirement of us baby boomers the sum in the trust fund will soon be going negative instead of positive.
Look up hypocrisy. We will put you in prison if you do this because it will hurt people, but we will do it ourselves.
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