| > It's a Ponzi scheme when it's not sustainable. That's such a general and undeveloped affirmation that you probably don't even believe it yourself. Here is the real definition from Wikipedia: > is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Pension systems are not a fraud. If you believe so, we do not live in the same reality. Taxpayers and pensioners are not investors. They are people who want to live a descent life. Not everything should be viewed as a financial market. Reducing everything in life into a spreadsheet makes you believe in fairy tales. People end up believing they are going to become millionaires by investing their hard earn dollars into actual Ponzi schemes like bitcoins and the like. Rich countries are producing many times more than what they need. There is plenty for everyone to go around, they just need to organize themselves a little better. |
I was simply using "ponzi scheme" in the more casual, euphemistic sense of "skeevy unsustainable scheme that will screw people over".
And like I said, I don't believe all pension schemes to be dishonest/poorly executed. Some are just fine. But many are sloppy and poorly managed. A few are even so poorly managed to an extent that I'd say it borders on fraud, if not legally, at least morally. (I don't think that's common, necessarily; I think most mismanaged pension plans are entered into with the best of intentions.)
> Taxpayers and pensioners are not investors. They are people who want to live a descent life.
I'm not blaming them. They're victims of this poor management.
https://www.pewtrusts.org/en/research-and-analysis/issue-bri...
This article paints a rosy outlook. And indeed, it's good news overall. But 35 state pensions meeting their goals means that 15 aren't. That's worth criticism.