CTL, OK call it an unitended Ponzi scheme. In the original 1934 (?) version, SS was, indeed, intended to pay out from funds derived from interest on investments in obligations. The problem arose when the obligations in which the SS fund was invested was mostly T Bills which meant that the government was using SS contributions as general funds, I.E. borrowing from itself. Once SS started having to pay benefits from later contributions, it became a pyramid scheme. Like all such multi layer schemes, as long as the base of the pyramid keep s growing, everything is cool. The problem that SS is facing is that the number of younger contributors is shrinking while the number of folks receiving benefits is growing. If the SS fund was a real fund as it was sold as, that would be a lesser problem. The fact is, though, that the benefits being paid come directly from the contribution of those working and paying. That’s the very definition of a pyramid scheme, intentional or not.
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