With this Madoff business all over the news, we are reminded what a Ponzi scheme is:
The regulators believe that Mr Madoff did not make any investments on his clients' behalf but took cash from new customers to pay the 12 per cent returns he had promised existing clients. Such a scheme is only sustainable so long as there are sufficent new clients entering the scheme. It is believed that Mr Madoff's sons approached regulators before their father had time to change his mind.
Doesn't that describe Social Security?
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