My question is what did Rooosevelt do with the money? It was my understanding the moeny was held separetly until LBJ and then sucked into the general fund. If that's true, all this yelling about Roosevelt's ponzi scheme is false and hysterical.
If it's not true, I welcome facts to the contrary and will stand corrected.
I stand by my previous analysis whether the SSI money is held in a separate fund or not. FWIW, I believe your recollection is correct. But in my mind that doesn’t cleanse the scheme of Ponzi-ness.
Is that not an admission that "Social Security" is a fraud?
If we are going to give people money to ensure that they live at some sort of subsistence level, let's call it what it is: WELFARE or Government Assistance (to dress it up a bit). I can appreciate that this was required at the time and is today.
However, if we are going to pay (invest?) into a fund, based on our earnings, and then receive a fixed amount in return, and my money is being taken to pay non investors, then that is a scam and not a securing of my social future.
I would favor a solution along the lines of:
1)Grandfather in all current investors under the program, the way it is (to do otherwise is political suicide.
2) New Investors can sign up to a tiered system. A portion goes to keep the above program alive, and a second portion goes into an individual fund where your return on investment is based on your earnings and the return gained on those earnings (no cap).
3) After a period of time (25-30 years?) The amount used by new investors to pay off the old investors would be decreased.
4) Eventually (50 years or more?) -- All investors would be funded based on their earnings and their investments.
NOTE: rules and guidelines for investment would be required and would be monitored by local banks or investment firms (I know, this is where many would dispute the appropriateness of this plan).