re: Social Security - Help me understand better

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"Using new investor funds to pay prior investors" is a key ingredient of a ponzi scheme. How it was "sold" is irrelevant.

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No one who is not trying to villify social security has ever referred to anyone paying into the trust fund as an investor nor any recipient of benefits a prior investor because social security has never been sold, promoted, marketed or otherwise presented to anyone as a financial investment. People paying into the fund are workers and benefit recipients are just that, recipients.

Anyone claiming that social security is an investment knows nothing or is being dishonest. You can sell an investment or stop investing. You can do neither with social security. Social security benefits are backed by the United States Government and as such are about as sure as death and taxes. No investment can make that claim outside of bonds and treasury notes, which can be cashed in at any time or opted out of anytime...so there is that. Social security benefits are also adjusted for inflation....investments are not in any way shape form or fashion. Finally social security benefits are payable as long as you or your spouse lives and ends then, or when your child becomes and adult. You can will an investment to an heir...you can't social security because it ain't an investment.

Not being an investment prevents it fitting the definition of a ponzi scheme. But most people who claim otherwise know this and pretend to think differently or they are ignorant.