That's why we need immigration policies that let us keep enough working age people in the country
I think it is more likely that the attempt to try and cover Social Security shortfalls by importing labor will backfire, and that the new citizens will vote against paying more to cover retirement expenses for Boomers and Gen-X.
Because they'd like a similar system to take care of them in their old age, same as if they'd been born here? Why are you adding race into it as if the economic factor weren't the primary driver? If participants in the system have access to the benefits, in the future, why should they care about ethnic disparities between the current workforce and the cohort of retired people?
Your argument is that people of differing ethnic identity cam't have or perceive common or mutual economic interests.
http://www.politifact.com/florida/statements/2014/sep/24/car...
Which is exactly what is happening now with the lopsided ratio of retirees and new incoming workers.
They seem to have marked the assertion as "False" based off of really semantic technicalities
Read up on it, it's a lot more interesting than the "it's going broke!!" stuff makes it out to be.
That future probably wasn't terribly obvious to the politicians who created them (given that most public pension plans were created roughly between World War I and a bit after World War II).
In fact, based on some of the literature of the time (eg The Population Bomb -- https://en.wikipedia.org/wiki/The_Population_Bomb -- etc.) I'd say it's more like people were fearing the reverse.
http://www.pewresearch.org/fact-tank/2016/04/25/millennials-...
This is terrible legalistic reasoning. It essentially says the government cannot create a Ponzi scheme because Ponzi schemes are by definition illegal and governments define what is legal.
Better reasoning would incorporate the government's indirect control of inflation, direct control of federal wages and ability to "restructure" social security benefits and taxes, as well as the fact that the economy grows in real terms. This reasoning is more complex, but it is behind why investing in a start-up that plans to go public isn't a Ponzi scheme.
-There are no promises of huge returns
-The inner workings of the program are public knowledge
-There is no fundamental demographic or mathematical reason the system (a pretty straight-ahead social insurance program involving a certain amount of wealth transfer) should ever become insolvent, assuming the political will exists to keep it running.
Seriously, just google "is social security a pyramid scheme".
You'll find a LOT of breathless articles from personal blogs and sites like World Net Daily calling it a pyramid scheme.
You'll also find a lot of, for lack of a better way to put it, content of actual substance that describes how it's not a pyramid scheme, but a sustainable government program that's worked out just fine for decades (with regular adjustments, as all human endeavors need).
A ponzi scheme is quite different. You pretend to invest an initial investor's money. The returns to that investor are paid out of money coming in from later investors.
Social security works in this way. The money paid into social security is not invested at all. The returns from social security (money going out to current retirees) come entirely from new investments (money going in from current workers). This is the basic definition of a ponzi scheme. It is a sustainable ponzi scheme so long as taxes collected from current workers exceed benefits paid out to current retirees. The designers of this system did not count on two things: (a) ever increasing life expectancy and (b) the baby boom. The former has increased the length of time each person collects benefits and the latter has resulted in a demographic bulge that is now hitting its retirement years.
Thank you Mr. Bismarck![0]
[0] https://en.wikipedia.org/wiki/Otto_von_Bismarck#Old_Age_and_...
I understand the comparison to Ponzi schemes, but I consider these comparisons rather hyperbolic. The intent of a pay-as-you-go pension never is fraud. There are some definite problems with pay-as-you-go systems, especially now due to the fertility decline in the West, but the issues do not stem from pure malice.
A ponzi scheme has an intent to defraud. That's why they're illegal.
Social security has no intent to defraud. It's not "legal cause the gubmint says so," it's legal because it's not a fraudulent money-making scheme designed to enrich the leader.
Social Security and other pay-as-you-go schemes aim to reduce poverty, especially elderly poverty. By this measure, it has succeeded quite well (http://www.nber.org/bah/summer04/w10466.html), and the probable reason pay as you go was chosen I imagine was to provide immediate benefit (recall this scheme was launched during the Great Depression). I would consider it radical (and would want one to provide considerable justification) if one wanted to ditch Social Security entirely.
A better debate in my mind, of course, would be whether to phase Social Security into a fully funded model versus pay-as-you-go model. I can buy that kind of argument, a fully funded retirement scheme is more secure than a PAYGO type.
But even as it stands, the current Social Security gap doesn't sound like a complete disaster. Part of it actually is because Social Security is not completely pay as you go -- Congress raised payroll taxes in 1983 in part to cover this gap (http://www.pewresearch.org/fact-tank/2015/08/18/5-facts-abou...). Part of it is because we have some variables to play with -- raising the retirement age or raising the payroll tax cap, for instance. Medicare actually sounds like its in worse shape at this moment.