Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10 5/3/83 based; site hou2g.UUCP
Path: utzoo!lsuc!watmath!clyde!cbosgd!ihnp4!houxm!hou2g!scott
From: scott@hou2g.UUCP (The Brennan Monster)
Newsgroups: net.politics
Subject: Re: Social Security,Pyramids, Banks and Insurance
Message-ID: <717@hou2g.UUCP>
Date: Tue, 19-Nov-85 10:09:09 EST
Article-I.D.: hou2g.717
Posted: Tue Nov 19 10:09:09 1985
Date-Received: Tue, 26-Nov-85 20:01:45 EST
References: <826@whuxl.UUCP>
Organization: The Sol Cometary Halo
Lines: 22



But Tim, even though SS may not be a strict pyramid scheme
like Amway or chain letters, your analogy still fails.  The
bank can pay you benefits because THEY MAKE MONEY ON THE MONEY
THEY LEND OUT.  In fact, they make more money on these loans
than what they need to pay your investment plus interest.
(Now *that's* Capitalism :-] )  How would the bank be able to
pay you benefits (interest) on your money if they lent out your 
funds at zero interest?

WHERE IS SOCIAL SECURITY CREATING MONEY OUT OF MY INPUT PAYMENTS?

It's true that SS doesn't require ever increasing numbers of people
paying into the system.  But doesn't the continued solvency of the
system then depend on INCREASING PER CAPITA "PAY-INS"?  Isn't this
in fact what has been happening?  I certainly pay more into the
system now than when I first started working.

			Scott J. Berry
			ihnp4!hou2g!scott