Must Read

PrintPrint CiteCite
Style: MLAAPAChicago Close


The Economist: Pensions, Ponzis and Pyramids

September 24, 2011


The Economist discusses the problems of U.S. social security, when shrinking generations are responsible to produce tax revenues to pay the benefits of future pensioners.

In olden days it was quite common for families to keep a store of spare cash in a cake tin or cookie jar to save for future expenditure, such as Christmas presents. Just occasionally this petty-cash fund had to be tapped for immediate needs, and raiders would ease their consciences by leaving an IOU for the requisite sum.

One way of viewing the American Social Security Trust fund is as a massive cookie jar filled with IOUs. The assets of the fund are Treasury bonds, in other words promises to pay by the federal government. The scheme is thus dependent on the ability of future taxpayers to keep funding it.

Full Text of Document

More on This Topic


Retirement Will Kill You

Author: Peter R. Orszag

Peter Orszag explains that employment, in and of itself, may provide health benefits in the form of decreased rates of depression, increased...


Women, Aging, and Economic Growth

Author: Michael W. Hodin
Huffington Post

Michael W. Hodin argues that President Obama missed an opportunity at the G20 meeting to show the world how the lessons from America's...


2012 Graduates: You'll Live Long, Now Prosper

Author: Michael W. Hodin
Huffington Post

Michael W. Hodin says today's graduates are facing an unprecedented era of aging populations that will force them to rethink what it means to...