Re: Big purple digit

In message <ddfr-C2AD68.09271323042008@[EMAIL PROTECTED]
>, David 
Friedman <ddfr@[EMAIL PROTECTED]
> writes
>It wouldn't be an issue at all if Social Security had been set up on an
>actuarially sound basis, with participants, on average, getting out a
>sum with the same present value as what they put in. It's only because
>it was done as a pyramid scheme that the failure of the population to
>grow fast enough is a problem.
>

It isn't really an investment based scheme or a pyramid scheme. It works 
more as a pay-as-you-go scheme. As long as the tax income and the 
expenditure balance it can carry on indefinitely. AIUI there may need to 
be either a small increase in tax or a cut in benefits eventually in 
order to keep the account in balance.
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