this post was submitted on 08 Apr 2024
58 points (75.4% liked)
Bωockchain
273 readers
1 users here now
crypto skeptical community
bwockchain is not a technology of the future, buttcoin is a scam.
All lemmy.ml instance rules work here.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
He was probably thinking of pension. Pensions do function in a same way ponzi scheme does, it relies on a new generation to bring in enough to pay out for the previous generation.
The problem in this is that when the population keeps getting older (less babies born), the younger gens need to pay more and more to keep up with the older gen. So basically if you decided to have only a 1 child instead of 4, you'd technically make it harder for your kid to provide pension payouts for you. This is why people argue against it.
I personally think pensions (along with most gov welfare) should just be replaced with UBI to vastly simplify the processes at very least, even if it still has the same problem with aging population
No, public pensions don't function like a ponzi scheme. There are actual pension funds that are actively invested and these profits do indeed help cover current and future pension payments. Yes, the government uses current pension payments to pay out receivers. But that's because it would be stupid to take out part of the pension fund, pay the people, and then put in the exact same amount from new payments. Instead you keep a balance sheet of how much was paid in and how much was paid out and the difference is added or deducted from the pension fund.
Yes, there are a few mismanged public pension funds. But they aren't nearly as common as people believe. And even in mismanaged pension funds the situation is still different from a ponzi scheme. Mismanaged pension funds use part of the deparment budget to cover the difference. This comes at the cost of cutting programs or downsizing in other ways. The more mismanaged the fund, the higher the percentage of the budget goes towards it. But that's another reason why they aren't lik a ponzi scheme, because there are different methods of funding them than just the payments of "new members joining".
Most mismanaged pension funds are from the private sector, not from the government. And there most aren't a ponzi scheme either and instead some other form of fraud or just plain old theft.
I still agree with an UBI being a better alternative.
If only they could change the retirement age.
Oh. Wait...
Yes let's retire people at 85
/s