"A Point About Social Security"

The New Editor | "Will someone please explain to me how this is an effective system? The average salary in the country is around $44,000 a year; at a 12.4% tax rate, that's about $5,000 a year that goes into the program. Assuming that rate of contribution for 40 years, how is it possible that someone could think that the average recipient getting less than $1,000 a month is an acceptable return?" -- More at The New Editor Over at Econopundit they ask, "What am I missing?" and then adds: "The scandal is that these returns are based on a Ponzi scheme: people who paid in very little get a great return because "new [investors']" money is given to them." More... at Econopundit