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Simply put, in the Social Security program funds are contributed by the working people and are used by people who have retired. The kitty, so to say, is being constantly replenished as is also being used. Thus Social Security is largely a pay-as-you-go program.
To take the discussion further it is essential to know what a ponzi scheme is. (meaning of a) Literally speaking, a ponzi scheme is a fraud or a con. The element of deception prevalent in the scheme makes it illegal. In a ponzi scheme the participants or investors are told that their money is being invested in high return yielding real or financial investments. In reality, their money is not invested but is pocketed by the conman running the Ponzi scheme.
The ponzi scheme promises returns that are far higher than the market rate. This high rate, which is too good to be true, in itself, should put doubts in the minds of the customer. However gullible investors do fall prey to such ponzi schemes. The earlier investors are paid off by the money contributed by fresh or new investors which keeps the scheme going (MacEwan 2009). In order to remain viable, a Ponzi scheme has to grow rapidly. In fact, the scheme would require double the number of investors/participants after every round of payouts.
Let us now shift focus on Social Security. (description of the relevant properties of x) The Social Security program has a mode of financing and functioning and functioning which is pretty much similar to that of a ponzi scheme. However, the distinguishing factor is the intent. The purpose of Social Security is to give at least a subsistence income to the disabled, retirees, their dependents and underage survivors of deceased workers. (any member x of a must have the property p)
Social Security consists of four separate trust funds namely the Old Age and Survivors Insurance (OASI) Trust Fund, the Disability Insurance (DI) Trust Fund, the Hospital
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Protection is provided against the various social problems like unemployment, disability, poverty, orphans and old age. UK is the one of the developed nation of the world where standard of living is high and government is involved in such activities which ensures social security of its citizens.
The author explains that Markopolos reported to the SEC that Madoff was running the biggest Ponzi scheme in the history. Still, it took a long time to assess for the authorities to verify that it was a Ponzi scheme. It was one of the most cold-blooded, deliberately devised and implemented Ponzi scheme.
Many large private investors, sophisticated bankers, hedge funds, charitable institutions, and others have been severely impacted by the Madoff’s fraud (Gregoriou & Lhabitant, 2009a). The former director of National Association of Securities Dealers Automated Quotation System (NASDAQ), had been “pretending to operate a hedge fund that turned to be an immense house of cards” (Cherry & Wong, 2009, p.369).
This particular paper would precisely lay emphasis on how and why these crimes are mostly committed with specific motive on every example that is potentially stated in this parenthetical thesis. We would take note and account for the every aspect that links the crime to its target and seek out all factors for instance cultural, economic or even personal to make sure that the crime committed was a repercussion of any act that preceded the earlier actions of the criminal as well as the victim.
Social security can be described as an insurance program that accommodates the old, survivors and persons with disabilities. It is funded by a dedicated payroll tax from the citizens. Debates articulate this subject due to challenges with funding the program.
A high unemployment rate is a signal that a country is not healthy, and hence is not operating at its potential.
An economy is said to be fully employed when the number of job seekers equals the number of job vacancies. In other words, members of the labor force who really want a job have one.
The essay discusses the Social Security program, that is most notable in the US. It is stated that approximately two-thirds of the American population aged 62 and above depend heavily on Social Security payments for their incomes, with one among five of them depending solely on the payment as a source of livelihood.
Payroll taxes that comprise Federal Insurance Contributions Tax Act (FICA) and Self Employed Contributions Act (SECA) fund the US Social Security Program (Graebner, 2009). The taxes that contribute towards the social security program are collected
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