Is Social Security a Ponzi Scheme? - Robert P. Murphy - Mises Daily

Is Social Security a Ponzi Scheme? - Robert P. Murphy - Mises Daily: It's possible for everyone in the entire community to "live below his means," that is, to consume less than his income and to save. The economy is then physically capable of reducing the output of consumption goods (TVs, sports cars, steak dinners, etc.) and increasing the output of investment or capital goods (drill presses, fertilizer, MRI machines, etc.). In the future, the larger quantities of various tools and equipment make the workers more productive than they otherwise would have been. That's why the standard of living can rise; the community is physically capable of cranking out more goods and services because of the past investments.