The US Government Ponzi Scheme & Impending Collapse of Social Security, Medicare, and Medicaid

Abstract

The financial instability from unfunded liabilities threatens the long-term viability of Medicare, Medicaid, and Social Security, demanding urgent reforms. An alternative to Social Security’s tax-spend-borrow model is proposed: Mutual Funds managed independently of the Social Security Administration. Analysis shows that investing 15% of income in mutual funds over 50 years could yield a significantly higher retirement fund compared to Social Security, offering $14,000 monthly versus $1,400. This alternative would foster intergenerational wealth, unlike the current system, which resembles a Ponzi scheme and lacks genuine investment. Despite the Supreme Court’s rulings upholding the constitutionality of Social Security taxes, the broader issue of its constitutionality remains unresolved. The SCOTUS decision in Flemming vs. Nestor (1960) highlights that taxpayers are obligated to contribute to FICA without guaranteed benefits, raising concerns about the program’s fairness and alignment with constitutional principles. Urgent reform is essential to secure financial stability and align with the enumerated functions in the US Constitution: this should be discussed in every business college in our nation.