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Social security Ponzi scheme
1. Social insurance refers to the non-profit social security system with income redistribution function that the state participates in in order to prevent and force most members of society. Social insurance is a social and economic system that provides income or compensation for those who lose their ability to work, are temporarily unemployed or suffer losses due to health reasons.
2. Ponzi scheme is synonymous with investment fraud in financial field. Is the ancestor of pyramid selling. Many illegal pyramid schemes use this trick to collect money. This trick was invented by a speculator named Charles Ponzi. Ponzi scheme is also called "robbing Peter to pay Paul" and "empty gloves and white wolves" in China. In short, it is to use the money of new investors to pay interest and short-term returns to old investors, so as to create the illusion of making money and then defraud more investment.
Social insurance is initiated and implemented by the government, not for profit, and the government takes full responsibility, which determines that it will not make the insured lose money. Even the savings from unemployment insurance will be paid to eligible unemployed people as a social security fund.
So social security and Ponzi scheme are not the same concept at all.
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