Private retirement accounts would beat the pants off of Social Security
You’ve heard it’s a “Ponzi scheme.” It is. President Johnson, in trying to build support for his Medicare proposal, tried to make it look like more money was available in the Social Security Trust Fund than was really the case by switching its accounting from an endowment-type fund that would pay out benefits from returns on the massive capital held in the account to a pay-go system. With the pay-go system, Johnson began to liquidate the Trust Fund’s holdings and use them for current benefits–ironically increasing future liabilities within one entitlement program in order to create political support for a new one.
Ever since, Social Security benefits payments have been made to retirees using revenues from current workers–an inter-generational wealth transfer and the very definition of a Ponzi scheme.