Quote:
Originally Posted by Delgar
Ponzi scheme is indeed too strong of a term, but only because CPP is not a fraud. There are are parallels however.
The reason CPP is properly funded is because the relative contributions for those currently working have been increased proportionately, while those retired are the ones getting the benefit. In the proverbial robbing Peter-to-pay-Paul story, Peter is paying Paul via CPP, but it is transparently happening, and the government is planning to pay Peter from the workers how come next. It is about one generation paying for the one after it. That has parallels to a Ponzi scheme if the system collapses on itself.
Edit: I just checked, and the unfunded liabilities for CPP is close to One Trillion Dollars. That is very much like a Ponzi scheme.
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Since I don't have to pay into it, I wonder if I should just stop, as I have a feeling I will never get anything out of it... however that comes about.