Safehaven | What's the Difference between Maddoff and U.S. Social Security?

March 31, 2009

What's the Difference between Maddoff and U.S. Social Security?
by Paul Kasriel

Coercion. Both depend, or in the case of Maddoff, depended, on being able to get new contributors into the scheme in order to pay off the previous contributors. The Social Security Administration has the power of the law to force new contributors into its scheme. Maddoff did not have the power of the law to force new contributors into his scheme, therefore, he has been accused of breaking the law. Just another example of it's good to be the king.

Paul L. Kasriel, Director of Economic Research
The Northern Trust Company
Economic Research Department
Positive Economic Commentary
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