From: Richard Arsinow <richard.arsinow@rauland.com>
Subject: RE: Some Facts.
I too have been concerned about the possibility of bias in the summaries. Thank you, Ridgeway, for stating it so eloquently and pointing out the value of objective reporting.
Some lawmakers, having not participated in this forum, will receive only these summaries from ADSS. 'Text bites' such as "A Fellow of the Society of Actuaries debunked the Ponzi scheme attack...[and]...stated that...to analogize the funds to a Ponzi scheme is false..." without any reporting of the differing viewpoints which have also been expressed will certainly leave the wrong impression with these lawmakers.
The actuary was, in a narrow sense, comparing the soundness of the Treasury securities which 'back' SS benefits with the source of the promised returns from Ponzi schemes, which have no trust funds and depend on a rapidly and ever-increasing stream of new entrants. He was not at all looking at the overall system and the rate of return it provides early entrants versus the rate of return it provides late entrants as the rate of new entry declines. Without focusing on the trust fund, when the overall system is viewed in this way, its Ponzi-like characteristics become quite apparent. Those who read only the summaries will never see this, but rather will get the message that an 'authority' has 'debunked' any comparison to Ponzi.
Thank you, Ridgeway. Please continue to contribute.
