What’s the difference between Madoff’s Ponzi scheme and the U.S. Social Security system?
Paul Kasriel of Northern Trust explains:
Both depend, or in the case of Madoff, 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. Madoff 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 how it’s good to be the king.