Of course it failed…its a Ponzi scheme. The whole fundamental premise behind how it was setup to collect and payout money was extremely flawed. The problem is … you cant touch it. This is why none of our big problems will ever get fixed.
If you were to describe Ponzi scheme to someone who didn’t know what the term meant (like in an entry level economics class), you could give the numbers from Social Security, but don’t say it is Social Security and it would be the perfect desccription.
That is true, but in a typical Ponzi scheme the schemer can’t force people to participate by paying in more money. The money being paid out today is being paid by workers today. Soon, it will require the debt owed to the system by the government and, in about 10-12 years, that won’t be enough to meet statutory obligations.
I haven’t seen any numbers on these proposals, but I suspect that the plan is to not increase future payouts to those taxed on higher incomes. That would make their plan just an added income tax, similar to IRMAA for Medicare.