1 Comment

  1. logitarian
    October 2, 2018 @ 12:33 pm

    Pyramid schemes ultimately fail because the number of new people paying in (the bottom number of the pyramid) can no longer generate enough income to pay the benefits promised to those higher on the pyramid. According to the Social Security Administration (see https://www.ssa.gov/OACT/TR/2012/tr2012.pdf), since the inception of the program in 1935, the number of workers it takes to support an individual beneficiary has risen exponentially. In 1945, the cost to support one recipient was spread over 41 workers; by 2010 the cost per recipient was spread over only 3 workers.

    Mathematically unsustainable.

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