Medicare is another dangerous hybrid model, of a variant classic Ponzi scheme design. The government directly executes federal Ponzi operational Phase-II, by utilizing multi-millions of conscripted Medicare stake holders. Moreover, this socialistic and immoral wealth transfer scheme will yield a fraudulent and cruel outcome for Americans. Please consider the following contrast between Medicare and a genuine private health insurance company.
The executive board of directors for private insurance has fiduciary responsibility to keep premiums charged vs. benefits paid within a carefully managed balance, while permitting a reasonable return for company stock holders. Medicare is not a true bona fide insurance business. Consequently; such fiduciary governance is flagrantly absent from Medicare, which is controlled by political whims of retiree beneficiaries. Instead; Medicare is a sham government health plan, which is always politically mismanaged, unbounded and unconstrained.
Therefore; seniors have paid insufficient Medicare investments or premiums, to support and justify their actual medical health and prescription drug benefits. Consequently, seniors lean upon younger workers to keep their perceived entitled benefits coming. This backwards lean is the very Ponzi aspect of the debacle and because the youngest group has no one to lean upon; hence they will be defrauded.
The Medicare scheme's complete circular evolution is simple to understand. However; the game's behemoth scale and circumference is incredibly vast. Consequently all players are blind, clueless and oblivious regarding their personal contributions toward collapse and bankruptcy of Medicare. As a result, such players hold fast to their staked game positions while remaining confident of no personal wrong doing. All such players focus instead on maximizing the money or benefits, which the wonderful Medicare program can yield.
Most recipients believe they can have the best of care. By ECON-101 principals; since supply is plentiful and Medicare 'insurance' pays very well, the medical field responds by raising prices through the roof. As a result, Medicare recipients then lobby congress and insist on better benefits. Consequently, our congress moves to assure reliable votes, by granting their MC-Ponzi demands.
With accolades and much news coverage, congress and the president take their usual gratuity from happy seniors; in the form of voter reward at the poles. The same pleased seniors also reward the AARP, with a big boost in membership and Medicare related sales. As new Medicare benefits are made public, the medical field races to offer expensive new services; while exuberantly raising the prices of previous goods and services. Meanwhile; a great profit bonanza is made by powerful medical field and AARP lobbyists.
Consequently and once again; the wonderful MediPonzi balloon makes another revolution, as every stakeholder receives a bigger piece of federal pie. Acutely aware of their SSucker fate, young workers are nervously watching the great globe ponderously rotate. Such young Americans are getting very apprehensive, that in the game's end; there won’t be enough ‘pumpers’ remaining, for them to have a great Ponzi ride.
Meanwhile, the Medicare balloon continues to swell insidiously and ominously. Individually, MediPonzi game players are relatively benign; but when multi-millions act in concert, the ultimate net result will be an apocalyptic financial outcome. Following complete rupture, when surface tension reaches the bursting point; Medicare shall have a grievous outcome for America.
Upon violent rupture of such an enormous financial balloon, retiree stakeholders in the MediPonzi game will be cast unexpectedly, crudely and without mercy into the dirt; of all fifty states and territorial possessions of the United States.
That's when the blame and finger pointing will rage in Washington; while the socialists scamper like rats, to cover the trails of their guilt. Other corrupt socialistic government policies took down the former Soviet Union. So what makes the USA immune to such foolhardiness?
But who will never obtain a chance, to play the wonderful MediPonzi perpetual money game? Regretfully, young Americans will still be pumping, with all of their might; when the Medicare balloon "pops".
Virtual Ferris Wheels
Both Social Security and Medicare can be considered, as truly massive virtual machines. Moreover; visualize these imaginary designs, as gigantic pedal powered Ferris wheels, which have seats for several hundred millions of retirees.
Originally, the great wheels spun rapidly and caused much glee for the few retirees aboard. But as the years have passed, more retirees have taken seats; while leaving fewer young workers to pedal. As a vain dream, their design was flawed by Ponzi scheme engineering. Consequently; the speed of virtual rotation has already begun to slow, as friction losses consume the remaining energy.
Moreover; young workers will continue to pedal with all of their might, but their valiant efforts will be in vain. Such good Americans will be the ultimate losers, who will never get their retirement ride. They will be the children, grandchildren and great grandchildren of the Boomers, who were born after about 1965. Tasting very sweet until functional collapse, other socialistic schemes have historically been followed by grief, anger and rioting.
Although not classic Ponzi schemes, such federal designs are the grandest and greatest functional Ponzi Operations on Earth. As these virtual Ferris wheels grind to a complete halt, American workers will experience catastrophic financial damage. Moreover; retirees will be forced to jump from such virtual dream machines and hope that someone has mercy upon them, in their old age.