Would The Real “Pyramid Scheme” Please Stand Up…
Thursday, July 14th, 2011By now, just about everyone has caught wind of the current Administrations “faux pas” surrounding the a once thought of guarantee of Social Security checks and the possible delay for current benefactors in August.
While the White House is doing some major damage control right now due to the way the media reported it and how the American public perceived the “warning” – it should be noted that the days of Social Security checks are numbered regardless of what Congress can accomplish with the budget and our debt ceiling.
To this day, it’s still odd to me how we find an abundance of pin heads out there that proclaim that Network Marketing is an unsustainable model. Yet, when push comes to shove, nobody has ever been able to provide a single solitary example of one MLM or Network Marketing company that has ever exhausted the world’s population. Heck, you can combine all Direct Sales and MLM companies in the industry and still couldn’t find that last person who didn’t have at least someone to talk to or sell product to.
Idiots who throw this “pyramid scheme” lingo around simply to place the fear of God into others aren’t smart enough to realize that this theory is just that – a theory. The reality of MLM and it’s real world applications are vastly different from their false and very limiting beliefs.
On the contrary, the model has proven its stability and longevity for over a century now. You have the Direct Selling Association (DSA) that was founded in 1910 to protect and serve this industry over the last 100 years. You also have companies like AVON who has been doing business since 1889 still selling and still recruiting women all around the world. Tupperware, Amway, Mary Kay all founded before I was born and just blasting this “fear” about sustainability right out of the water by selling billions of dollars a year.
To add insult to injury, these same pin heads will tell you to go out and get yourself a “real job” – exchanging 40 hours a week of your time for a fixed amount of income.
I don’t know how or why so many in this country became so complacent, lazy and stupid.
The debt ceiling appears to be covering up the real issue of our Social Security system. Nobody seems to be asking the real question of why the money isn’t there for these benefactors. I mean, you hand over 12.4% of your income to be placed in reserve for when you retire – so where is it? Very few understand that this system we’ve all taken for face value (because the Government is supposed to “protect” us) is doing nothing more than paying for the benefactors who retire before you.
In other words: If you want to take a look at a real – practical – and legitimate “pyramid scheme” you need to look no further than our Social Security system.
Back when I first got involved with YTB, Social Security reform had been place at center stage. The Bush administration saw there was a problem and was searching for ideas to address it. We all have short memories, and there are those who want to forget the Bush years. This USA Today piece however pretty much sums up what was going on in that day and age – just six short years ago.
The idea at the time was personal accounts as a way to fix the cash crunch. Money invest in would be reserved for those individuals only. The USA editorial explained perfectly why the current Social Security system is your classic pyramid scheme.
“Given low birth rates and rising life expectancies, in time, Social Security won’t be able to sustain our elderly population without punitively taxing workers.”
It goes on to state:
“For Gen X, though, this program sounds awful. No matter how poor you are, you pay 12.4% of your income, every year, to maintain Mossman’s cash flow.
Sure, Mossman paid in, funding other retirees. Their taxes funded original recipients who didn’t pay a dime. This is the classic definition of a pyramid scheme, which eventually has too many folks to pay off with too few suckers paying in. Thanks to the 1946-64 baby boom, Gen X is firmly in the “too few suckers” bin.”
And we’re right at the cusp of this dreadful reality. For the next 20 years there will be more than 10,000 baby boomers per day looking to retire for the next 20 years. Some 78 million people all “worthy of” a Social Security check because they’ve been “buying in” all these years.
Knowing what you know now – including the current economic climate – what do you think your chances are of seeing even a penny of your “buy in” when you’re ready to retire?
Are you beginning to understand just how silly and irrational this idea of pointing the finger at MLM’s and Network Marketing when a real – practical example like our Social Security system looms over every tax payers head?
That being said – I’m not going to tell you that MLM or Network Marketing is the only answer in solving your issue of Social Security not being there for you when you retire. There are plenty of options to protect you and actually provide a very comfortable retirement. But if you think you can count on Social Security being there for you – dammit – you need to wake up and see the writing on the wall.
A very real and legitimate example of a “Pyramid Scheme” is staring you right in the face – courtesy of the Government that many believe is there to protect them from such evils.
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