RSSIs Social Security a Ponzi Scheme?
Gary Varvel
The Indianapolis Star
http://blogs.indystar.com/varvelblog/
© 2008 Creators Syndicate
When federal agents showed up at his apartment in December, Bernard Madoff admitted he had "paid investors with money that wasn’t there," was "broke" and knew "it could not go on." Could we be saying the same thing about Social Security and Medicare in a few years? Let us know what you think by commenting below.
4 Responses to “Is Social Security a Ponzi Scheme?”
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January 12th, 2009 at 6:45 pm
The Social Security “Trust Fund” is just another example of our modern politicians using treats and promises for which they will never be held accountable to garner votes and favors. We are living in a time when Capitalism is being trampled on for the political purposes of the ruling class in Washington DC. Never forget that it is Capitalism and the Constitution that have made our country the shining beacon of progress and prosperity in the world. Never forget those who attempt to destroy American Capitalism. Stand Up, Speak Out, Educate, and Convert! http://www.TheCapitalistParty.com
January 14th, 2009 at 4:59 pm
The Self-Funded Social Security Insurance Program
Franklin Roosevelt established Social Security as a self-funded program to guarantee a retirement benefit for working class American’s.
Social Security receipts are received into the US Treasury-General Fund! This flaw allowed politicians to issued IOU’s to the Social Security Trust Fund for government spending and tax cuts.
Growing Social Security Shortage: In 1983, Ronald Regan and Congress fixed the depleted “Trust Fund” by agreeing to increase Social Security fees on workers and employers, deducting significantly more than what was needed to support the Social Security Trust Fund. This law produced a large surplus, (Not a Ponzi Scheme) to be drawn upon when the baby boomer generation begins retiring in 2008. The plan worked, rolling up large surpluses in the Social Security Trust Fund for twenty-five consecutive years. In 2007 alone, Social Security raised $175 billion more than the program spent!
Robbing Social Security: Once again, these extra Social Security taxes have been treated exactly like income taxes, and spent running government, and on large weapons systems. As a result, after 25 years of paying extra Social Security deductions, millions of workers have nothing to show for it but government IOU’s. By 2017, when the annual Social Security surpluses disappear, two things will happen:
1. Without the hidden subsidy from Social Security, the “True Size” of our federal deficit will become clear.
2. After 25 years of subsidizing the U.S. General Fund with Social Security collections, the flow of money will reverse. The General Fund will be tapped to provide “PREPAID BENEFITS” to baby boomer retirees. This means one of two outcomes:
a. Taxes will have to be increased to pay the IOU’s due Social Security, or
b. PREPAID BENEFITS will be significantly cut to retired baby boomers.
For 25 years Baby Boomers have been paying extra Social Security Taxes to assure Social Security remains solvent, and it has! But now, conservatives want to label Social Security an “Entitlement” and cut the benefit. The only “Social Security Entitlement” is REPAYMENT of the governments IOU’s to the Social Security Trust Fund!
January 14th, 2009 at 5:01 pm
Is Social Security a Ponzi Scheme? Perhaps it adds undue credibility to the name Ponzi, but it surely is a scheme nonethelsss…one destined to failure if things do not change quickly in this country…wish I could say I see THAT happening, but I’m not getting that warm and fuzzy feeling yetl. Are you?
January 14th, 2009 at 9:33 pm
Social Security and Medicare are in huge trouble. Ross has been talking about this for many years. I do not think that these programs can even survive due to our combined debt and the collapse of our manufacturing base. We have to educate as many people as possible in attempt to find solutions.