Love Social Security or hate it. Broaden the program or end it. Those decisions I'll leave up to others, but as a consumer reporter well versed in scams, let me assure you Social Security is no Ponzi scheme. That claim has been made since the first Social Security check was mailed out in January 1940. It is a claim that 71 years of history disproves. The Ponzi scheme is named after Charles Ponzi, a self promoter and criminal. He set up a business that paid early investors with money from recent investors, while he was scraping off huge profits for himself. There was no real business, it was simply a criminal enterprise hidden behind layers of lies. Social Security on the other hand was born of the democratic process. It has been debated in public forums and changed many times. Benefits have gone up and benefits have gone down. Payments into the system have risen and fallen too. All of these decisions were made through the democratic process. If as a people we choose to end the program, that too will be a testament to our American belief in democracy. It won't be because Social Security collapsed as a Ponzi scheme.
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Social Security began and was maintained as a stand fund. Under President LBJ the congress started using the money in as part of the general funds and leaving Social Security with IOU's, which now the government can't pay. Had this not been done Social Security would be an EXTREMELY VIABLE fund!
Posted by: Michael Bakkie | 08/30/2011 at 01:30 PM
That something is decided by the democratic process does not make something more right or wrong. One need only look to the history of the world's first democracy, the Athenian state, to see what terrible results there can be of the democratic process. They voted to go to war with Sicily ostensibly to protect an ally but mainly to conquer that land in order to control its immense wealth. Was the murder of innocent Sicilians and the eventual deaths and enslavement of thousands of Athenians when Athens lost that war moral and good because it was decided to go about that war democratically? No, it was a criminal act decided by a minimum of 50%+1 of those voting to go forward with it.
Social Security is rightly referred to as a ponzi scheme. It is a transfer of wealth from the current generation to the older generation which no only did not create enough funds, but used what they paid into it to fund other government programs during their working years. Now the workers of today will not only have to pay back those bonds out of current revenues, but also fund the retirements and medical demands of the baby boomers. It's even worse than a ponzi scheme because it is backed by the police powers of the state and will likely lead to intergenerational political warfare and much unrest.
Posted by: Ken | 09/06/2011 at 11:03 AM
Michael - to expect politicians to ignore a huge pot of money they can use to fund their pet projects and increase their prestige and power is extremely naive. There is no precedent in history for governments to be fiscally responsible for any significant period of time.
Posted by: Ken | 09/06/2011 at 11:05 AM
Good post I have ever viewed!But I think it still have some shortcomings, But it is just my opinion ,depends on you!
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Posted by: Susan Fan | 09/13/2011 at 06:45 PM
Have you ever had a topic to write about that seems too big to tackle that you can’t even begin to write about it? Well, welcome to my world. I need to send educational supplies to Africa. I know! You have so many questions racing through your head right about now. Let’s just say – all of your questions will be answered in due time. For now, listen to my heart and my passion
Posted by: Air Max | 01/14/2012 at 05:21 AM