Why Social Security is a Ponzi scheme, and how to fix it

Posted by: Phineas on September 13, 2011 at 1:01 pm

**Posted by Phineas

My blog-buddy ST did a great job yesterday calling out former Governor Romney and Congresswoman Bachmann for their hypocrisy in attacking Governor Perry for calling Social Security a “Ponzi scheme.” As she pointed out, not only have liberals been saying that same thing, but so have Romney and Bachmann. While it’s disappointing, it’s hard for me to work up outrage over this; politics ain’t beanbag, as they say, and primaries in particular seem to lead people to say anything to win. On the other hand, when what they say is dishonest, it needs to be called out.

And this was dishonest.

Anyway, as a follow-on to that post, here’s a video from Dan Mitchell of the Cato Institute showing why Social Security is not only a Ponzi scheme, but also a flat-out terrible deal for current workers, retirees, and especially ethnic minorities. Then Mitchell introduces the way to fix the system — private retirement accounts:

Be sure to read Mitchell’s related post.

The way forward to a stable retirement system is clear, but it will take tremendous efforts to get past the Left’s demagoguery and the fear it engenders.

And we certainly don’t need conservatives adding to it.

RELATED: Well, if demagoguing Social Security wasn’t bad enough, Michele Bachmann may be torpedoing her own campaign by seeming to join the “Jenny McCarthy Anti-Vaccination Club for Kooks.” Even if if she’s only repeating misinformation she heard, it’s still bad. Her campaign needs to get this clarified, fast. See also Moe Lane.

(Crossposted at Public Secrets)

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9 Responses to “Why Social Security is a Ponzi scheme, and how to fix it”

Comments

  1. Paul says:

    Ponzi scheme ? My Grand Mother would call Rick Perry a Communist for saying such a thing…

  2. Susan says:

    Ruling Class Republican Ed Rollins is more than delighted to take out Bachmann-he did say she was ‘third tier’ and ‘not a serious contender’

    Like Obama, she never had a record to run on however rest assure the Ruling Class will torpedo any candiate not part of their own corrupt good old boys palm-greasing crony capitalist club.

  3. Susan says:

    “My Grand Mother”

    Gee Paul, how come you have to rob from Peter to pay for your Grand Mother?

    Don’t you care about your Grand Mother or are you so selfish you want your neighbor to take care of your Grand Mother for you?

  4. Phineas says:

    Susan, did you mean that Rollins was happy to take out Palin, instead of Bachmann? He’s been working for Bachmann until very recently and still has a role with the campaign.

  5. Lorica says:

    Private accounts would be nice as then Maybe, Just Maybe, the Gov will keep there fingers out of our til. – Lorica

  6. Carlos says:

    Keep their fingers out of our till, Lorica? Heck, the government’s entire body takes up most of the till, not just the fingers.

    And it’s not just the Democraps, either. Several of our Repub “leaders” (and nearly all the non-elected Repub “leadership, a.k.a. the RNC) have until their recent “Come to Jesus” moments that will pass just as surely as fall and winter follow summer.

    Since our real chance to fix SS passed by during Bubba’s administration, the only solution now is to suck it up, honer our commitments to those already on SS, up the eligibility age for those 55-60, up it again for those 45-55, and make those under 45 start their own retirement accounts (maybe with a “if you so choose” option, with no safety net for those who “do not so choose.”)

  7. Carlos says:

    Sorry about this: “…he only solution now is to suck it up, honer honor our…”

  8. Paul says:

    My Grand Mother paid her money in as the law required. What the government did with it she had no control over…

  9. Lorica says:

    Well Paul if I had my way, your Grand Mother would only get out what she paid in. That is how is should have worked all along. You pay 27.00, your employer pays 27.00, you get out 54.00. Not 32,000.00, or whatever the 1st SS recipient got. I am going to have well over 200,000.00 in this thing before I can retire at age 70, in 22 years. Who here thinks that I am going to get any of my money out of it?? – Lorica