Is Social Security a 'Ponzi Scheme'?

Tuesday, September 13, 2011

Texas governor and GOP presidential hopeful Rick Perry branded Social Security a "Ponzi scheme" and "a monstrous lie" during last week's Republican debate in California. Traditionally, Social Security is usually a topic candidates shy away from, out of fear of losing the support of elderly voters. Perry's fellow candidates used his statements as ammunition against him during last night's Tea Party-sponsored debate.

Teresa Ghilarducci, Bernard L. and Irene Schwartz Chair of economic policy analysis at the New School for Social Research and author of "When I'm Sixty-Four: The Plot Against Pensions and the Plan to Save Them," and Alison Fraser, director of the Heritage Foundation's Roe Center for Economic Policy, sound off over whether it's time to overhaul Social Security.

Comments [1]

listener

After nearly three years of Obama's seductive platitudes and false promises it is a bit shocking but refreshing for a major candidate to tell the truth about a sacred cow in our culture. Isn't that what separates a politician from a statesman?

The knee jerk reaction by many is that rather than make difficult political choices now it is better to ignore reality and defame those who alert us to the problem until the moment of truth arrives and Social Security and Medicare go broke. These entitlements require reform in the 21st Century and Perry is correct to make it an issue.

The main difference between Social Security and a Ponzi scheme is that nobody was legally compelled to give money to Bernie Madoff and when the money ran out Mr. Madoff could not raise taxes or print money.

Sep. 13 2011 09:21 AM

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