Lars Larson: Social Security IS a Ponzi scheme

by Lars Larson

Well, I’ve heard my latest argument about why Social Security isn’t a Ponzi scheme, and I don’t buy it.

I thought Rick Perry, Governor of Texas and running for president, was absolutely bold when he announced, during a debate, that Social Security is a Ponzi scheme.

Someone needed to tie a bell around this particular cat. I’ve been saying it’s a Ponzi scheme for the better part of 15 years. Why? Because, it suckers people in and uses the money from the new suckers to pay the old suckers. In the case of Social Security, they actually sucker you in and get you to pay for 30 or 40 or 50 years before you collect a dime.

There is a way to fix it. But first, you need to say that the thing is broken. It doesn’t just need fixing – it needs replacing. That does not mean withholding benefits from any of the current retirees, but it does mean that simply raising taxes and paying more money into a busted criminal scheme is not the way to get it done.

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