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Pyramid Scheme September 11, 2011

Posted by Fritz in Yachts and other things that float.
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During the last Republican debate held at the Reagan Library Presidential candidate, Rick Perry, called Social Security a Ponzi scheme. He was immediately challenged by co-hosts Brian Williams and John Harris, Politico’s editor-in-chief. Perry didn’t walk his statement back and held his ground. That of course made for the big next-day buzz on all the liberal media. David J. Lynch of Bloomberg News wrote a typical lefty story playing on one interpretation of the definition of a Ponzi scheme.

Charles Ponzi - 1920

“Experts on both Ponzi schemes and Social Security say Perry is wrong. Mitchell Zuckoff, author of “Ponzi’s Scheme: The True Story of a Financial Legend”, states that “Ponzi schemes are, by definition, fraud. Social Security is above board,” he added. “We can argue about whether it’s a good system. But you can’t call it a fraud.”

Obviously liberals interpret fraud differently than I do. Since we can always increase the amount Social Security takes from every American’s paycheck, we can keep the program solvent—for a time. That time is rapidly approaching. Eventually the number of takers will outstrip the givers and no matter how much we take from the givers it will not cover the takers. Classic Ponzi scheme. But where is the fraud you say? Well, how about in not being honest with the American people that there is an ultimate end game, no matter how much we increase the money input, the program is doomed in its current form.

 Liberals think it’s ok to keep raising the amount we put into the program. Well I say to hell with you! It is not alright. When Social Security began in 1937 it was a 2 percent deduction with 1% paid by the worker and 1% by the employer….and only the first $3000 earned was taxed. Now, after 55 rate increases in 74 years, individuals have 7.65% of the first $106,800 of their earnings taken away (and employers pay an additional 7.65%) into a system that will, by the most conservative of estimates, fail by 2022.

After 2022, trust fund assets will be redeemed in amounts that exceed interest earnings until trust fund reserves are exhausted in 2036, one year earlier than was projected last year. Thereafter, tax income would be sufficient to pay only about three-quarters of scheduled benefits through 2085.

(This paragraph was lifted verbatim from the Social Security and Medicare Boards of Trustees’ A SUMMARY OF THE 2011 ANNUAL REPORTS)

 Rick Perry’s honest assessment of Social Security is the kind of fresh leadership we need.

Sometimes the truth hurts but in the end it will set you free.

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Comments»

1. Anonymous - September 11, 2011

David J. Lynch of Bloomberg News wrote a typical lefty story playing on one interpretation of the definition of a Ponzi scheme.

WHY does “typical lefty story” need to be here? Does that phrase then make THIS a “typical righty article?”

Wishing everyone could leave out all the extra political commentary and stick with the facts. Might get more readers to finish each other’s stories…

just a thought

2. Fritz - September 12, 2011

Why yes! this is a typical ‘righty story’ and you are obviously a liberal. I obviously hit a nerve so my work here is done.


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