In today’s National Review Online magazine, Michael Tanner of the Cato Institute clearly explained what I’ve personally felt for years: Social Security is nothing but a Government-backed Ponzi Scheme. Or, I should probably say a Ponzi Scheme enforced at the point of a gun.
Apparently, the political world is going apoplectic over Republican presidential candidate Rick Perry having called a spade a spade on this topic. Since I can’t be bothered to watch everything going on in the disgusting world of politics, I hadn’t heard about it. Now that I have, I actually have some interest in what Mr. Perry has to say.
This paragraph from the article nicely sums up why Social Security is a farce:
Social Security, on the other hand, forces people to invest in it through a mandatory payroll tax. A small portion of that money is used to buy special-issue Treasury bonds that the government will eventually have to repay, but the vast majority of the money you pay in Social Security taxes is not invested in anything. Instead, the money you pay into the system is used to pay benefits to those “early investors” who are retired today. When you retire, you will have to rely on the next generation of workers behind you to pay the taxes that will finance your benefits.
The conclusion is obvious: Perry was absolutely right, and in fact Social Security may even be a bit worse than a Ponzi Scheme since the government can both force new taxpayers to pay more and reduce the benefits paid out. Just because the government does something doesn’t make it legal (or moral, or ethical)…
Besides, if you actually think you will receive something from our soon-to-be-bankrupt country from this program for your retirement, then you must be delirious. Unless worthless politicians actually do something about this problem, everyone from retirees, to current and future taxpayers are all going to be hopelessly screwed (like we aren’t already).
Please go and read the entire article by clicking this link.