When texas gov rick perry, then in the early stages of his short-lived quest for the republican presidential nomination, referred to social security as a ponzi scheme, he was excoriated by the. What makes this nonsense become fraud is the insinuation that calling social security a ponzi scheme means advocating that people who are depending on social security be abandoned and left with. Charles ponzi, namesake of the scheme that has since taken many forms when social security's trustees issued their recent report on the financial health of the program, they said the trust funds. That distinction - the stability of social security - is the most obvious argument against social security being a ponzi scheme the social security administration has been in continuous. Social security a ponzi scheme, named after the infamous con-man charles ponzi, is a pyramid scheme variant the way it works is a con-man proclaiming himself to be a financial wizard promises great fixed returns to investors.
A ponzi scheme is a purposeful investment swindle in which early investors are paid off with money put up by later investors in order to encourage more investors. Social security as it is set up today is close enough to a ponzi scheme for government work that can be changed, but we have to have the will to do so let's hope that not just perry can decide. But in any case, social security is not a ponzi scheme, meaning a fraudulent investment vehicle with a nonexistent investment strategy, which usually collapses within a few years. Retirees may be attached to social security, but it's an unfair system that takes advantage of america's children, larry kotlikoff argues, and will leave them with a $23 trillion bill.
Texas governor rick perry is being criticized for calling social security a ponzi scheme even mitt romney is reportedly preparing to attack him for holding such a radical view. So, now you can see for these reasons, that i do not consider social security to be a ponzi scheme i feel it is an insult to the memory of charles ponzi, a criminal, cheat and crook, to compare the more abusive and lame-brained social security system, to his particular fraud. Texas gov rick perry's provocative comparison of social security to a ponzi scheme ignores key differences between charles ponzi's infamous swindle and america's social insurance program.
Social security: just a ponzi scheme what is a ponzi scheme the ponzi scheme is named after charles ponzi, who in 1920 was charged with more than 80 counts of mail fraud and was found guilty of. Social security is exactly like a ponzi scheme in the way it operates just pull out the negative sounding words from the inflammatory definition picked nd it fits well it has relied on new members to pay off the older members as it continues. The largest ponzi scheme in history is run by the us government and it's called social security now i'm not one of those people who wants to privatize social security or thinks it's definitely. For example, like a ponzi scheme, social security does not actually save or invest any of a participant's payments when a worker pays taxes into the system, that money is used to pay current. As governor perry runs for president, he has referred to social security as a ponzi scheme this has scared some and made others question the systems long term viability.
Critics of social security have called it a ponzi schemethey argue that the program is functioning only because current workers pay into it, thus giving the government the money to pay the benefits for current retirees. Understanding a social security system before we delve deeper into the criticism about social security vs ponzi scheme, it is very important to comprehend the basics of the social security system. Ponzi ponzi ponzi there, i said it to the extent people believe there are trust funds with their names on them, social security is absolutely a ponzi scheme so is medicare people need to. In the past several months as the debate over social security reform has taken center stage in the theater of the absurd that is modern american politics, the idea has been floated that the entire. By this definition, social security is a ponzi scheme — and so are the private investment accounts that many conservatives propose as an alternative to social security.
Lawmakers, candidates and columnists who support cutting social security benefits and/or privatizing the program often claim that social security is a ponzi scheme the history and facts about ponzi schemes demonstrates that the accusation is absurd. No ponzi scheme in the history of the world has ever lasted 75 years ponzi schemes depend on garnering an ever-increasing pool of new investors to pay out returns to prior investors. Actually social security is worse than a ponzi scheme, in that it is pyramidal in counting on a population growth base to fund the retiring higher echelons, but when the population/contributors. Pyramid scheme alert directly answers this question, and provides the reasons why social security is not a ponzi and has nothing to do with a ponzi this is not a matter of opinion, but factual evidence and math.
The difference between social security and a ponzi scheme is the difference between making a withdrawal from a bank and robbing a bank ponzi schemes and social security both transfer funds from later investors to earlier ones.