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URL:  http://boards.fool.com/ltlti-read-a-quote-by-an-economist-the-other-29156166.aspx

Subject:  Re: Social Security and US Debt Date:  3/8/2011  1:32 PM
Author:  SeattlePioneer Number:  5253 of 5267

<<I read a quote by an economist the other day that said: "Social Security has been a pyramid scheme from the beginning. Those who paid in first received money from those who paid in second--and so on, generation after generation. This was great so long as the small generation when Social Security began was being supported by larger generations resulting from the baby boom. But, like all pyramid schemes, the whole thing is in big trouble once the pyramid stops growing. When the baby boomers retire, that will be the moment of truth--or of more artful lies. Just like Enron." -Thomas Sowell>>



Conservatives have been pointing out that Social Security is a Ponzi scheme since it began. It has only survived because of repated tax inc reases and bailouts.

Of course, Democrats have denied that their program was a Ponzi scheme. Just a few years ago Teddy Kennedy and the Democrats pointed with pride at how their program would be solvent for the next sixty years when George Bush proposed to give Gen X, Y and Z ownership of a small portion of their tax payments.


Means test Social Security? It's already means tested in a variety of ways.

I propose NO changes in Social Security. No tax increases, no benefit cuts. Let the spending expand by spending down the "trust fund" just as Democrats proposed.

Of course, if Gen X, Y and Z combine politically to scrap Social Security in favor of a program they would have ownership over, they are entitled to do that, and I'd be glad to support it.



Seattle Pioneer
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