What’s a Ponzi Scheme?

The outrage over whether social security is a ponzi scheme is… just silly.  And I think there’s a quick way to end it.  Go dig out your latest social security statement.

Go ahead.

I’ll wait.

Got it?  Now read the front page.  This is the page everyone flips past – it’s filled with a lot of boring words and we want to see how much we’re going to get, which is on page 2.  But page 1 is enlightening.  Column one says the system was not designed as a retirement plan and you should save your own money too.  In column two is the estimated date when the program will be insolvent.

Does it matter what we label it?  Social security as we know it is unsustainable, and the pyramid it’s based on is crumbling.

What?  You don’t have a statement?  Ah…  apparently the social security administration has stopped issuing them due to… wait for it… lack of funds.

(Best part of the video – when Friedman calls Santelli an “idiot.”  That’s what Friedman’s arguments have been reduced to).


About Mystic Cowgirl

I worked overseas in the aid game for longer than I'd like to admit and learned several important things: 1) Third World countries aren't poor because America is rich. They're impoverished due to socialist governments that provide neither rule of law nor basic infrastructures; 2) These socialist governments redistribute wealth from taxpayers to the government workers. There's no benefit to the poor or downtrodden, and certainly not to the general welfare in terms of infrastructure improvements. 3) America is moving toward the Third World model. Rule of law has been subverted because equality under the law is disappearing as special interests carve out exemptions to regulations and special favors under the law. The redistribution of wealth to government began decades ago -- total compensation for government employees now outpaces salaries in the private sector.
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