Pity poor, Rick Perry, the governor has caught tremendous heat as of late for stating the obvious, given his assertion that Social Security is a Ponzi scheme. Well of course its a Ponzi scheme. But for most politicians, rather than confront this reality, it is far easier to demagogue those who challenge the conventional wisdom, given the gross ignorance of the masses
According to the Securities and Exchange Commission (SEC)
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.
In what way is Social Security NOT a ponzi scheme? The system is predicated on the belief that returns are guaranteed, that funds are secure, having been invested in a “lock box” or “trust fund,” while in reality these funds are spent as soon as they come in.
Indeed, without new investors this Social Security fraud would collapse, whereas if those funds were truly being invested in a trust fund, a new investor would not be a prerequisite for continued success. The essential difference between Social Security and a Ponzi scheme is the fact that Ponzi schemes are voluntary, where as Social Security is a scheme forced upon the citizenry through the coercive powers of the federal government.
This government has and continues to perpetrate a fraud on the American people, and worse, still,, though we are aware of the danger, legally there is nothing we can do about and those with legal responsibility, rather than being jailed for what would surely be a crime in the private sector, these individuals are re-elected.
