When social security first started there were 15 workers paying benefits for every retiree.
Today that ratio is upside down and 2 workers are paying the benefits of 7 retirees and it’s only gonna get worse when the baby boom generation hits 62 years of age and the pool of retirees explodes.
A Ponzi scheme is when you promise a group of investors a return on their investment by giving them back their principal plus interest from the proceeds of the second group investors and repeating the process over and over again. The scheme eventually collapses when the overall pool of investors stops growing and the last people that put their money into the Ponzi scheme gets stiffed and never see a return on their investment.
This is exactly what has happened to the Social Security system with fewer worker paying money for an increasing pool of retirees.
Perry was absolutely right when he said we’d be telling a huge lie to young workers that Social Security would be there for them when they reach retirement age without making changes to the system that will go belly up years before they retire. It’s bold and straightforward language that easily understood and makes the point in a graphic way the Social Security needs to be fixed for the younger generation and beyond.
CBS News
In spite of warnings from his fellow Republicans that calling Social Security a "Ponzi scheme" would be polarizing in the presidential contest, presidential candidate and Texas Gov. Rick Perry on Wednesday stood by his remarks.
"You cannot keep the status quo in place and call it anything other than a Ponzi scheme," Perry said at a Republican debate in California. Acknowledging that several have called his remarks controversial, he added, "Maybe it's time to have some provocative language in this country."
Perry called the popular federal program a Ponzi scheme in his 2010 book "Fed Up!" and his views have come under scrutiny since he entered the presidential race last month. Most recently, Republican strategist Karl Rove said Perry's take on Social Security will prove "toxic" in the 2012 election. Former Vice President Dick Cheney also said recently it was inaccurate to call the program a Ponzi scheme.
More here
It’s impossible to have a frank discussion about anything if conservatives try to live under PC rules of debate. This is where Karl Rove is dead wrong in calling Perry’s remarks “toxic”. That’s the problem with political correctness in the first place because it sets the rules of what can and can’t be said as dictated by the Left. What Karl Rove has to understand is if conservatives try to operate in that in a PC atmosphere, then will lose the argument before it even begins. That’s a lot more unacceptable and self defeating if we’re trying to articulate conservative ideas.
It’s about “free speech”, Karl, not acquiescing to “controlled speech”.
Memeorandum
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