Posted on 09/10/2011 5:03:02 PM PDT by mandaladon
As NewsBusters previously reported, MSNBC's Chris Matthews on Thursday admitted that Social Security is technically a Ponzi scheme.
Less than 24 hours earlier, in numerous post-debate discussions, the "Hardball" host criticized Republican presidential candidate Rick Perry for saying the same thing (video follows with transcript and commentary):
(Excerpt) Read more at newsbusters.org ...
The media is going to have a hard tome with this because just about everyone has called it a ponzi scheme.....for years!!!!
I never paid much attention to the issue of SS, but now that Perry brought it to national attention, I have been researching the subject and I am more convinced that Perry is right. The big issue though is how to fix it or replace it. I think it will require educating a lot of people.
>>The big issue though is how to fix it or replace it. <<
It cannot be fixed or replaced. It can only be terminated.
Phase it out over 5 or 10 years — to anyone younger than 55 or 60 is has just been a tax.
That is the way I have seen it — SS is $0 in my retirement planning as it should be for anyone with 1/2 a brain 55 or younger.
I’d say the solution is something along the lines of:
Everyone over 55 gets their promised payout. Everyone 50 to 55 (do a January 1st cutoff for ages) gets 80%. People 45 to 50 get 60%. People 40 to 45 years old get 40%. People under 40 get nothing, but also get to phase out their contributions by 20% a year until they pay nothing into it. All non-citizens would be prohibited from collecting, regardless of their age.
Of course, those are rough numbers and I haven’t done the math, but it lets everyone know what’s up and phases out SS altogether for future generations to be self-reliant on their retirement situations, while still protecting the elderly that have paid in for many decades.
Maybe we could even get some kind of an “opt out” one-time payment for disqualifying ourselves from ever collecting at retirement age. I’d take 30 cents on the dollar for what I’ve paid in thus far. The government can keep the other 70% for paying the old folks and I won’t complain about the reduction in purchasing power or the loss of the 70%.
Comments? Other ideas? Better numbers? I welcome it all.
Technically, Social Security is NOT a Ponzi scheme.
People who put money in a Ponzi scheme do so willingly. The law enforcement apparatus of the United States Government, particularly its most feared element, the Internal Revenue Service, coerces people to put money in Social Security.
Or, maybe you want to continue to believe that Social Security is “a compact between generations”.
Bubba talked about fixing SS way back when...and IIRC, he proposed privatizing it...but I don’t remember how it was going to work. I think President Bush opted for just about the same plan and got bush whacked royally by the DEMS!!
Technically, Social Security is NOT a Ponzi scheme.In effect, it's a Ponzi scheme with 100 percent participation. The fact that it's not voluntary participation doesn't change the mechanism.
People who put money in a Ponzi scheme do so willingly.
If you want to end Social Security and lower taxes just eliminate the payroll tax deduction, people will be screaming from the rooftops to end it and lower taxes when they see how much all this is really costing them.
Tingles only thought it was a Ponzi scheme while GWB was President.
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