A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors.
That's precisely how Social Security operates...most Americans think they are getting back what they "paid in" - they are not. Perry is correct...he could have been much clearer in defending himself, though, in explaining this definition and pointing out the fact this is precisely how Social Security operates.
Bumping both of your posts.