Ponzi Schemes vs. Social Security

Cal Thomas

Ponzi Schemes vs. Social Security

There is much talk about Ponzi schemes and Social Security. Rick Perry started a firestorm by using the term. What is a Ponzi scheme?

The World English Dictionary defines it this way: "A fraudulent investment operation that pays quick returns using money from subsequent contributors rather than profit.”

Isn’t that what Social Security does? It takes money from working taxpayers and gives it to retirees. It rests on the premise that future workers will then be taxed to pay for future retirees.

As Herman Cain noted in Monday’s GOP debate, there are alternatives and we should pursue them. City workers in Galveston, Texas, are allowed to opt out of Social Security and create private accounts, the interest from which pays them double what they would get from the government’s retirement program. Isn’t double better than what we have now? And it’s their money. Chile has a similar system.

This is all about government control. Liberals have used Social Security to addict people to government as ultimate caretaker. Let us keep our money, invest it and take care of ourselves.

I’m Cal Thomas in Washington.

Publication date: September 14, 2011

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