Thursday, September 15, 2011

The Republi-CON 'Social Security is a Ponzi Scheme' Myth

UPDATE II: "NO PONZI scheme in the history of the world has ever lasted 75 years. Ponzi schemes depend on garnering an ever-increasing pool of new investors to pay out returns to prior investors. When the potential pool of new investors runs dry, they collapse. This will occur when the scheme runs up against the natural limits of its recruitment strategy; in the ultimate case, it can't keep going past the point where the entire population is already subscribed.

This should provide us with a hint as to why . . . Social Security is not a Ponzi scheme. The entire population of working Americans has already been subscribed to Social Security for decades, yet the system continues to pay out benefits on time. That is because the actuarial calculations underlying its revenues and benefits are sound.

Read The Economist, Social Security, A monstrous truth.

UPDATE: "All this talk about it being a 'monstrous lie' or 'a Ponzi scheme' or 'broken' is meant to create a crisis to clear the way for radical changes in Social Security. But if folks want to make radical changes to Social Security, they should just make the argument for their proposed fixes. And good luck to them. But in reality, what’s going to happen is that sometime in the next decade or so, Republicans and Democrats are going to compromise on a package that adjusts Social Security by about 0.7 percent of GDP over the next 75 years." Read the Washington Post, The boring truth about Social Security.

From the Mother Jones, A Venn Diagram for Rick Perry: Social Security Is Not a Ponzi Scheme:

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