Social Security
Submitted by kevink on Sun, 02/17/2013 - 12:45in
It's apparently a controversial thing to say SS is a Ponzi scheme. I don't understand why though because wasn't that how it was set up? The young would pay for the old but when the young grew old, the next generation of young people would pay for them.
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That's not how it was
That's not how it was originally set up, no. But it is what its become. Originally, it went into a dedicated fund to be drawn on by those who paid into it. Then the Govt decided that they could use it for other purposes and drained that account, so now its become a Ponzi scheme.
Blessings )o(
Addendum - there was NEVER a "dedicated' fund.
It was always "general revenue."
The government even made this argument themselves while trying to defend its constitutionality.
See the court case I mentioned below.
Yes it WAS set up that way. But it was SOLD to the people
as "insurance" or a "savings account."
At the same time they were arguing to the people that it was insurance or savings, they were arguing to the courts that it wasn't. That's because government run mandatory insurance or forced savings is unconstitutional.
There are other threads here on DP about this. Do a DP search for Helvering v. Davis.
Don't forget the gov't has
Don't forget the gov't has been writing out IOU's to itself and then declaring them as assets for SS.
This piece of dishonest accounting makes it appear that there is something where there is nothing.
SS is a great example of "the road to hell is paved with good intentions."
Simple Facts and Plain Arguments
A common sense take on politics and current events.
http://simplefactsplainarguments.blogspot.com
That raises another question though
Were the intentions really good to begin with?
the road to hell
I made that same comment on a yahoo article about gun control, and got down voted by the typical yahoo readers.
So, I'll pay it forward by UP voting your comment! :-)
People on Yahoo are typically
People on Yahoo are typically Yahoos themselves, I must say. Good job fighting the good fight, though. It's a stiff crowd over there.
Simple Facts and Plain Arguments
A common sense take on politics and current events.
http://simplefactsplainarguments.blogspot.com
Yes, it's a textbook Ponzi
Yes, it's a textbook Ponzi scheme. You may find this article interesting:
http://simplefactsplainarguments.blogspot.com/2013/01/social...
Simple Facts and Plain Arguments
A common sense take on politics and current events.
http://simplefactsplainarguments.blogspot.com