Social Security vs. Ponzi schemes in one Venn diagram

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Phyllis Newman

New member
So the crutch of their argument is that the government can print money and force all working people with force to pay in.

w2g guys, you really reinforced your argument by stating on the diagram that SS isn't a ponzi scheme
 
It's not a DELIBERATE fraud.




Hay guise, they don't mean it when the money runs out.




I also liked "Is not actually a Ponzi scheme". Thanks for clearing that up
 
the basic crutch of the argument is that social security is fully solvent until like 2032, at which point it will only be able to meet ~80% of its obligations.
 
because you're forced into it from BIRTH with no option to privatize. Also, there is no definition on the money that differentiates it from other tax revenue, so the gov't can spend it how they want.
 
which part? because they both are correct, unless you live in galveston county and are a gov't worker, then you can opt into a private option.

The supreme court case where social security was defended by the central government declared SS as a tax, with no differential earmark on the revenue it took in (Helvering v Davis)
 
Pointing out Social Security's similarities to a Ponzi Scheme irritates Social Security's defenders. Nick Baumann at the liberal Mother Jones created a cute Venn Diagram implying that the only overlap between a Ponzi Scheme and Social Security is that Rick Perry calls them both Ponzi Schemes.

I think Baumann left some things out, so I've created my own diagram:

Yes, Social Security is regressive, as liberals will often point out. You pay 6.75 cents on your first dollar, and probably on your marginal dollar, but the wealthy don't pay FICA on their marginal dollar.

And given that black men have a lower life expectancy, they get shortchanged on the benefits end.

http://campaign2012.washingtonexaminer.com/blogs/its-not-ponzi-scheme-if-you-cant-exit
 
Social Security is just a tax you pay that you see no benefit from.

Period. Looking at it like you are owed something is wrong. It is a tax you pay that goes to someone else.
 
You pay taxes today to support beneficiaries, who in turn paid taxes when they were working. Later when you are a beneficiary, other people will pay taxes to support you.

If you think that your taxes are put into a fund for you to take out later, you're wrong. Social Security was not set up that way.

Social Security is a pay-as-you-go system. It is not a pre-funded retirement system like private pension plans. The only reason there is a trust fund is because of the Baby Boomers (more taxes coming in than benefits going out when they are working, obviously).

Unlike private plans, Congress can cut benefits if there isn't enough money. Private plans can't cut benefits unless they go broke and the PBGC can't fund all of it (pretty rare).

Eventually the govt will have to either cut benefits, raise taxes, or some of both. It isn't a shady ponzi scheme, it's a social program that has some financial challenges but is in no way a ponzi scheme. Rick Perry is an idiot.
 
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