Time For Floridians to Get Real About Social Security
0SHARES
by Lone Shark
There’s been a lot of talk of late regarding Social Security and the federal program’s similarity to a “Ponzi Scheme”, a comparison which I think is unfair to Charles Ponzi. To Ponzi’s credit, at least he had to convince his dupes, I mean his investors, to opt-in to his phony investment schemes.
The U.S. Securities and Exchange Commission defines a Ponzi Scheme as “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors….Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk.”
For me, the main point about Social Security that renders all its other aspects of secondary importance is the fact that the program is COMPULSORY- we don’t have a choice. There’s no need for the Feds to “solicit” new investors- usually within a week of your birth, you’re assigned your Social Security number, and presto, your golden years are secure! Thank You, FDR!
take our poll - story continues below
Do you think the 2nd Amendment will be destroyed by the Biden Administration?(2)
Completing this poll grants you access to Shark Tank updates free of charge. You may opt out at anytime. You also agree to this site's Privacy Policy and Terms of Use.
For the increasing number of folks like me who have looked back over the horizon 75 years ago to the time when the program was originally enacted, we see that it was nothing more than an opportunistic, short-sighted, not to mention unconstitutional mistake made by the program’s advocates. Why should an outmoded retirement program be accepted as a permanent part of the political firmament that is not subject to change and reform?
There’s been a lot of astute commentary and helpful visualizations of late pointing out why the program bears all the hallmarks of a Ponzi Scheme. Paul Ryan even chimed in on the subject and agreed with Governor Rick Perry’s characterization of the Social Security program as a “Ponzi Scheme,” and the use of that term to describe the program has resulted in many Republicans getting their panties in a bunch.
Florida is affectionately known as “God’s Waiting Room,” and there are a great many seniors throughout the state that are receiving Social Security- many of whom could be decades away before their “number is called”, so to speak. As a result, there are a number of Florida politicos who are fearful of incurring the wrath of those seniors and entering into a real debate reforming Social Security, instead opting for traditional Democrat-sounding talking points to criticize those who want that debate.
Several Florida Republicans are already ceding a lot of ground on the matter:
“Social Security is a contract the American people have made with the federal government, the federal government needs to honor this contract.” – Rep. Tom Rooney (R., Fla.)
With all due respect to Congressman Rooney, the American people have not entered into any such contract with the federal government. Franklin Roosevelt and the Democratic Congress of 1935 foisted this program on millions of people, and the program never had any appreciable mandate or support even when it was enacted. There are millions of people who would happily opt-out of this “contract” were they given the ability to do so. Trust the people to make this highly personal decision for themselves, what a novel concept!
And some are muddying the waters on the issue:
“Rick Perry has said that he wants Social Security to go back to the states. Given the challenging budgetary situation many states are already in, his plan could put retirees and near-retirees in an even more precarious position. Would states like Florida have to choose between honoring our promises to seniors and paying for education and public safety?” – Rep. Connie Mack (R., Fla.)
In fairness to Governor Perry, he has not established a position that Social Security should be ended and the States should create their own retirement systems that have authority over our retirement accounts. Perry has called the program as a “Ponzi Scheme” without submitting a detailed reform proposal as of yet.
Millions of people are hoping and waiting for political courage along with real solutions. The best solution for anyone under 55 is to give individuals complete control of their own retirements through the establishment of private accounts- a personalized account that you manage and gives you a property right that you can eventually transfer to your loved ones.
There are number of actuarily sound reforms that can be made to the Social Security program that keep its benefits secure for those 55 and older while giving individuals the ability to opt-out of the program altogether. Those reforms should be focused on reductions to existing government spending that make the existing program solvent. Eventually, new recipients into the program should be means tested, and the age of retirement should be raised.
What is simply unacceptable is to continue to mandate that Americans stay ensared in a loser of an “investment,” which is what Social Security will be for millions of young people- this fact needs to be repeated over and over directly to them. There is no reason why reforms couldn’t be enacted that simultaneously keep the program solvent for existing beneficiaries and yet allow younger workers to opt out of the system and establish their own private accounts.
There are those who are claiming one or more of the following- we can’t scare seniors, Democrats will relentlessly demagogue the issue, seniors can’t handle the truth, now is not the time and place for this debate, blah blah blah. If not now, when?
Quite the contrary- the best time to put Social Security up for debate in the court of public opinion- along with the eight decades of incremental socialism that is squeezing the lifeblood out of this nation is best done now, in the presence of Socialism’s biggest Messiah who is desperately attempting to consign the fate of our country to its false promises.
Time For Floridians to Get Real About Social Security
by Lone Shark
The U.S. Securities and Exchange Commission defines a Ponzi Scheme as “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors….Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk.”
For me, the main point about Social Security that renders all its other aspects of secondary importance is the fact that the program is COMPULSORY- we don’t have a choice. There’s no need for the Feds to “solicit” new investors- usually within a week of your birth, you’re assigned your Social Security number, and presto, your golden years are secure! Thank You, FDR!
Do you think the 2nd Amendment will be destroyed by the Biden Administration?(2)
For the increasing number of folks like me who have looked back over the horizon 75 years ago to the time when the program was originally enacted, we see that it was nothing more than an opportunistic, short-sighted, not to mention unconstitutional mistake made by the program’s advocates. Why should an outmoded retirement program be accepted as a permanent part of the political firmament that is not subject to change and reform?
There’s been a lot of astute commentary and helpful visualizations of late pointing out why the program bears all the hallmarks of a Ponzi Scheme. Paul Ryan even chimed in on the subject and agreed with Governor Rick Perry’s characterization of the Social Security program as a “Ponzi Scheme,” and the use of that term to describe the program has resulted in many Republicans getting their panties in a bunch.
Florida is affectionately known as “God’s Waiting Room,” and there are a great many seniors throughout the state that are receiving Social Security- many of whom could be decades away before their “number is called”, so to speak. As a result, there are a number of Florida politicos who are fearful of incurring the wrath of those seniors and entering into a real debate reforming Social Security, instead opting for traditional Democrat-sounding talking points to criticize those who want that debate.
Several Florida Republicans are already ceding a lot of ground on the matter:
With all due respect to Congressman Rooney, the American people have not entered into any such contract with the federal government. Franklin Roosevelt and the Democratic Congress of 1935 foisted this program on millions of people, and the program never had any appreciable mandate or support even when it was enacted. There are millions of people who would happily opt-out of this “contract” were they given the ability to do so. Trust the people to make this highly personal decision for themselves, what a novel concept!
And some are muddying the waters on the issue:In fairness to Governor Perry, he has not established a position that Social Security should be ended and the States should create their own retirement systems that have authority over our retirement accounts. Perry has called the program as a “Ponzi Scheme” without submitting a detailed reform proposal as of yet.
Millions of people are hoping and waiting for political courage along with real solutions. The best solution for anyone under 55 is to give individuals complete control of their own retirements through the establishment of private accounts- a personalized account that you manage and gives you a property right that you can eventually transfer to your loved ones.
There are number of actuarily sound reforms that can be made to the Social Security program that keep its benefits secure for those 55 and older while giving individuals the ability to opt-out of the program altogether. Those reforms should be focused on reductions to existing government spending that make the existing program solvent. Eventually, new recipients into the program should be means tested, and the age of retirement should be raised.
What is simply unacceptable is to continue to mandate that Americans stay ensared in a loser of an “investment,” which is what Social Security will be for millions of young people- this fact needs to be repeated over and over directly to them. There is no reason why reforms couldn’t be enacted that simultaneously keep the program solvent for existing beneficiaries and yet allow younger workers to opt out of the system and establish their own private accounts.There are those who are claiming one or more of the following- we can’t scare seniors, Democrats will relentlessly demagogue the issue, seniors can’t handle the truth, now is not the time and place for this debate, blah blah blah. If not now, when?
Quite the contrary- the best time to put Social Security up for debate in the court of public opinion- along with the eight decades of incremental socialism that is squeezing the lifeblood out of this nation is best done now, in the presence of Socialism’s biggest Messiah who is desperately attempting to consign the fate of our country to its false promises.