Paul Ryan, the GOP-TeaParty’s pseudo budget intellectual, came out on Tuesday in support of the GOP’s Texas Governor, Rick Perry, claim that Social Security is a “ponzi scheme”. Indeed, Ryan went on to say that Social Security fits the technical definition of a Ponzi scheme and “It’s not a criminal enterprise, but it’s a pay-as-you-go system, where earlier investors — or say, taxpayers — get a positive rate of return, and the most recent investors — or taxpayers — get a negative rate of return,” he said. “That is how those schemes work.”
Ryan is utterly clueless and so is Perry. That these idiots have been given any vestige of power is dangerous to America.
Let’s just start with the Securities and Exchange Commission’s definition of a “ponzi scheme”, namely:
“A Ponzi scheme is 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. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.”
Does this describe Social Security? Hell, No. For a start, employees’ contributions do not disappear into the “organizers’ pockets”. Whatever comes in is used to pay current outgoing and the remainder is loaned to the U.S. Government, where it is SECURED by U.S. Government Bonds that are backed by the full faith and credit of the U.S. Government. Under the U.S. Constitution, the Government can never default on that debt.
If they are talking about the possibility of the recipients of Social Security not getting what they are promised, the idiot Congressman and the equally stupid Governor should know that the solution for that potential issue is in the hands of Congress. They can easily remove the cap on Social Security deductions from income and make the Social Security program solvent for ever. It’s as simple as that. There’s no need to cut benefits or increase the retirement age; just remove the caps.
What is more troubling is that these idiots, who are in positions of power, can make such stupid comments. Are they truly that ignorant, or worse, are they just spouting this crap for political reasons; to set up a political agenda, while using senior citizens and potential Social Security recipients as pawns in that political game?
These two extremist Conservative idiots have no place in Government.
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