Social Security

Bernard Madoff's mugshot

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Social Security is not a Ponzi scheme. There are some superficial similarities, but the differences are substantial. If you want to read about a real Ponzi scheme, there are several books about Bernie Madoff. I recommend No One Would Listen by Harry Markopolos.

In a true Ponzi scheme, a crook takes money for his/her own use while promising investors a high rate of return. The scheme will collapse if steadily increasing amounts are not invested by increasing numbers of investors. Social Security is administered by the Federal government, which is not a crook, and it is administered at a low overhead cost for the benefit of retirees, not for the benefit of the US government.

I am a Social Security recipient and I hope that it will be there for my son who is now 29 years old. I tell my younger friends that they will determine if Social Security will still be there when they retire at age 70 or thereabouts. If they believe that it will still be there for them, they will elect members of Congress who will ensure that Social Security survives. If they do not, they will elect members of Congress who will ensure that it does not survive. The choice is theirs.

Contrary to false information on Fox and other like sources, Social Security is solvent and likely to stay that way for the next 75 years with some small adjustments. Medicare and Medicaid are the two programs facing more immediate problems, and that is because they address health care costs, not retirement income. The only connection between Social Security and Medicare/Medicaid is that the elderly use both programs.

Please see No One Would Listen | Double Social Security