Wash. Times' Miller Falsely Claims Social Security "Is A Ponzi Scheme"
Blog ››› ››› MEDIA MATTERS STAFF
In her September 13 Washington Times column titled, "It is a Ponzi scheme," senior opinions editor Emily Miller wrote:
Texas governor [Rick Perry] is under attack for telling the unpleasant truth. At the GOP debate in Florida on Monday, CNN's Wolf Blitzer asked presidential contender Rick Perry whether he was changing his tune after other Republicans and pundits slammed him for saying Social Security is a "Ponzi scheme." The Lone Star State chief executive stood his ground: "It has been called a Ponzi scheme by many people long before me."
Mr. Perry is correct in his assessment, but Republicans shouldn't waste air time arguing semantics.
As the [SEC] defines the practice, "Ponzi-scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk." That's exactly what the Social Security law does when it guarantees seniors the full amount in benefits, no matter what happens with the markets.
The SEC adds, "With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue." Thanks to the baby boomers hitting retirement, Social Security has more retirees receiving benefits than workers needed to meet payments. Consequently, Social Security was in the red last year - $49 billion more than came into the fund.
A Ponzi scheme always collapses. The question is whether the American people will elect a president who has the courage to rebuild FDR's Ponzi scheme into something that can last.