Saturday, September 10, 2011

Is it a Ponzi scheme?

See Ed Driscoll's article which notes that Rick Perry is not the first to call Social Security a Ponzi scheme.

Shikha Dalmia also points out that in many ways calling Social Security a Ponzi scheme is an insult to Charles Ponzi.

Rhetoric aside, we need to reform Social Security for the long run to:
1) Make sure that, even if there is some "redistribution" among citizens of the same age, overall each generation receives back in benefits only what it paid in to the system, plus interest.
2) Prevent the federal government from using social security contributions to fund other government programs.
3) Encourage savings and investment by all Americans.

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