social security ponzi scheme

Is Social Security a Ponzi scheme?

by Staff | November 18th, 2011

Social Security could be considered a Ponzi scheme in three major ways, according to GazetteXtra.com.

(1) The payment of purported returns to existing investors from funds contributed by new investors’ is the Securities and Exchange Commission’s (SEC) definition of a Ponzi scheme.

Does Social Security fit this definition? It pays benefits from funds contributed by younger workers…

(2) Ponzi schemes “require a consistent flow of money from new investors,” says the SEC.

Does Social Security do the same? Benefits enjoyed by beneficiaries are dependent upon contemporaneous payroll tax revenue.

(3) “In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors,” SEC states.

Supporters of the current structure seek new Social Security taxes on workers earning more than $106,800.

Defenders of Social Security claim that it is not a Ponzi scheme. They say that there are major differences.

(1) Social Security is mandatory, while Ponzi schemes are not.

(2) A Ponzi scheme can not raise taxes if it is about to collapse.

(3) Social Security benefits are taxed.

In our next blog you will find out how to fix Social Security to the benefit of all. Check back in on Monday.

What do you think?

What changes do you think need to be made in Social Security for it to last?

If you need help with your Social Security Disability benefits, contact the Social Security Disability lawyers at Fleschner, Stark, Tanoos & Newlin.

New Polls Show How Rick Perry’s Social Security Stance Sits with Voters

by Staff | September 16th, 2011

Texas Governor Rick Perry called the Social Security program a “Ponzi scheme” that was doomed for failure in his 2010 book Fed Up! It’s a denouncement that many politicos have said would cost the governor in his bid for the 2012 GOP nomination, but new polls may indicate otherwise.

The results of a Gallup poll taken earlier in the week were released Friday, September 16, and reveal that Perry’s comments on Social Security are  “a non-issue for most Republicans.

“However, [the comments] could cost [Perry] support with independents should he ultimately win the 2012 Republican presidential nomination. As many Republicans say they are more likely to vote for Perry for president because of his views on Social Security as say they are less likely — 19% each. Among independents, 12% are more likely to vote for him and 32% less likely.”

The poll also quizzed voters about whether or not they think Social Security should be protected or overhauled. Fifty-five percent of Repulicans said the program needs protecting, and 53 percent of Independents agreed.

Read more.

What do you think about Governor Rick Perry’s ideas about Social Security?

If you need help with your Social Security Disability benefits, contact the Social Security Disability lawyers at Fleschner, Stark, Tanoos & Newlin.