That’s not how this works: Social Security

I saw this on the internet:

There is so much wrong with this.

  1. Social Security is NOT an insurance program. It is a Ponzi scheme. It never “saved” any of your money to pay back to you when you get older. It taxed you when you were working and when you get older it will tax other people to pay you.
  2. Congress didn’t “borrow” anything from Social Security in any sense of the work that works for “borrowing”. It outright took the money and spent it to buy other votes. It has only one way to repay that money. Tax other people even higher, just like they would to pay those old people in the first place. Zero practical difference. It’s a pay when it is due system.
  3. Telling people it was insurance was a con designed to get all those old Boomers and “greatest” generation people to pay into it thinking it was just like working hard and saving, which were virtues they could understand and get behind. But it NEVER worked that way. It was always a charity for non-workers, paid by workers.
  4. I am sure all those old people really believe that they aren’t pitiful objects of charity, but they are. The government taxed their income, spent it, and now will tax geezer’s children and grandchildren’s income to pay the geezer generation. Those old people would NEVER demand payments from their own kids and grandkids, but they will cheerfully demand it from other people’s kids and grandkids because, THEY PAID INTO IT.

You don’t fix a Ponzi scheme by demanding more victims join it. You fix it by accepting it for what it is. Shut it down. Pay the people who are in it with what they expected. Let the younger workers off the hook for the future. Why would any self respecting grandparent demand their own kids join a Ponzi scheme that the old people benefit from?

And since we are just creating trillions of dollars out of thin air now, I see no reason at all why congress couldn’t just pay off the $2.6T without even raising taxes. Just sign a bill and make it so. But don’t put the money into a lock box. Pay it to the beneficiaries and let them do what they will with it.

And stop lying to ourselves that this was ever Insurance.

About No One

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2 Responses to That’s not how this works: Social Security

  1. Heresolong says:

    I remember Diane Feinstein going on about the “trust fund” back in probably the 90s. Since this is a non-existent concept in the context of tax dollars (where is the fund invested) I concluded, even back then, that the Democratic party was engaged in a concerted effort to convince voters that there was an investment account somewhere with a balance. I’ve also seen proposals that suggested that SS be invested much like a 401k and owned by the individual, which would make the “trust fund” argument true. This was also opposed by the Democratic party as “gambling” with the future of seniors.

    To tack on another political argument about SS, I’ve seen conservatives and Republicans attacked when they proposed a smaller government on the grounds that they were taking government handouts in the form of SS, so the Democrats aren’t even consistent in their arguments about the program. Is it a trust fund that you invest in or a welfare program for seniors? I guess it depends on the agenda currently under discussion.

    Also note that the Ds have opposed any sort of means testing over the years. Bill Gates gets a check each and every month, as does the widow down the street who is clipping coupons to make ends meet. Also raising the age of eligibility now that we are living decades longer than we used. to. Wow, I could go on and on about this one. Apparently SS is still one of my hot button topics.

    I opined years ago that I would give up all claim to a social security check if they would stop taking money from my paycheck. I am now in my mid-fifties and I would probably still make that deal today although today, of course, it would benefit me a lot less than it would have back then.


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