Ponzi vs. Social security

Hi

In my last 2 blogs I attempted to spell out what a Ponzi scheme is and then I gave an explanation of how social security works. Now comes the political tying of the comparison knot.

In a Ponzi scheme there is no investment of funds, only a clear intent to defraud. The person running the scheme has no other motive than to scam his victims. When you look into the funding of social security you can see similarities between both. Congress when they voted to move the social security funds into the general budget thus converting a trust into an unfunded mandate, one which would be paid for in future funds. By doing this the government actually converted the social security system into a "Ponzi-like" scheme. The continued growth of the taxpayer base has proven to be a myth, circumvented by the political desire to spend funds on pork barrel like legislation. Congress bit off more than it could chew. We now face the payback, and, to use an old phrase, "The payback is a bitch." There are detractors on both side of the issue who will try to say otherwise but facts are facts, no pundit can alter that.

Now we are faced with coming up with a solution. Here everybody goes wild, we hear-You can't take from the senior citizens, they've paid in and deserve to collect...increase the amount of wages subject to social security...increase the rate of tax on social security subject wages...use a means test to lower payments to those who collect and are affluent...push back the retirement age...etc. The list of cures goes on endlessly. Here I want you to take a good look at the so called cures, each is a scheme to punish the American taxpayer for complying with the law. Do we really need that?

My biggest complaint is with our elected officials, past, current and future (hopefully not). Why haven't they done something about the problem. Leadership includes the ability to define a problem. come up with workable solutions and then selling these solutions to the taxpayer. The American taxpayer has had no leadership on this matter for too long. The time to act is NOW. We, the American tax paying public can express our view at the ballot box. Remember when you vote in 2012. I will be writing about my ideas for a solution in future blogs.

Please pray for our troops.
GOD Bless