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Tag Archives: Rick Perry

Wait–Did Chris Matthews Say Social Security was a Ponzi Scheme?

Oh my, oh my! With all of the left-leaning folks eager to shoot down the notion that Social Security is a Ponzi scheme, I’m sure they would be surprised to hear who agrees with that notion. Can you believe MSNBC’s Chris Matthews actually agrees?

Matthews first put forth what he thought Social Security was originally intended to be: “You pay for it while you work. When you retired and have no other form of income, this will help you out. In fact, a lot were impoverished in the old days without Social Security. It’s a great anti-poverty program. But then people started to live past 65. Even the great Franklin Roosevelt didn’t make it to 65. In those days, if you made it to 65, you were lucky. You got a few bucks on Social Security.”

Then he put forth what it has become: “Today, lots of people fortunately make it past 65,” he said. “They live into their 80s and 90s. They’re still getting checks. The system doesn’t work that way anymore. It’s not as healthy as it once was. So, how does a Republican deal with the fact it is a Ponzi scheme in the sense that the money that’s paid out every day is coming from people who have paid in that day. It’s not being made somewhere.”

The actual video clip can be found following the link.

By the way, giving credit where credit is due, yesterday’s post about SS and Ponzi was spurred by a conversation with my buddy Carl, who blogs here.

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Social Security and Ponzi Schemes: What’s the Difference Between Bernie Madoff and Uncle Sam?

While listening to popular radio talk host Neal Boortz, I heard a comparison that has been made many times.  Simply put, Social Security is a Ponzi scheme.  And when you look at, the that assessment is dead on.

For the uninitiated (which included me until I looked it up), the father of the Ponzi scheme is Charles Ponzi, who at the peak of his pyramid scheme in the early 1900s was bringing in $250,000 a day before his downfall. There is a good Wiki on this here, but in short, hundreds of investors paid money into his scheme, with the promise of high returns in a short amount of time. What was really happening was, Ponzi was taking the money from new investors and paying out to “older” investors. A more recent grassroots example that many may have heard of was the infamous “Friends Helping Friends” scheme (I can’t be the only one that was asked at one point to join this). Same concept–you pay in, work your way up the pyramid, and cash out. And of course, there is Bernie Madoff, who had a $50 million dollar Ponzi scheme going until he was ratted out by family.

For the plan to work, there has to be a constant influx of new people and new money. When that stops, the pyramid falls.

So, let’s compare Social Security, that bedrock of entitlement programs, with the common aspects of the Ponzi Scheme.

  • In a Ponzi scheme, new people coming into the pyramid-like scheme pay in, expecting a payout later.  With Social Security, workers pay in during their working career, expecting a payout after retirement.
  • Ponzi scheme:  the people at the top of the pyramid get their payouts using the money from the new investors at the bottom of the pyramid.  Social Security:  recipients are paid using the money paid in by current workers.
  • Ponzi scheme:  money coming in is spent immediately, not saved.   Social Security:  money coming in goes right back out.  There is no “lockbox,” and by law, surplus Social Security funds are put into the general fund to pay for other government things having nothing to do with Social Security.
  • Ponzi scheme:  rate of return may vary, but is usually very high, which is what attracts investors.  Social Security:  compared to the rate of return available on the private market, that of Social Security is a joke (for lack of a better description).
  • Ponzi scheme:  when there are not enough folks paying in, the pyramid collapses.  Social Security:  when there are not enough folks paying in (we’re getting to that point), insolvency occurs and the government goes into debt to fund it.
  • Ponzi scheme:  investors pay in voluntarily.  Social Security:  attempt to opt out, and you will get a visit from government agents with badges and guns.
  • Ponzi scheme:  people who run them are arrested and go to jail.  Social Security:  Well, you know the answer to that one.

There you have it.  Our Social Security program that everyone knows and loves is a government-endorsed Ponzi scheme.  Anyone saying otherwise just doesn’t get it.

Another Person Who Agrees With Me–Reagan Would Be Persona Non Grata in Today’s GOP

On a couple of different occasions, I wrote about how former President Ronald Reagan probably could get elected by today’s GOP no matter how much they revere him (see here and here). It’s an opinion shared by a number of pundits across the blogosphere. Here is another example of exactly what I mean:

After trying (and failing) to disembowel Social Security, Reagan did an dramatic about-face and bailed out the program to the tune of $165 billion and made Social Security taxes more progressive, forcing upper-income Americans to shoulder more of the burden than their poor counterparts.
Reagan raised taxes 11 times! He passed the largest tax increase since World War II and introduced hefty new corporate taxes.

While conservatives like Sarah Palin tout Reagan’s record for standing up to the Soviet Union, they ignore that Reagan was attacked by far-right conservatives for being too conciliatory to the Communist bloc. When Reagan engaged in direct talks with Gorbachev and the Soviets, conservative leader Paul Wyerich wrote in The Washington Post, “Reagan is a weakened president, weakened in spirit as well as clout.”

Go here to read the rest. It’s definitely worth the read.

Texas Gov. Rick Perry is Stupid. Oh, and He’s Racist. ALL Republicans are Stupid and Racist!

As expected, Texas Governor Rick Perry entered the crowded GOP presidential field over the weekend.  Him tossing his hat in the ring was a non-event, as people had been expecting him to enter for a while now.  No offense to Michelle Bachmann, but most bets right now are figuring this to be a two-horse race between Perry and former governor Mitt Romney.  (Sidenote:  is becoming president worth running multiple times and spending millions of your own money??)

Almost immediately, the attacks on Perry started coming.

It’s no secret that the Left loves attacking their political opponents via cracks at their intelligence.  Folks on the left will wax poetically on about how intelligent Obama is and how stupid George W. Bush is, or how stupid Michelle Bachmann is.  I can’t recall anyone on the Left referring to Al Gore being stupid even though his grades were actually worse than Bush’s.  And even when such an observation was made, it was done in a way to still make Gore–the Lefty–not look so bad:

His generally middling college grades at Harvard in fact bear a close resemblance to the corresponding Yale marks of his presidential opponent, George W. Bush, whose studiousness and brainpower have been more open to question during this campaign.

Gore arrived at Harvard with an impressive 1355 SAT score, 625 verbal and 730 math, compared with Bush’s 1206 total from 566 verbal and 640 math. In his sophomore year at Harvard, Gore’s grades were lower than any semester recorded on Bush’s transcript from Yale. That was the year Gore’s classmates remember him spending a notable amount of time in the Dunster House basement lounge shooting pool, watching television, eating hamburgers and occasionally smoking marijuana. His grades temporarily reflected his mildly experimental mood, and alarmed his parents. He received one D, one C-minus, two C’s, two C-pluses and one B-minus, an effort that placed him in the lower fifth of the class for the second year in a row.

But I digress.

Recently, The Huffington Post jumped into the fray by announcing they had obtained a copy of Rick Perry’s college transcript.  As is usually the case, the intended implication is that maybe Perry ain’t so bright:

One reason that might explain his hostility toward the system: He didn’t do very well in it. A source in Texas passed The Huffington Post Perry’s transcripts from his years at Texas A&M University. The future politician did not distinguish himself much in the classroom. While he later became a student leader, he had to get out of academic probation to do so. He rarely earned anything above a C in his courses — earning a C in U.S. History, a D in Shakespeare, and a D in the principles of economics. Perry got a C in gym.

Nevermind that the debate should center on what he has done since then, or maybe even focus on his term as governor, or even that release of a transcript without permission of the student may be illegal. No. Let’s go back to college so we can legitimately say (say it along with me now) “Rick Perry is stupid!!”

Now, the other preferred method of attack is to find a way of labeling the GOP as “racist.”  Nevermind that the word has been misused so much that most people don’t even know the real definition, or don’t realize that “bigot” or “prejudiced” would probably be better if the argument actually applied.

MSNBC talking head Ed Schultz decided to prove Perry is a racist.   Now, mind you, the Left is always on the case when it comes to calling out statements they don’t like, especially when they are made by Limbaugh, Hannity, and other Conservative talking heads.  Somehow, they never mind when people like Schultz pull absurd statements out of their sphincter void and toss them out like gospel.

Rick Perry gave a speech where he referred to America’s debt as a “black cloud hanging over us.”  So what did Schultz do?  He had his people do some selective editing:

Yep.  Let’s leave out a key phrase–“that debt”–and make a case out of it, going so far as to invite guests on who you know will agree with you.  Schultz did apologize.  “On this particular statement, we should not have included it in our coverage of his overheated rhetoric,” he said in a statement.   “That’s our mistake. The full context of all of these other statements show who he is and what he stands for.”

In other words, “sorry we faked THAT one, but he’s still a racist!”

Next, we’ll start hearing about how GOP candidates are ugly and dress funny.