Social Security A Ponzi Scheme? So Says…


Well, I’ll let you read the quote first (emphasis mine):

I like Freeman’s idea of providing each individual with a trust fund when young rather than retirement benefits when old, but we had better realize that this is a significant change in the character of the social insurance system. Social Security is structured from the point of view of the recipients as if it were an ordinary retirement plan: what you get out depends on what you put in. So it does not look like a redistributionist scheme. In practice it has turned out to be strongly redistributionist, but only because of its Ponzi game aspect, in which each generation takes more out than it put in. Well, the Ponzi game will soon be over, thanks to changing demographics, so that the typical recipient henceforth will get only about as much as he or she put in (and today’s young may well get less than they put in).

So, what dastardly right-wing politician seeking office said that? Answer after the jump.

Nobel Laureate and economist Paul R. Krugman.

Probably one of the few times I agree with Krugman, though I’m pretty sure that he’s changed his tune by now, to fit that in the Obamacrat songbook.

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About Conservative Wanderer

Conservative Wanderer is currently Editor-in-Chief of That's Freedom You Hear! That means anything that goes wrong can be blamed on him. Previously he was a contributor to the PJ Tatler.
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