Yes, It's a Ponzi Scheme —but We Can Fix It

Social Security can be easily saved, with political courage: Krauthammer
By John Johnson,  Newser Staff
Posted Sep 16, 2011 10:44 AM CDT
Bogus documents, including Social Security cards, are displayed in this file photo.   (AP Photo/Charles Rex Arbogast)

(Newser) – Rick Perry keeps riling people by calling Social Security a Ponzi scheme. But guess what, writes Charles Krauthammer in the Washington Post: It is a Ponzi scheme. In fact, it's almost the very definition of one. The big difference is that a Ponzi scheme is illegal while Social Security is a mandatory government program—but that little detail won't make the math work any better. Given US demographics, the program is doomed to fail.

"Of course it’s a Ponzi scheme. So what?" Krauthammer asks. "It’s also the most vital, humane, and fixable of all social programs. The question for the candidates is: Forget Ponzi—are you going to fix Social Security?" The solution is relatively simple, he adds: "Change the cost-of-living measure, means-test for richer recipients and, most important, raise the retirement age." After all, FDR never intended the program to "provide two decades of greens fees for baby boomers." Full column here.

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