Community | May 31, 2009 | 46 comments

The Social Security Ponzi Scheme/Scam

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shanklinmike
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The release of the 2009 Social Security Trustees Reportindicates that the current economic crisis has negatively impacted the Social Security budget. It’s now projected that by 2016 Social Security spending will exceed revenues. According to the report, the financial condition of the Social Security program “remains challenging” and “need(s) to be addressed soon.” A look at the numbers shows us the severity of the Social Security budget problem.

Social Security is a “pay-as-you-go” system. This means that when you work, the government takes your money and gives it to Social Security recipients. In order to get workers to accept this system, the government promises to take other people’s money and give it to you when you retire. Think of it as an exponentially larger version of Bernie Madoff’s Ponzi scheme.

As long as a lot of people die before collecting any benefits, or die without collecting many benefits, the system is financially sound. In 1950, the worker-to-beneficiary ratio was 16.5-to-1. With people living longer, the worker to beneficiary ratio has fallen to 3.1-to-1 and within 20 years it’s expected to drop to 2.1-to-1. Due to this falling ratio,....
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46 comments // The Social Security Ponzi Scheme/Scam

  • titvol
    • 0
      titvol  
    • MoonLoon:

      I have a drunk cousin who gets over $300 a month in food stamps. That buys him steaks to trade to his neighbor for beer and peaches and sugar to make some home wine. The mindless bureaucrat who approves people like him would think twice if it was their money they were handing out.

    • 2 years ago
  • RFIDemocracy
    • 0
      RFIDemocracy  
    • MoonLoon:

      Easy for you to say.
      If you were on the streets and mentally ill AND addicted, would you have the presence of mind to seek help? You cannot fairly judge that which you do not comprehend from experience.

      Your comment reflects typical right-wing attitudes. First, more for me, and if you are sick or feeble of mind, tough shit. You are on your own.

    • 2 years ago
  • MoonLoon
    • 0
      MoonLoon  
    • MoonLoon:

      The actual "crazies" are in very small minority, who do need assistance. It is the con men/women sucking the life out of a system meant to serve the truly needy. They are the one's that should be cut off from the system. Why should workers support a population of moron's that have proven themselves capable of nothing beyond producing generation after generation of wards of the state.

    • 2 years ago
  • titvol
  • cybexg
    • 0
      cybexg  
    • MoonLoon:

      NOT welfare programs. The largest portion of money was diverted to help finance the buildup of the armed forces. I believe it was the Regan administration that permitted this.

    • 2 years ago
  • RFIDemocracy
    • 0
      RFIDemocracy  
    • Yep, it's a Ponzi sceme alrighty.

      In fact, isn't the entire US economy a giant Ponzi scheme?
      The Federal Reserve: Made-Off Securties head office

    • 2 years ago
  • kennymotown
    • 0
      kennymotown  
    • Raising the cap is truly the answer, I am not real sure how the rich can live with thereself's if the social security system fails. We all know where the money is and after all gated communities are not that hard to storm, it's just a gate.

    • 2 years ago
  • uppityprogressive
    • 0
      uppityprogressive  
    • Or, the wealthy pay their fair share of all taxes including Social Security Tax and the system works fine. Libertarianism is sociopathic. No taxes, no public holdings or services. The poor die in the street and the greedy survive. Great society...not.

      Social Security taxes are capped at about $90,000 of income per year. So the millionare pays the same as the working stiff. Take the cap off, it works fine. It has been the most successful social program ever. Before that, we were collecting bodies of the poor off the streets.

      Sociopathic Libertarians.

    • 2 years ago
  • titvol
    • 0
      titvol  
    • uppityprogressive:

      I've worked my ass off for what I have and I fucking resent assholes like you claiming whatever portion you feel is "fair" in order for you to feel good about your ideals. I've planned for and took responsibility for my retirement. Try teaching that simple idea to kids in school instead of your fucking Marxist redistribution schemes and maybe we wouldn't have so many people depending on SS.

    • 2 years ago
  • critic
    • 0
      critic  
    • uppityprogressive:

      @uppityprgressive - I suppose that you are entitled right? - Go and check your premise about Libertarians being "sociopathic. No taxes, no public holdings or services. The poor die in the street and the greedy survive. Great society...not."

      As recently as the 1960s, low-cost health insur-ance was available to virtually everyone in America —
      including people with existing medical problems. Doctors made house calls. A hospital stay cost
      only a few days’ pay. And charity hospitals were available to take care of families who couldn’t
      afford to pay for health care.

      Then the federal government moved in — with Medicare, Medicaid, the HMO Act, and tens of thousands of regulations on doctors, hospitals, and health-insurance companies. Medicare regulations alone run more than 100,000 pages. Today, more than 50% of all healthcare dollars are spent by the government. Health insurance costs are skyrocketing. And government health programs are
      heading for bankruptcy. Rather than roll back the government obstacles to afford-able health care, politicians continue to pile on more regulations.

      The Libertarian Party knows the only health care reforms that will make a real difference are those that draw on the strength of the free market.

      Its time to:
      Establish Medical Savings Accounts.
      Remove barriers to safe, affordable medicines.

      In June 2000, World Wrestling Entertainment star Val Venis traveled to the United States to get hip surgery. A Canadian citizen by birth, the buff, 250-pound WWF wrestler was entitled to “free” health
      care in his home country. But like thousands of other Canadians every year — some estimate tens of
      thousands — Venis crossed the border to get the prompt, high-quality health care he could only find in
      the United States.
      In Canada, he explained, he would have to wait months (or even years) for the “non-critical”
      surgery that would allow him to walk again without pain. And many Canadian hospitals don’t
      have the state-of-the-art equipment their U.S. counterparts do. So Venis chose to pay for his
      surgery, rather than settle for slow, questionable care in Canada. Unfortunately, Republican and
      Democratic politicians don’t seem to have the same grasp of medicine and economics that professional wrestler Val Venis does. Through regulations and mandates, they are trying to mimic Canada’s failed system. In doing so, they are damaging what was once the best health care system in the world.

      I suggest that you check your premise and do research before you make ignorant statements!

    • 2 years ago
  • RFIDemocracy
    • 0
      RFIDemocracy  
    • uppityprogressive:

      @ critic

      That's funny.
      Critic is trying to school uppityprogressive on Canada's healthcare system.

      Tell you a secret, pal. I know the person in question very well and I can tell you that same was raised in Canada and is a Canadian citizen who resides in the US. So, your one-off anecdote isn't schooling anyone.

      Also, I have lived in Canada all my life and I can tell you that elective surgery can make for long wait times but let me tell you that Canada's gov't.-run system kicks the shit out of America's exceptionally poor health care system, ranked one of the worst in the first world. Those with the coin to pay for expensive treatments and queue-jump can opt for going outside the country. Most Canadians will tell you that they pay between 60.00 and 75.00/ month for full coverage and the insurance company (the gov't.), you ready? ******CANNOT DENY YOUR CLAIM**

      World Health Organization Report: The U.S. health system spends a higher portion of its gross domestic product than any other country but ranks 37 out of 191 countries according to its performance, the report finds. The United Kingdom, which spends just six percent of GDP on health services, ranks 18 th . Several small countries – San Marino, Andorra, Malta and Singapore are rated close behind second- placed Italy.

      That is #37 out of 191 countries.

      Now, lets look at the cost:
      In 2006, per-capita spending for health care in the U.S. was US$6,714; in Canada, US$3,678.

      No system is perfect but, for my money, I'd go with the single payer solution and if you don't agree, well you are welcome to go through life voting against your own best interests.

      One more thing, the propaganda talking-points often claim you cannot choose your own doctor.
      Totally false and made up out of whole cloth. Same with all the other memes. I moved to the west coast 11 years ago and by new business partner recommended a physician to me because I needed a new one that was close to the office. One phone call, I had an appointment the next day.

      Remember: Virtually all of Congress is on the take from industry lobbyists and the system is unfotunately one of legal bribery and disinformation. They will tell you any lie to make you believe anything other than the American way is evil and wrong and impractical. It is a huge lie.

      I laugh when I hear republicans and Blue-dog Democrats repeating the mantra 'I don't want the government coming between me and my doctor'.
      Bullshit. The government is virtually invisible in such a system and doctors don't have to go begging to validate treatments. They simply perform them and the government opays the bill. And guess what? it's a smaller bill. (see figueres noted above)

    • 2 years ago
  • RFIDemocracy
    • 0
      RFIDemocracy  
    • uppityprogressive:

      titvol
      "I've worked my ass off for what I have and I fucking resent assholes like you claiming whatever portion you feel is "fair" in order for you to feel good about your ideals. I've planned for and took responsibility for my retirement. Try teaching that simple idea to kids in school instead of your fucking Marxist redistribution schemes and maybe we wouldn't have so many people depending on SS."

      That's a happy story. And if you get an unexpected medical condition it's wiped out and then your plan is up in smoke.
      But for the grace of God, there goes you.
      Only billionaire's needn't worry. A retirement nestegg can be vaporware overnight. Are you sure it's not invested with Madoff Securities?

    • 3 days ago
  • librelover
    • 0
      librelover  
    • uppityprogressive:

      First, I'd like to know where you learned your history. Second, just because a libertarian doesn't want their money going to government programs they don't have a say in does not mean they wouldn't give their money to privately run social programs they do support. Your logic is limited and ignorant.

      Second, the talk about GDP spending in the United States versus actual care is very skewed. It does not distinguish between medical spending on research and insurance claims versus actual care. Insurance, due greatly to government regulation, has become a racket. Due to runaway costs for litigation on claims, abusive profiteering by executives, and even doctors charging excessive amounts because of access to the massive amounts of money funnelled into the insurance industry (to pay for their own runaway E&O policies).

      Further, the United States does have some of the world's best medical services, but the access and costs are very limiting. Massive amounts of money goes into research and development in the United States. Look at how much money is going into the research for limb regeneration from the Pentagon.

    • 2 years ago
  • MotherForTruth
  • titvol
  • regjoeschmo
  • titvol
  • mikeshanklin
  • mikeshanklin
  • mikeshanklin
  • mikeshanklin
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