The GOP tonight is going to have their debate, during the time the Monday Night Football game is going. Most will watch the football because most are tired of the crap coming from Washington. Here is what I am saying here. Tonight, the Republicans need to be careful coming after Perry for what he said about Social Security. They are doing that to cotton to the pressure of the press on them. This is the wrong thing to do. Here is the reason why.
Perry is not the first to call Social Security a Ponzi scheme, and a lot of the ones that called it that have been democrats. Think of it this way.
If social security had been described as it really is, would you have wanted it? If they had come to you and said,’we’re going to create this ponzi scheme, that you’re not going to have any choice in paying into it,’ would you want it? Of course you wouldn’t. So it was labeled like this. ‘Would you like a program that would guarantee your retirement?’ Of course you would. That is how Social Security was drafted up.
But don’t let anyone make you believe that Governor Perry was wrong about calling social security what it has become. A Ponzi Scheme. And if the Republicans tonight make a big deal of this, it will be a mistake for them and I think that Perry will take care of himself well. But Perry calling Social Security a Ponzi scheme isn’t the first time it has been called that.
Romney himself has used the term “Ponzi scheme.” He has said horrible things about it. He doesn’t believe you can be elected saying so, so he won’t. But he has put out a flier, attacking Rick Perry on Social Security.
There’s a number of pieces out there that show several calling SS a ponzi scheme. From the Rush Limbaugh show today……
Stanley Kurtz, National Review Online. “[I]t’s certain that Perry’s Ponzi-scheme claim is in no way original. Not only have a raft of conservatives called Social Security a Ponzi scheme over the years, quite a few very respectable liberals have done so as well. It is clearly wrong either to treat the Ponzi-scheme analogy as unprecedented or to rule it altogether out of legitimate public debate.
“A historical tour of the use of the Ponzi-scheme metaphor will make the point. Jonathan Last has already identified a 1967 Newsweek column by liberal economist and Nobel laureate Paul Samuelson as perhaps the earliest use of the Social Security/Ponzi-scheme comparison in public argument. … Samuelson’s idea that Social Security could best be understood as an enduring and rational Ponzi scheme grew out of his ‘overlapping-generations model,’ … Samuelson’s model implied that public debt in general, and Social Security in particular, could be financed over successive generations without major tax increases.
“In the 1980s, Samuelson’s overlapping-generations model was seized upon by Keynesian economists to serve as a microeconomic foundation for their favored theories and plans. The unfortunate weakness of Samuelson’s model is its assumption that a growing economy will produce continual population increase. In an April 1978 follow-up in Newsweek to his original 1967 column, Samuelson acknowledged that demographic reality was disproving this assumption. … In an April 1999 Los Angeles Times op-ed titled ‘Ponzi Game Needs Equitable Solution,’ for example, Stanford University economists Victor Fuchs and John Shoven hark back to Samuelson’s 1967 column,” and they quote him.
“[T]he 1987 publication of Ben Wattenberg’s book The Birth Dearth. Wattenberg, who once worked for Lyndon Johnson and Hubert Humphrey, was by the late 1980s a centrist Democrat… In a U.S. News & World Report cover story excerpting The Birth Dearth, Wattenberg sums up his argument by saying: ‘In short, Social Security is a Ponzi game, a pyramid scheme, a chain letter.’ … We’ll see more examples of liberals and Democrats calling Social Security a Ponzi scheme, but let’s first note that from the mid-1980s on, the Ponzi analogy became a staple for conservatives. In an August 1985 editorial commenting on Social Security’s 50th anniversary, the Wall Street Journal says the system was designed like a Ponzi scheme.
“A July 1994 Chicago Tribune column by Cato Institute head Edward Crane dubs the offices of the Social Security Administration ‘home of the world’s largest Ponzi scheme.’ A 1995 piece by conservative columnist Michael Barone argues that ‘…many more voters under 50 realize that Medicare and Social Security are Ponzi schemes in which the benefits they’re paying for today will be impossible to collect in the future without unthinkable tax increases.’ … In December of 1988, Ronald Reagan’s budget director, James C. Miller III, made news when he called Social Security a Ponzi scheme before an audience at the National Press Club.
“Miller, however, had just left the Reagan administration and acknowledged that he would not have spoken as frankly while still in government… In September 1994, conservative columnist Jeff Jacoby made the same point: ‘Not being a politician, I can say anything I like about Social Security — even the truth. And the truth is that Social Security is an immense Ponzi scheme…’ In a January 1997 op-ed in the Washington Post, left-liberal Robert Kuttner wrote: ‘Critics of the system call it a giant Ponzi scheme. But as long as the economy and its tax base keep growing, there is nothing wrong with taxing current workers to finance current retirement.’ …
“In the fall of 1995, [liberal] Robert J. Shapiro published an article called ‘Rethinking Social Security: The New Deal’s Crowning Achievement Has Fallen and It Can’t Get Up’ … complains that Social Security, as currently structured, is crowding out funding for young children … [it’s a] ‘National Ponzi Scheme.’ … In January of 1996… William Raspberry … argues that ‘[Social Security] is, in important ways, like a massive Ponzi scheme …’ [I]n May of 1996, liberal columnist Jonathan Alter published a piece in Newsweek suggesting that former Democratic Colorado governor and erstwhile Clinton supporter Richard Lamm might run for president as the candidate of Ross Perot’s Reform party. … Lamm is praised as a ‘truthteller’ by Alter for being willing to say … that Social Security is a ‘well-meaning Ponzi scheme.’ …
So you see, it would be a mistake for the Republicans to go after Perry for calling Social Security a Ponzi Scheme. He isn’t the first to call it that, and he definitely won’t be the last, now that it has become exactly that. A Ponzi Scheme.
May God bless our efforts to help get America back, and put God back into our country.
God, Bless America. Bless Americans. And Bless us to start using more common sense.