Posted by Todd Hagopian (@ToddHagopian)
Franklin D. Roosevelt delighted progressives around the country when he signed the Social Security bill in 1935. In 1944, Ida Mae Fuller got the very first Social Security check, valued at $22.54. Ms. Fuller, bless her heart, is going to be a critical piece in my argument against social security. You see, a Ponzi scheme is basically a scheme where the very first investors make a very high return on their investment, and those who get in last lose all of their money (while their money goes to making the initial investors even more money). Ms. Fuller is not a bad person, she just happens to be caught on the wrong side of history, thanks to an easy-to-pass, but impossible-to-manage piece of legislation: Social Security.
To help make my point, let’s look at Ms. Fuller’s return on investment:
Ida Mae Fuller paid a total of $44 into the Social Security program, yet she received $20,993 in benefits. That is a fantastic 47,475% return!
Personally, I will pay over $500,000 into Social Security, and I will never see a dime in benefits…
The Social Security Administration believes that the funds will run out in 2033, or 20 years from now. I am a successful Gen Y business person. Even if I forget about what I have paid up until today, I will pay over $500,000 in Social Security taxes (including my employer’s contributions on my behalf) over the next 20 years, before Social Security goes belly-up. If I had enjoyed Ms. Fuller’s rate of return, I would receive approximately $238 Million in Social Security benefits…But, since Social Security is an enormous Ponzi Scheme, I will receive no money at all…Zero dollars.
The Government introduced Social Security just 13 years after Charles Ponzi was convicted for the largest Ponzi Scheme that the government had ever seen (prior to Bernie Madoff’s scheme in 2008). Evidently, they had learned enough from Mr. Ponzi, that they thought they could continue getting elected in the short-term by introducing a Ponzi Scheme into National Politics. The Democrats held the White House for an unprecedented 20-year span from 1932 – 1952. No party had held the White House that long since 1827, and no party has held the White House longer than that run since then…so, apparently this Ponzi Scheme worked…
The biggest shame of all, is that people have known that this piece of legislation was flawed for years and have done nothing about it. President Clinton investigated significant Social Security reform in the 90’s, which would have given individuals private accounts for their money to be saved in. President Bush offered similar ideas, and pushed hard for their passage. President Obama has offered no new ideas, and has taken entitlement program reform off of the table for all of the recent budget negotiations.
Apparently, since he won’t be president in 2033, this problem doesn’t need fixing…
Back to the point…The very first “investors” in Social Security made a 47,475% return…But, I will waste $500,000 on a program which will never pay me a dime…
How is this not a Ponzi Scheme?
Why aren’t there marches on Washington on this issue?
How is this not the #1 issue for Gen Y at the Ballot Box every year?
Attention Gen Y
Until we band together on this issue, we will never be heard.
Until we demand an answer, politicians will continue to avoid the third rail of politics.
Until we pool our votes together, we will never be powerful enough to force a policy change
What Should We Do Now?
Share this story on Social Media, talk about it at the dinner table, and be passionate about the issue!
Send a letter to your representative, tell them you will never vote for them again unless they fix the issue!
Demand a candidate with ideas, demand a candidate with answers, DEMAND A SOLUTION…NOW!
- Social Security: The Most Successful Ponzi Scheme in History (thenewsdoctors.com)
- Killing The “We Paid Our Taxes; We Earned Our Benefits” Social Security Ponzi Meme (zerohedge.com)
- Mises: Social Security Is The Most Successful Ponzi Scheme in History (personalliberty.com)