Is Social Security a Ponzi Scheme (like Madoff's)?

In the aftermath of the Madoff implosion, quite a few people have pointed out the parallels between a Ponzi scheme and Social Security. Arnold Kling, whom I respect, has written: I’ve been thinking that Madoff is a perfect analogy for the public sector. The government gives people money, which it expects to obtain by taking the money from people in the future. Even the Center on Budget Policy and Priorities, not known as a right-wing organization, sees the U.S. fiscal stance as unsustainable (pointer from Ezra Klein via Tyler Cowen)—in other words, a Ponzi scheme.

Armon Ayers wrote: Can someone tell me where my contributions are? Where is this lock box kept, Democrats?[i]

While some in the media have expressed fury over allegations that Bernard Madoff ran a Ponzi scheme that may have cost investors up to $50 billion, CNBC’s “Mad Money” host Jim Cramer made another point.

“To everybody in the press, who’s calling Bernie Madoff’s alleged $50 billion scam the ‘largest Ponzi scheme ever,’ I say give me a break,” Cramer said on his Dec. 17 show.

According to Cramer, the largest Ponzi scheme in history is run by the federal government – Social Security.

“We know the truth about Ponzi schemes,” Cramer said. “We all know the name of the biggest Ponzi scheme in history and it’s not even illegal. In fact, it is run by the U.S. government. And the name of it – well they call it Social Security.”

Armon Ayers wrote:Love him or hate him, this time Jim Cramer makes a good point.

While some in the media have expressed fury over allegations that Bernard Madoff ran a Ponzi scheme that may have cost investors up to $50 billion, CNBC’s “Mad Money” host Jim Cramer made another point.

“To everybody in the press, who’s calling Bernie Madoff’s alleged $50 billion scam the ‘largest Ponzi scheme ever,’ I say give me a break,” Cramer said on his Dec. 17 show.

According to Cramer, the largest Ponzi scheme in history is run by the federal government – Social Security.

“We know the truth about Ponzi schemes,” Cramer said. “We all know the name of the biggest Ponzi scheme in history and it’s not even illegal. In fact, it is run by the U.S. government. And the name of it – well they call it Social Security.”

(Excerpt) Read more at businessandmedia.org ...

Cato wrote:

Armon Ayers wrote:Love him or hate him, this time Jim Cramer makes a good point.

While some in the media have expressed fury over allegations that Bernard Madoff ran a Ponzi scheme that may have cost investors up to $50 billion, CNBC’s “Mad Money” host Jim Cramer made another point.

“To everybody in the press, who’s calling Bernie Madoff’s alleged $50 billion scam the ‘largest Ponzi scheme ever,’ I say give me a break,” Cramer said on his Dec. 17 show.

According to Cramer, the largest Ponzi scheme in history is run by the federal government – Social Security.

“We know the truth about Ponzi schemes,” Cramer said. “We all know the name of the biggest Ponzi scheme in history and it’s not even illegal. In fact, it is run by the U.S. government. And the name of it – well they call it Social Security.”

(Excerpt) Read more at businessandmedia.org ...

Q: So, What are you doing about it? Are you calling your elected representatives to express you views? Do you vote for people that support and embrace the US Consitution or do you continue to put the same people back in office?