Hi everyone, welcome back to Fiscal Friday. Football playoffs are underway (let’s go Seahawks!) but there’s one game not televised. It’s the matchup between home team Social Security and our rivals The Ponzi Scheme.
For the opening play we have Social Security. Started in 1935, the program was designed to pay retirement benefits to workers. The opposition, Ponzi Scheme, (according to the SEC) is an investment fraud involving the payment of returns to existing investors from money contributed by new investors. In other words, the money paid in today, is also paid out today. It appears the home team Social Security, has division some between players. It appears the Boomers’ returns are currently funded by Millennials, and that's making them angry.
In the second quarter we’ve got Social Security’s declining players. When the game started, there were over nine workers for every one recipient. Today it’s two to one. Politicians and players worry who will carry this team down the road.
(turns on YouTube, finds halftime performance)
Welcome back after halftime! It appears in 1960 Congress started raiding Social Security’s trust fund to the tune of $2.6 trillion. Funds were spent immediately on current beneficiaries. The Ponzi Scheme calls this play “Pay-as-you-go.”
In Social Security’s defense, their game plan and finances are plainly visible for all to see. Ponzi Scheme keeps their playbook hidden until people catch on.
Fourth quarter, here we go… In order for Social Security to stay in the game, benefits paid to recipients after 2033 will be cut 25 percent. That’s a horrible deal for players!
In fact, in 1960 the Supreme Court ruled in Flemming v. Nestor “entitlement to Social Security Benefits are not a contractual right.” That’s a flag!! According to refs, if a private firm altered the terms of your retirement, they’d be prosecuted, but for some reason Social Security is able to get away with that bad play.
Defenders of Social Security claim the difference is voluntary. Ponzi Schemes require voluntary participation. Social Security is required, therefore it’s not a Ponzi Scheme.
Bottom line: the losers in this game are the taxpayers, notably Millennials, who are forced to play regardless of the loss. Social Security needs a new game plan, because our future is being tackled.
This is Bess Byers, making plays, and remember, it’s your generation and you’re empowered!