Expert turns tables on Dem critics after
Musk accuses Social Security of being
'Ponzi scheme'
Fox News,
by
Andrew Mark Miller
Original Article
Posted By: Harlowe,
3/23/2025 7:05:22 PM
Democrats have pushed back after Elon Musk claimed that social security operates like a "Ponzi scheme" as he continues to argue for cuts to the federal bureaucracy, but one expert tells Fox News Digital that Musk is on track with his criticism of the agency.
"Musk’s statement about Social Security being the world's biggest Ponzi scheme does have validity," James Agresti, president of the nonprofit research institute Just Facts,... [Snip] "What it does is, it transfers money when we are young and working and paying into Social Security taxes,"... "That money, the vast bulk of it, goes immediately out the door to people who are currently receiving benefits.
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Reply 1 - Posted by:
AntiStatist 3/23/2025 8:37:33 PM (No. 1920160)
The main problem with SS is that Congress added numerous benefits there that had no withholding taxes to fund them, such as disability benefits, benefits for children with difficulties (easily exploited by welfarians- “crazy checks” for their kids).
Those should have been left to the states. And they are bleeding SS dry.
48 people like this.
Reply 2 - Posted by:
caljeepgirl 3/23/2025 8:56:12 PM (No. 1920169)
Exactly, #1! While it's always been a Ponzi setup from its inception, veering away from its original intent to only support retirement benefits was the real death sentence!
30 people like this.
Reply 3 - Posted by:
DVC 3/23/2025 9:28:48 PM (No. 1920175)
Musk is right, and I've said it myself many times.
31 people like this.
Reply 4 - Posted by:
rememberwhen 3/23/2025 10:49:01 PM (No. 1920188)
SS was designed to fail. It could only work with ever-increasing classes of people being added to the mix. Once everyone was in, it had to implode. Typical Dim program--not thought through. I have advocated replacing it with an actuarially sound retirement system since the 1970's.
20 people like this.
Reply 5 - Posted by:
crashnburn 3/23/2025 11:13:56 PM (No. 1920193)
I'll have to live past 90 to break even on my SS, and it doesn't come close to covering my bills.
When I first joined the workforce, I didn't expect SS to be around when I didn't have to work anymore, so I invested in stocks, bonds, and sectors. My total investments completely dwarf what I put into them, thanks to compounding.
I know DemonRats always demonize whoever mentions investing SS into the stock market, but it's the best long-term investment available. Currently, a worker fresh out of high school has up to 52 years to contribute to SS, and you don't even keep pace with inflation! Long-term conservative investments beat inflation by 7 or 8%. And you don't have to have a fund manager. Just have passive investments that hold the entire stock and bond markets. Government employees already have something very similar.
21 people like this.
Reply 6 - Posted by:
davew 3/23/2025 11:16:31 PM (No. 1920195)
The primary difference between a Ponzi scheme and Social Security is that a Ponzi scheme does not own a bank that can generate all the money it needs to pay benefits. These benefits are established by law as an entitlement to all workers who meet the program qualifications. This is a solemn promise made by a government that can only be broken by an act of Congress that changes the law. This forces them to prioritize fiscal spending in a way that reflects the best interests of citizens. Providing a source of income for people no longer in the workforce is both a social and moral good. Prioritization requires discipline to avoid pumping more money into the economy than can be put to productive use, thus causing inflation.
10 people like this.
Reply 7 - Posted by:
Lawsy0 3/24/2025 12:18:04 AM (No. 1920203)
Musk isn't the first to call it that. Dearly Departed Rush did, too.
31 people like this.
Reply 8 - Posted by:
jinx 3/24/2025 6:03:48 AM (No. 1920227)
I thought that Johnson put the SS it collected into the general coffers. There is no lock box.
9 people like this.
Even worse - Ponzi never paid money to people who invested nothing.
21 people like this.
Reply 10 - Posted by:
bpl40 3/24/2025 7:04:09 AM (No. 1920241)
Since the crash of '29 the US stock market has returned 7.7% on an average. Social Security funds on the other hand have earned 1.2%. Right there is the main answer to all problems about Social Security. We need the 'Chicago Solution' implemented by Chile. The average Social Security check will more than double.
6 people like this.
Reply 11 - Posted by:
Dodge Boy 3/24/2025 8:29:05 AM (No. 1920277)
Recall that W floated the idea of converting the social security program into an individual payer 401k-like system some 20 plus years ago. Congress laughed him out of the room for proposing such a ridiculous idea. Wonder who gets the last laugh now.
10 people like this.
Reply 12 - Posted by:
janjan 3/24/2025 8:52:10 AM (No. 1920301)
Most seniors are deluded into thinking that they are just getting their own money back in social security payments. They truth is that within a few years they have gotten back everything they paid in. After that it becomes a liability. The Government has lied to us for years about this and unfortunately most retirees have to rely on those payments to live. That’s why telling the truth about it now causes an earthquake and makes the messenger an evil enemy.
7 people like this.
Reply 13 - Posted by:
Zigrid 3/24/2025 9:52:55 AM (No. 1920339)
Just in time...Social Security has been opened by Doge so WE can see just how corrupt the government has been...Social Security was robbed by the government....and the trust fund set up for old folks was depleted...WE are lucky Elon Musk and his musketeers are checking out every number and no longer will 120 year old recipents get the money for their family who have scammed the fund....they will not be sent to jail....but...let's take them off the list to receive funds forever.....
7 people like this.
Reply 14 - Posted by:
MickTurn 3/24/2025 11:38:36 AM (No. 1920391)
The real crime is when people die before getting Social Security ALL their contributions along with their employers contributions go into the BIG POT, NOT to the Estate of the person that OWNED THE MONEY!
11 people like this.
Reply 15 - Posted by:
Aklon70 3/24/2025 2:52:04 PM (No. 1920521)
The only way to save social security is to strip Congress of their own cushy retirement system and heath care plan, making them reliant on social security, Medicare, and a 401k just like the rest of us.
With their own skin in the game, it'll be less than two weeks before everything's fixed.
6 people like this.
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After 90 years of operation, the trust fund “currently has enough money to fund two years of program operations.” The fund’s interest payments have been higher than the rate of inflation. “...the Obama administration sent out (stimulus) checks via Social Security numbers to 80,000 people who were dead, and about 70,000 of them, the Social Security Administration knew they were dead.” Democrats claiming Mr. Musk is attempting to “strip away benefits” is not true; severing employment/salaries of SSA administrative overhead workers “actually strengthens the program financially.” ~ “In other words, Social Security is every bit as insecure as the stock market.” (Tony Snow)