Wednesday, December 1, 2010

Krugman Is Beginning to Understand the Social Security Ponzi Scheme

Though he blames it all on the hard right and -rightcenter, we have the first hint that Paul Krugman gets that Social Security is a Ponzi scheme (or at least some kind of scam):

I think it is worth pointing out that like so many proposals from that side of the political spectrum — for this is, very much, bipartisanship as a compromise between the center-right and the hard right — this one involves a fundamental piece of strange logic. Namely, it argues that in order to head off the dire prospect of future cuts in Social Security benefits, we must … cut future Social Security benefits.

His ideal world, of course, would require huge money printing:
Right now we have a retirement system that has the great virtue of not being intrusive: Social Security doesn’t demand that you prove you need it, doesn’t ask about your personal life, doesn’t make you feel like a beggar. And now we’re going to replace that with a system in which large numbers of Americans have to plead for special dispensation, on the grounds that they’re too feeble to work for a living. Freedom!

So there you have it, according to Krugman, just give everyone what they want. This would make much more sense if it was a private investment fund, where money was actually invested so that returns could be paid out, but with SS the government just loaned the money to itself and has no way of paying it back without heavy duty money printing.

As for Krugman, bringing up "Freedom!" in exasperation. Freedom doesn't start with in the middle of a Ponzi scheme. It's starts before wage earners are forced into the Ponzi scheme. Who in their right mind would "invest" with the government via Social Security? With real freedom, SS would collapse of its own weight.

1 comment:

  1. The shamelessness of these folks keeps amazing me. Let's face it: they aren't stupid at all. However, the propaganda PK his keens and the masters are feeding to the sheeple clearly shows their arrogance and self-proclaimed superiority to an average American who's allegedly too dump to take care of him/her-self.

    Perfectly disgusting...