A Brief History of Social Security being called a Ponzi Scheme

The latest talking point between the left seems to be that calling Social Security a Ponzi Scheme is a new thing.

This proves to me that the left has the shortest memory of any creature on earth.


In 2007, Krugman, quoting others:
(Chris Matthews, & Russert)

Mr. Russert: “Everyone knows Social Security, as it’s constructed, is not going to be in the same place it’s going to be for the next generation, Democrats, Republicans, liberals, conservatives.”

Mr. Matthews: “It’s a bad Ponzi scheme, at this point.”

Mr. Russert: “Yes.”

From the American Thinker Magazine, 2005:

In the past several months as the debate over Social Security reform has taken center stage in the theater of the absurd that is modern American politics, the idea has been floated that the entire pay—as—you—go structure of this system closely resembles a Ponzi scheme, albeit one that is about to collapse.

Not far enough back for you?
In 2004, the Daily Howler blamed the phrase on earlier generations:
(quoting Ed Crane)

And so it goes in the offices of the Social Security Administration, home of the world's largest Ponzi scheme. Sold originally to the American public as a program to care for the indigent elderly, then as a "national pension plan" into which we pay "insurance premiums," Social Security has always been a fraud, a pay-as-you-go slush fund for politicians to dip into...

Geez. That's back in 1994!

The Cato Institute, in 1999:

Why is Social Security often called a Ponzi scheme?

If anyone tells you that this is something new, please copy and paste. Freely.

Social Security going broke in real time

From Business Insider, a chart that should make you kinda frightened. Regarding Social Security, the payouts are starting to exceed the payroll tax that is meant to pay for Social Security benifits for those who are currently receiving them:

These lines were not expected to cross for at least another five years. This is the cost of the protracted recession and the failure of the economy to generate new jobs. The 2008-2009 increase in benefits was at a nosebleed level of 9.5%. That level has collapsed to 3.9% in the 2009-2010 period. This is the result of a “0%” COLA increase for 2010. The flip side is that those receiving checks are getting squeezed as their costs rise and income is stable. In the real world COLA is a joke. As this evolves it will just be a drag on consumption and extend the weak economy.

Ugh. The sad thing is, this is all very accurate. On top of our down economy, SS is actually broke now. Its no longer a theory that SS was a horrible ponzi scheme. Its a reality.