Letter: Social Security an elaborate Ponzi scheme
Inthe Feb. 17 Gazette-Journal a writer said, on the subject of Social Security as an entitlement, they have a right to those entitlement dollars and, addressing Congress on the issue, "Tell them (Congress) you have done your part, now they need to do theirs." Am I to laugh or cry?
Social Security from day one has been a Ponzi scheme, the mother of all Ponzi schemes. A really big one that makes what Bernie Madoff did look like chump change. Evidently, this individual does not realize that our government is broke and bankrupt. We just haven’t gotten around to admitting it.
Our government presently borrows $5 billion every working day—about $1.5 trillion per year, and growing. How much longer does anyone think this can go on? Entitlements constitute approximately 60 percent of all federal revenue. The big three entitlements are Social Security, Medicare and Medicaid, with unemployment and others finishing the list.
Discretionary spending consumes the other 40 percent. That 40 percent is made up of defense at some 15 percent of the budget (approximately $850 billion) and the other 25 percent, which covers all those government agencies and give-away programs. Note this important fact: Federal revenue, all taxes and tariffs collected, barely cover that 60 percent entitlement portion of the budget. Defense and the rest of the discretionary budget are largely funded by that borrowing mentioned above. We could spend zero dollars on defense and we would still have to borrow over $500 billion every year.
And it only gets worse. Entitlement programs are projected to grow almost $2 trillion over the next 10 years, with spending on discretionary items remaining flat. You could double taxes on everybody and it won’t fix this problem.
I hope you folks are living on seriously curtailed entitlements, because there isn’t enough pixie dust in the known universe to fix our financial problems. Beam me up, Dear Leader, I’m Taxed Enough Already.