GOP Senator Johnson calls Social Security a Ponzi scheme

Advertisement - Continue Reading Below

Senator Ron Johnson has come under fire after making the statement that Social Security is nothing more than a “legal Ponzi scheme” and extended his support for privatizing the program. Though he made it clear that he supported a privately run organization, he said the public just wasn’t ready for the idea… yet. “Currently, politically, you can’t do it,” Johnson stated while in Oshkosh, Wisconsin on June 3rd. “We’ve got to convince more of our fellow citizens that Social Security really is — and by the way, I was wrong when I said this in 2010, I said it’s a Ponzi scheme, and Ponzi schemes are illegal. So, Social Security is — it’s a legal Ponzi scheme.” This isn’t his first time making such statements, as he called the program a “Ponzi Scheme” when he was first elected to the Senate in 2010.

So why does he believe the myth that the nation’s largest and most popular social insurance system is a fraud? Actually, Social Security is a very transparent program that faithfully extends reports quarterly on its 75-year financial position. Just like national pension systems, Social Security taxes workers to provide benefits for retirees and people with disabilities. There are some years when Social Security takes in more than it pays out, but at that point it invests the excess in U.S. Treasury bonds, guaranteed by the full faith and credit of the U.S. government, and has never been late on a payment to date.

The reason behind Johnson’s statement? Apparently he believes that the government can no longer honor the Treasury bonds in which Social Security’s surplus is invested and “the trust fund has exactly zero in financial value”. Actually, Social Security has a surplus of $2.8 trillion held in Treasury bonds that are no different than the ones held by China and our other creditors.

Regardless, Johnson is right about one thing: privatizing Social Security, which would require Americans to privately invest their money and take on the accompanying risks, remains extremely unpopular and already failed miserably in 2005 when it was previously attempted by President George W. Bush. I think the majority of American’s would agree on one thing: if it ain’t broke, don’t fix it.

 

Advertisement - Continue Reading Below

Most Popular

  • Three independent candidates for US President

    The U.S. elections feature the two major political parties: the Democratic Party and the Republican Party. Besides these two, there are other parties dubbed “Third Parties” due to their minority standing. Independent candidates are those who run for president without any formal…

  • Scots Angry over Trump’s View of Brexit

  • What is Trump's stance on combating terrorism?

Most Viewed

  • Revealing Info on How the Clinton's Made Their Money

    On May 17, 2016, the personal financial disclosure of Hillary Clinton revealed that she earned over $5 million in royalties from a 2014 memoir and around $1.5 million for her speeches in 2015. Mrs. Clinton's camp decided to reveal info on how her family made their money to stand in good stead…

  • Trump refuses to act presidential

  • Do Cruz and Kasich have a pact?

From the blog

  • Former Illinois Governor Blagojevich sentenced

    Rod Blagojevich, former Illinois governor, was sentenced on Tuesday, August 9. He was charged with a variety of corruption acts including trying to sell Barack Obama´s Illinois US Senate chair. The sentence was first announced as 14 years but was upheld after Blagojevich’s lawyer’s…

  • Punta Gorda, Florida is Scene of Deadly Mishap.

  • Jury Recommends Life Sentence in Andrew Schmuhl Case

  • Gary Oliva Arrested in Ramsey Child’s Murder

  • Ex-lawyer guilty of soliciting murder of his manager

}