Checked out The Howler blog today, on the rec of my new beserkly housemate, and wandered to the following analysis from the Baltimore Sun.
Question: Is GOP Prez candidate Rick Parry right? Is Social Security a Ponzi scheme?
Answer: Not unless you count 80% guaranteed return a Madoff Ponzi scheme. And, if you tax the rich (DUH!), 100% return.
BALTIMORE SUN EDITORIAL (9/14/11):
The only real issue is how big a benefit should be provided by Social Security and how it should be financed.
The nation's demographics are changing, and the existing formula will not work—at least not for those who retire in 2038 or beyond, according to the most recent analysis. Too many beneficiaries are living too long and are supported by too few workers for the status quo to last.
But the problem is relatively easy to solve. One can raise taxes or reduce the benefit or some combination of both. For instance, delaying retirement age for the next generation, which is sure to live longer and healthier than its predecessors, might be prudent. Capping cost-of-living adjustments might be helpful, too. And increasing the cap on income subject to Social Security taxes would increase revenue and make the system more fair.
The sooner such a solution is agreed upon, the less drastic the change will need to be. But even with no change, future retirees would receive an estimated 80 percent of benefits. Ponzi victims never had it so good.
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