During the recent GOP presidential debate Texas Gov. Rick Perry said that Social Security is a monstrous lie and a Ponzi scheme. More and more people are coming to see that Social Security is a Ponzi scheme but is it a lie as well? Lets look at it.
Heres what the 1936 government pamphlet on Social Security said:
After the first three years -- that is to say beginning in 1940 -- you will pay and your employer will pay 1.5 cents for each dollar you earn up to $3000 a year. ...
Beginning in 1943 you will pay 2 cents and so will your employer for every dollar you earn for the next three years. ...
And finally beginning in 1949 12 years from now you and your employer will each pay 3 cents on each dollar you earn up to $3000 a year.
Heres Congress lying promise: That is the most you will ever pay.
Another lie in the Social Security pamphlet is: Beginning November 24 1936 the United States government will set up a Social Security account for you. ... The checks will come to you as a right.
Therefore Americans were sold on the belief that Social Security is like a retirement account and money placed in it is our property. The fact of the matter is you have no property right whatsoever to your Social Security contributions.
You say Williams youre wrong! We have a right to Social Security payments. In a U.S. Supreme Court case Helvering v. Davis (1937) the court held that Social Security is not an insurance program.
According to the court the proceeds of both (employee and employer) taxes are to be paid into the Treasury like internal revenue taxes generally and are not earmarked in any way.
In a later Supreme Court case Flemming v. Nestor (1960) the court said to engraft upon the Social Security system a concept of accrued property rights would deprive it of the flexibility and boldness in adjustment to ever-changing conditions which it demands.
Belatedly the Social Security Administration is trying to clean up its history of deception. Its website (http://www.ssa.gov/history/nestor.html) says entitlement to Social Security benefits is not (a) contractual right.
The SSA adds that there has been a temptation throughout the programs history for some people to suppose that their FICA payroll taxes entitle them to a benefit in a legal contractual sense. ... Congress clearly had no such limitation in mind when crafting the law.
Thats the SSAs dishonesty. After all it was the people in that administration who said in their 1936 pamphlet that the checks will come to you as a right.
Theres more deceit and dishonesty. In 1950 I was 14 years old and applied for a work permit for an after-school job. One of the requirements was to obtain a Social Security card.
In bold letters on my Social Security card are the words For Social Security Purposes -- Not For Identification. According to the SSAs website this legend was removed as part of the design changes for the 18th version of the card issued beginning in 1972.
Thats a shameless unadulterated lie. Because were idiots were asked to believe that the sole purpose for the removal of Not For Identification was for design purposes.
The fact that our Social Security numbers were going to become a major identification tool had nothing to do with getting rid of the statement.
Aside from these lies Social Security is a Ponzi scheme. The major difference between Social Security and Bernie Madoffs Ponzi scheme is his was illegal. Three Nobel laureate economists have testified that Social Security is a Ponzi scheme.
Nobel-winning economist Paul Samuelson called it the greatest Ponzi game ever contrived. Milton Friedman also a Nobel laureate said it was the biggest Ponzi scheme on Earth. Paul Krugman another Nobel laureate predicted that the Ponzi game will soon be over.
Three cheers to Perry for having the guts to tell us that Social Security is a monstrous lie and a Ponzi scheme.
Walter E. Williams is nationally syndicated by Creators Syndicate.
During the recent GOP presidential debate Texas Gov. Rick Perry said that Social Security is a monstrous lie and a Ponzi scheme. More and more people are coming to see that Social Security is a Ponzi scheme but is it a lie as well? Lets look at it.
Heres what the 1936 government pamphlet on Social Security said:
After the first three years -- that is to say beginning in 1940 -- you will pay and your employer will pay 1.5 cents for each dollar you earn up to $3000 a year. ...
Beginning in 1943 you will pay 2 cents and so will your employer for every dollar you earn for the next three years. ...
And finally beginning in 1949 12 years from now you and your employer will each pay 3 cents on each dollar you earn up to $3000 a year.
Heres Congress lying promise: That is the most you will ever pay.
Another lie in the Social Security pamphlet is: Beginning November 24 1936 the United States government will set up a Social Security account for you. ... The checks will come to you as a right.
Therefore Americans were sold on the belief that Social Security is like a retirement account and money placed in it is our property. The fact of the matter is you have no property right whatsoever to your Social Security contributions.
You say Williams youre wrong! We have a right to Social Security payments. In a U.S. Supreme Court case Helvering v. Davis (1937) the court held that Social Security is not an insurance program.
According to the court the proceeds of both (employee and employer) taxes are to be paid into the Treasury like internal revenue taxes generally and are not earmarked in any way.
In a later Supreme Court case Flemming v. Nestor (1960) the court said to engraft upon the Social Security system a concept of accrued property rights would deprive it of the flexibility and boldness in adjustment to ever-changing conditions which it demands.
Belatedly the Social Security Administration is trying to clean up its history of deception. Its website (http://www.ssa.gov/history/nestor.html) says entitlement to Social Security benefits is not (a) contractual right.
The SSA adds that there has been a temptation throughout the programs history for some people to suppose that their FICA payroll taxes entitle them to a benefit in a legal contractual sense. ... Congress clearly had no such limitation in mind when crafting the law.
Thats the SSAs dishonesty. After all it was the people in that administration who said in their 1936 pamphlet that the checks will come to you as a right.
Theres more deceit and dishonesty. In 1950 I was 14 years old and applied for a work permit for an after-school job. One of the requirements was to obtain a Social Security card.
In bold letters on my Social Security card are the words For Social Security Purposes -- Not For Identification. According to the SSAs website this legend was removed as part of the design changes for the 18th version of the card issued beginning in 1972.
Thats a shameless unadulterated lie. Because were idiots were asked to believe that the sole purpose for the removal of Not For Identification was for design purposes.
The fact that our Social Security numbers were going to become a major identification tool had nothing to do with getting rid of the statement.
Aside from these lies Social Security is a Ponzi scheme. The major difference between Social Security and Bernie Madoffs Ponzi scheme is his was illegal. Three Nobel laureate economists have testified that Social Security is a Ponzi scheme.
Nobel-winning economist Paul Samuelson called it the greatest Ponzi game ever contrived. Milton Friedman also a Nobel laureate said it was the biggest Ponzi scheme on Earth. Paul Krugman another Nobel laureate predicted that the Ponzi game will soon be over.
Three cheers to Perry for having the guts to tell us that Social Security is a monstrous lie and a Ponzi scheme.
Walter E. Williams is nationally syndicated by Creators Syndicate.
