Rick Perry Backs Off Social Security 'Ponzi Scheme' Comments

WASHINGTON -- Texas governor and Republican presidential candidate Rick Perry recently walked back his claims that Social Security is a "Ponzi scheme," but other Republicans have made similar statements in recent months, saying the entitlement program is a "scheme" to take money from the American people.

Perry has previously taken a hard-line stance against Social Security. In his 2010 book, "Fed Up!" he suggested the program was unconstitutional, put in place "at the expense of respect for the Constitution and limited government." He also wrote that Social Security is "set up like an illegal Ponzi scheme."

Perry has since backed off. His spokesman, Ray Sullivan, told the Wall Street Journal Thursday that the book was not meant to reflect the governor's current views on Social Security.

“The governor wants to see the benefits for existing retirees and those close to Social Security be strongly protected,” Sullivan told the Wall Street Journal, when asked about Perry's current stance.

Yet others in Perry's party have also used the line in recent months. Democratic sources are passing around statements made by Reps. Jeb Hensarling (R-Texas), Reid Ribble (R-Wis.), Todd Young (R-Ind.), and Joe Heck (R-Nev.), all of which refer to Social Security as a Ponzi scheme.

Hensarling, the House GOP Conference chairman, said in April that Social Security would bankrupt future generations.

"Let’s remember again the main drivers of this national debt are three large entitlement programs, programs that have been of great comfort and assistance to my parents and grandparents but they’re morphing into cruel Ponzi schemes for my 9-year-old daughter and 7-year-olds," he said on MSNBC's "Morning Joe."

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In fact, Social Security is decades away from running out of money, and would remain solvent for the next 75 years if all earnings were subject to the payroll tax and the base was retained for benefit calculations, according to the Congressional Research Service.

Freshman Reps. Young, Heck and Ribble have also compared Social Security to a Ponzi scheme, arguing it should be phased out over time.

"I envision a shift in how that system works so that by the time you get there you’re not only responsible for your own but we’ve made tax law available to help you be responsible for your own, and that the government can’t take that money from you and give it to somebody else," Ribble said at a candidate forum last November. "That is in fact a Ponzi scheme."

Heck, meanwhile, called Social Security a "pyramid scheme" at a forum in May. He then backtracked, issuing a flier saying he "chose [his] words poorly," the Las Vegas Sun later reported.

Young told supporters in June that the government had been raiding the coffers of Social Security.

"Social Security, as so many of you know, is a Ponzi scheme," Young said at an event. "We pay our payroll taxes, it says it's going to Social Security. 'Oh, I must have an account up in Washington that has my name on it.' I'm sorry, ladies and gentlemen, they've been raiding that for years."

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Comments

[mandalay007]

11:55 PM on 09/07/2011

I don't care how Rove or anyone does it-----Perry just needs to be destroyed-------

[Francis Egan]

10:38 AM on 08/23/2011

The U.S. is building a new aircraft carreir, this carreir will need a home port, why not share a port already here. If a state wants a new port in there own state leave them pay the cost with state tax money only. How that for an idea to cut defense budget cost.

[nazztea]

02:48 PM on 08/22/2011

Perry for Prez

http://blog.chron.com/nickanderson/

[taurus7125]

10:05 AM on 08/22/2011

I agree with Rick Perry, the social security is being run like a ponzi scheme, we put the money in and the government takes it out for other needs and people that NEVER contributed to it are getting some of OUR monies . I think the only people that should be in the federa lretirement system are the postal workers and those in the military, all the rest that means congressmen, senators, members of the house should be in the social security system that way we will be assured it will never be in financial trouble.

[pjvoperamom]

09:03 AM on 08/22/2011

"Social Security, as so many of you know, is a Ponzi scheme," Young said at an event. "We pay our payroll taxes, it says it's going to Social Security. 'Oh, I must have an account up in Washington that has my name on it.' I'm sorry, ladies and gentlemen, they've been raiding that for years."

This is for all the people who said that the government did not use SS money for their own gain. So many posted against my comments, so read and realize that even they admit this has been done. So how do we get this back? Every dollar made by every worker, including people who work in government needs to be taxed. No more tax cuts for the wealthy and take the cap off who pays SS taxes per year. We need for our own government to live like the rest of us do. Taxed beyond belief.

[bubwalt]

02:39 PM on 08/22/2011

People in government service have been paying into SSA. Prior to that, they had their own system.

[semo539]

10:00 PM on 08/21/2011

The gov't has been borrowing from Social Security since the 1970's to balance the budget and as far as I know has never paid a penny of it back.... .

Where did all THAT money go?

[nazztea]

02:51 PM on 08/22/2011

Bunch of bridges to nowhere, airports few people use, that sort of thing.
I wonder if the raid on Social Security funds is some sort of automatic deduction, or if it has to be reauthorized periodically?

[Don Clanton]

07:02 AM on 09/08/2011

NOT TRUE. And where, pray tell, have you found the "balanced budgets" of the 70's??? Faux News?

[dak3110]

08:58 PM on 08/21/2011

rick perry don't sound like a vote to me. I started working at age 16, they took out tax, I am now on S.S. Leave my money alone, this is my money.

[Kathi Ryan]

07:13 AM on 09/09/2011

Couldn't agree with you more!!
Your money, my money because it came from OUR paychecks....At least it is reasonable for me to expect the money I put into my savings account will be available for me and with interest!

[Lindasmithsart]

04:33 PM on 08/21/2011

Right now social security is solvent up to 2030 or at least it was until a few months ago. Disabilty has no business being tacked on to social security. let the goverment handle that But not out of the Old folks monies. It seems we are dumping grounds for indigents drug addicts ,mentally ill and every other malady and excuse that can bleed out our funds. It is not the old peoples responsiblity to take care of the whole countries maladies and ills !!!!!!!!!!!!! People let this government know that the rich international corporations are exploiting us by not paying ANY Taxes and bleeding our tax funds through frivious substitied for their jets and other perks to the tune of billions and billions. Kick em out this fall

[aburch9351]

06:47 AM on 08/22/2011

i think you are preaching to the choir in other words we get it to butt washington don,t
I think we all know of at least one person who does not belong on s.s. ssi. or any govt disabilty program if they would do their job get the free loaders off [ but dont throw baby out with bath water] there are people who really deserve and need these programs. there are 4th generation people on public dole get them off and put the healthy to work.

[Lindasmithsart]

04:24 PM on 08/21/2011

Rick Perry is as far away from fairness as the sun is from the earth and he will say anything to get elected. I will take his first word on the issue. If by some remote error on the judgment from the American people and he somehow manages to slip in, you can be assured social security will be the first thing he attacks..

[walkonsatisfied]

03:02 PM on 08/21/2011

Today's thread brought to you by Millie Lou. Because when you pound away your baseless point enough, it gets through.

[leslieowenct]

02:04 PM on 08/21/2011

If you want to see evil all you have to do is look at Perry's eyes. They are the window to no soul!

[jzannoni]

09:35 AM on 08/21/2011

How and when did social security become an entitlement program that is driving our debt. We all pay into the system and take it out in the end. The fact that the politicians decided to spend this money rather than set it aside is where the debt is. They borrowed our money and the debt now is that we owe ourselves money that they borrowed from us to do other things.|Get is straight GOP'ers

[MillieLou]

11:16 AM on 08/21/2011

Yes, you pay into the system, but at the end you do not take out what you paid in. That's because it isn't there. When you pay in, they use that money to fund other things. There is no social security trust fund. Your children and grandchildren will pay taxes to finance your social security. This is why it is being called a ponzi scheme. And when you blame Republicans for this state of affairs, you are denying reality. It is liberal Democrats, not Republicans, designed these social welfare programs. Yes, certain RINO Republicans have aided and abetted them. But by and large, it is Democrats who are responsible for decades of entitlement programs for which we must now pay the piper but cannot.

[Mikdow]

12:30 PM on 08/21/2011

Poster Gaspar Ramsey informs us that the SS trust fund is filled with 2 trillion dollars in treasury bonds.

That is legal debt. It is coming due and it must be paid. Why do you think it is ethical to renege on one's debts?

[bubwalt]

02:45 PM on 08/22/2011

Gee, for many years I paid into the system. We paid for the old folks and did not cry about it. Now that several president raided the coffers, we want to forgive them by screwing us? Not realistic solution!

[Carolab]

04:36 AM on 08/21/2011

Social Security is funded by a SEPARATE PAYROLL TAX and is therefore not part of the general budget revenues.

[Carolab]

04:51 AM on 08/21/2011

It was merely put on the books and accounted as part of the general budget under LBJ.  It is NOT part OF the general budget but the money has been stolen and used as though it were in order to cover the shortfalls in revenues created by the tax cuts for the rich and in order to pay for those GD wars.

The issue NOW is the ba-stards don't want to pay it back.

Well, F U C K them.  That is OUR money and I personally have been getting statements from SSA for the last decade telling me what my benefits are at age X, Y or Z.

That is MY money and I paid into the system with the understanding that those benefits are what I will receive.

[MillieLou]

11:21 AM on 08/21/2011

Carol,
And who do you think stole the money? By and large, not Republicans. Democrats are responsible, going back decades, for the enormous social welfare entitlement programs we are required to finance through taxation. The money paid into Social Security was spent on other purposes, i.e., other entitlement programs the Democrats love so much. Such programs are nowhere authorized for the federal government by the Constitution. Supporting a military IS authorized as a legitimate function of the federal government. The Democrat Party operates on policies that fall outside the bounds of the Constitution and which simply are not affordable either here or in Europe. Both places are failing economically because of the ponzi scheme called socialism (= social welfare).

[Don Clanton]

07:09 AM on 09/08/2011

I am fanning you simply for stating the obvious truth. I am faving you for clarity and brevity.

[rowdiman]

09:30 PM on 08/20/2011

Well I guess a Republican Governor from Texas would recognize a Ponzi when he saw one.

All is good, Rick. I'm sure no one will bring this up again.

[MillieLou]

11:22 AM on 08/21/2011

Which Ponzi scheme is it that Governor Perry should recognize? Please explain.

[rowdiman]

06:13 PM on 08/21/2011

His candidacy. Ponzi schemes are fraudulent investments promising high returns with little risk to the investors.

When you promise voters as Governor you will secede from the union, and then turn around and run for President of the entire country; that is fraudulent and high risk to the voters.

[kcin]

06:53 PM on 08/20/2011

"...the book was not meant to reflect the governor's current views on Social Security."

Huh? Then pull the book. Kinda misleading to write a book that says one thing when you believe the opposite.

"...Let’s remember again the main drivers of this national debt are three large entitlement programs..."

Republicans are never encumbered by the facts. They tell a fictional story, repeat it ad nauseum, and pretend it is true.

The fact is that Social Security operates at a profit. Not one cent of our national debt is due to Social Security. Instead, Social Security has purchased government bonds with its surplus and the government has spent that money on Iraq, Afghanistan and 30 years of tax breaks for the wealthy. Social Security still holds the bonds which means it still has the money. That is, unless the T-Bags decide we will no longer pay our debts.

Medicare and Medicaid need to be fixed by changing from a private, for profit, Health INSURANCE system to a publicly managed, single payer, Health CARE system.

We currently have the most expensive medical care in the world. Yet, we are only 50th in the world in life expectancy and 46th in the world in infant mortality. In short, we pay more and get less.

But either way, the single largest expenditure in our budget, bigger than Medicare and Medicaid combined, is Defense.

[MillieLou]

11:31 AM on 08/21/2011

Your post fails to mention the enormously expensive social entitlement programs that have been ever-increasing by Democrats going back many decades. Those things far outweigh any other federal spending. And the reality is that Social Security funds have been spent on other purposes. They are financed by what is being paid in now. There is no trust fund for them. Also, regarding the Tea Party -- in spite of your insulting comments that don't actually offer any intelligent argument, Tea Party members do not wish this nation to go into economic oblivion. They wish the federal government to live within its means. Gee, what a concept. As to Defense, that is a legitimate role for the federal government as expressly stated in the U.S. Constitution. You will find nothing regarding social welfare programs expressly stated in the U.S. Constitution. So why are you criticizing Defense spending, when that is the legitimate role of the federal govt. but social welfare programs are not? Look, conservatives believe that the federal govt. should be limited. The individual states should decide for themselves how things are to be done within their own state, as given in the Constitution. That is the difference between conservatives and liberals in a nutshell. It has nothing to do with "mean ole Republicans" who don't care about the poor. That's ridiculous.

[leslieowenct]

01:55 PM on 08/21/2011

And where do you think the states will turn when they have a disaster and they need help?

Each state for itself is as ridiculous as each man for himself as we do not live alone in this country.

It might serve you well to remember..."We, the People" is not a singular statement!

[Robert SF]

04:27 PM on 08/21/2011

The federal government is the people's only defense against backwards, repressive state governments. In theory, federalism sounds good; in the practice, states have merely used it to commit human rights violations.