Paul Ryan Supports Rick Perry: Social Security Is A Ponzi Scheme

WASHINGTON -- Speaking on conservative radio on Tuesday, Rep. Paul Ryan (R-Wis.) agreed with Texas Gov. Rick Perry's (R) claim that Social Security is a "Ponzi scheme."

When asked by host Laura Ingraham on Tuesday whether the country's social insurance program is a Ponzi scheme, Ryan replied, "That is how those schemes work."

"So if you take a look at the technicality of Ponzi -- I would -- it's not a criminal enterprise," he said, according to a transcript. "But it is a pay-as-you-go system where ... earlier investors or, say, taxpayers, get a positive rate of return and the most recent investors -- or taxpayers -- get a negative rate of return."

Democrats immediately criticized Ryan's comments.

"Republican Budget Committee Chairman Paul Ryan's belief that Social Security works like a Ponzi scheme proves -- once and for all -- that House Republicans have really declared war on seniors," said Jesse Ferguson, a spokesman for the Democratic Congressional Campaign Committee, in a press release. "A Ponzi scheme is Bernie Madoff ripping off Americans -- not Social Security benefits that seniors earned and depend on during retirement."

Ponzi schemes, made famous in 1920 by Charles Ponzi, are predicated on delivering large returns to investors with money received from new investors. The Securities and Exchange Commission definition of a Ponzi scheme is, "an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors."

Perry called Social Security a Ponzi scheme in his 2010 book Fed Up!, and he defended the characterization in a Sept. 7 GOP presidential debate.

Since then, some Republicans have come out in support of the governor, including Indiana Gov. Mitch Daniels (R) who said, "As far as it [Social Security] goes, absolutely it is a Ponzi scheme."

Additionally, this past June, Reps. Pete Sessions (R-Texas) and Jeb Hensarling (R-Texas) introduced legislation that would allow workers to partially opt out of Social Security immediately and fully opt out after 15 years.

Comments

[rotorhead1871]

10:45 PM on 10/01/2011

So if you take a look at the technicality of Ponzi -- I would -- it's not a criminal enterprise," he said, according to a transcript. "But it is a pay-as-you-go system where ... earlier investors or, say, taxpayers, get a positive rate of return and the most recent investors -- or taxpayers -- get a negative rate of return."

ADJUST YOUR HEADLINE...HP..its pay as you go!!, and if the politicians would keep their hands off the trust fund..SS would be in much better shape.

[dmsdzinr]

09:08 AM on 09/22/2011

Proof positive that Ryan is just as ignorant as Perry.

[theexperimentisfinished]

07:20 PM on 09/21/2011

you know who else consideres Social Security a Ponzi scheme? your hero Paul Krugman

http://www.bostonreview.net/BR21.6/krugmann.html

[MekhongKurt]

06:56 PM on 09/21/2011

I WANT them to keep calling it a Ponzi scheme. It makes that "Shining City on the Hill" recede further and further away on their distant horizon -- Washington.

[layman]

05:07 PM on 09/21/2011

Paul Ryan makes his living by being a corporate parasite, stooping to be a low life.

[garboop2]

04:56 PM on 09/21/2011

There are 2 repubs. to look out for: Perry and Paul Ryan. Proof has it that Perry has lead others to higher places (does quick-pro-quo come to mind?). Many of my relatives are die-hard reps, can't stand the man. Then there is Paul Ryan from WI. In Wisconsin right now, almost no one trusts him, calling what's happening there, Wisconsin's Watergate. Would the words of either one of these two?

[Lawrence Grant]

04:20 PM on 09/21/2011

I bet Ricky Perry really appreciates your support on the matter Ryan. Support something that Perry has already back paddled on. Way to keep up with current events, TEAPUBLICAN TOOL. Go back under that bridge and start finding ways to prop it up, because your other buddies in congress don't care if it falls on you.

[annyp]

04:14 PM on 09/21/2011

To him, I would guess, Medicare is the same Ponzi scheme.

[Whogivesafox]

03:43 PM on 09/21/2011

Time for the Young Guns to ride into the sunset.

[jazzylyn]

03:26 PM on 09/21/2011

Of course he does they're the dumb and dumber kids !

[MimiGardner]

02:54 PM on 09/21/2011

Ryan and Perry seem to think if they repeat the same lie over and over again, people will believe it.

[Whogivesafox]

03:44 PM on 09/21/2011

All Republicans believe that, it fact, it's Fox News' business model.

[AuntInAZ]

05:19 AM on 09/22/2011

I actually don't think all Republicans believe it. Unfortunately enough do to keep this lie circulating over and over dragging even more people into their beliefs...

[MekhongKurt]

06:59 PM on 09/21/2011

MimiGardner, they think it because it's true.

The Nazi Minister of Propaganda, Josef Goebbels, understood this brilliantly, and often counseled exactly that: "Repeat the lie often enough, and people will come to believe it."

That's also the underlying premise of George Orwell's doublespeak in "1984."

[TheAngryGent]

02:50 PM on 09/21/2011

I thought Michele Bachmann was a terrifying prospect for president, but Perry takes it to a whole new level. He makes George Bush look like a wimpy New York liberal. He'll literally dismantle government until we're being run by crooked politicians and greedhead corporations. My only hope is, after a year or two of Perry as President, and chants of "four more years" beginning to gain volume, maybe we'll finally realize realize how broken this Great Society is, and take some proactive steps to fix it for the better. More: http://theangrygentlemen.blogspot.com/2011/08/rick-perry-scares-be-jeezus-outta-me.html

[camelias and sweet tea]

02:33 PM on 09/21/2011

It is amazing that when Ryan's father passed away, he collected social security under that same so-called Ponzi scheme...that is what sent him to college. Looks like he did not learn much though.

[Whogivesafox]

03:45 PM on 09/21/2011

He learned to get his and to heck with everyone else.

[camelias and sweet tea]

03:47 PM on 09/21/2011

Yup, the ponzi scheme worked well for him, who cares about us.

[AuntInAZ]

05:20 AM on 09/22/2011

That's the norm with those of his ilk, I've got mine who cares about yours, and do as I say, not as I do. It's their mantra.

[zatonoichi]

01:48 PM on 09/21/2011

Paul Ryan is a complete package. He is an all-inclusive sack of radical rightwing bullshytt, containing everything that has gone so wrong in America. In Paul Ryan, you've got the insatiable greed, the breathtaking hypocrisy, the shameless mendacity, the smarmy cowardice, the self-serving narcissism, the willful ignorance, and the toxic bigotry, all contained in one loathsome pile of political excreta.

[sotiricon]

01:29 PM on 09/21/2011

SS should be phased out. Government mismanagement is very obvious and predictable. The fund has been looted (what do we call that?). Government has specific functions ... these are very difficult in themselves ... the people's "pension" program is not one of them.

[iskra]

01:43 PM on 09/21/2011

Yeah because the private scheme that was in place for 150 years prior to that did such a good job of creating a senior class living in abject poverty with no hope.

[sotiricon]

04:33 PM on 09/21/2011

Great Depression was created by government. The current depression is created by government. The fall of Calif, Greece, NY, Europe ... government. The major social issue ... not drugs, not education, etc. ... government.

Freedom from government, government doing what it's supposed to do ... abundance for all.

[Whogivesafox]

03:46 PM on 09/21/2011

You must be a public "servant"