Don’t You Dare Call It a Ponzi!
Governor Perry referred to Social Security as a “Ponzi scheme” and the Left went ape. Somehow, they think it’s nuts to refer to Social Security as a Ponzi arrangement, even though their own darling, Paul Krugman, has said it has a “Ponzi game aspect.” So is it a Ponzi scheme, partly a Ponzi scheme, or not remotely a Ponzi scheme?
Robert Murphy breaks down the Ponzi elements and examines them. It’s worthwhile reading, if you want to understand the Ponzi concept and how it relates to Social Security. For me, I’m less willing to refer to Social Security as a Ponzi scheme, since it’s not as “cut and dry” as I previously thought. On the other hand, it’s clearly not nutty to refer to it as a Ponzi scheme. It has more Ponzi-like attributes than not.
The article also has a common sense defense of the much-maligned (and pictured above) Charles Ponzi:
… Read the rest
It’s true that Ponzi engaged in fraud; his victims never would have “invested” with him, had he accurately explained the business model. Libertarians therefore agree with everybody else that Charles Ponzi was a criminal and would have to face legal consequences in any just legal order.
However, so far as we know Ponzi never threatened anybody. He didn’t tell struggling young workers, “Give me 15 percent of your paycheck every week, so that I can