31st August 2011
Michael Tanner knows that, Rick Perry knows that, anybody with a brain and ten fingers knows that.
As with Ponzi’s scheme, this turns out to be a very good deal for those who got in early. The very first Social Security recipient, Ida Mae Fuller of Vermont, paid just $44 in Social Security taxes, but the long-lived Mrs. Fuller collected $20,993 in benefits. Such high returns were possible because there were many workers paying into the system and only a few retirees taking benefits out of it. In 1950, for instance, there were 16 workers supporting every retiree. Today, there are just over three. By around 2030, we will be down to just two.
But liberals can’t afford to admit it, because then it stands revealed that there is no functional difference between the Federal government and Bernie Madoff, except that you can’t send the government to jail. Pity, that.