McCarthy On The SS Ponzi

More Social Security & Ponzi Schemes - By Andrew C. McCarthy - The Corner - National Review Online: "As a great admirer of your work, I’m very surprised by your claim that Social Security’s designers and perpetuators have not attempted to perpetrate a fraud. The program was hatched in fraud. As I pointed out yesterday, FDR pretended it was an insurance program in order to sell it to the public; once Congress enacted it, he then told the courts it was not an insurance program but a tax in order to get it upheld (by justices he had successfully intimidated with a court-packing plan). He later admitted that disingenuously portraying the tax as a contribution for earned insurance benefits was “politics all the way through.” The goal was never to make the economics work. As you correctly point out, they don’t work, and FDR was well aware of that fact. The goal was to make sure, as he put it, that “no damn politician can ever scrap my social security program.” Fostering a sense of public entitlement, he presciently reasoned, would induce politicians to position themselves as defenders of this entitlement — and never you mind the math.

Furthermore, the real objective of Social Security was not to set up a retirement insurance program. It was to lay the foundation for a full-blown entitlement state, complete with socialized healthcare. The original plan included a Medicare component, which was abandoned because FDR realized it would jeopardize passage of social security."

RTWT. It's an excellent summary of why SS is truly a Ponzi scheme -- and why the jack*ss that created it knew it.