Glenn started off the radio show this morning by tackling the GOP debate from last night, and was especially in agreement with Rick Perry over his comments regarding Social Security. During the debate, Romney called the entitlement program a "Ponzi scheme". What did Glenn think?
"“It is a monstrous lie. It is a Ponzi scheme," Perry said during the debate. "“Anybody that’s for the status quo with Social Security today is involved with a monstrous lie to our kids.”
What is a Ponzi scheme? Glenn explained "It was an idea of a man in 1920 Charles Ponzi. He took the idea of fraudulent investing to a whole new level. This is the Bernie Madoff of 1920's. He promised his clients a 50% profit within 45 days.
100% profit within 90 days. All they had to have want to buy discounted postal reply coupons in other countries, and redeeming them in the United States. Mr. Charles Ponzi. Ponzi scheme. Ponzi was paying for his early investors with the money that was coming directly from new investors."
Essentially, those who view Social Security as a Ponzi scheme are saying that the government is essentially taking money from younger generations (new investors) to pay Social Security for older generations (early investors).
"There was no one forcing you to get involved in the Ponzi scheme when it was done by Ponzi. Now it's done by the government you are forced to get involved," Stu added.
"They can change the definition to anything they want. This is Madoff. This is Bernie Madoff in charge of the Social Security administration, and this isn't a Republican thing or Democratic thing. This is an American thing. We've all been in on it," Glenn said.
"It's a Ponzi scheme. If anyone else was doing it - if I were as Mercury (Radio Arts) doing it - I'd be arrested, and be in jail. Maybe it's time we hold the federal government to exactly the same laws they try to hold us to."