Is Social Security REALLY a Ponzi Scheme?

Consider this: Bernie Madoff, a world class swindler and creator of the world's largest PRIVATE Ponzi scheme, went to prison. Just what did he do?

He talked people into investing with him. But he didn't invest their money. He simply took the money from newer investors to pay off older investors (when they asked for their money), and spent what was left over. Eventually there were not enough newer investors to pay the older investors's demands.

Next thing you know Madoff is one of the most hated men in America and he is off to jail.

Madoff did to his investors exactly what the government has been doing to us for over 70 years with Social Security. There is no meaningful difference between the two schemes; except that one was operated by a private individual who is now in jail, and the other is operated by politicians who enjoy perks, privileges and status in spite of their actions.

Here is a side-by-side comparison of Madoff's scheme and Social Security.


Takes money from investors with the promise that the money will be invested and made available to them later.

Instead of investing the money, Madoff spends it on nice homes and yachts.

When the time comes to pay the investors back, Madoff simply uses some of the money from new investors to pay the older investors.

When Madoff's scheme is discovered, all hell breaks loose. New investors won't give him any more cash.

Bernie Madoff goes to jail.


Takes money from wage earners with the promise that the money will be placed in a "Trust Fund" and made available later.

Instead of depositing money in a Trust Fund, the politicians use it for general spending and vote buying.

When benefits for older investors become due, the politicians pay them with money taken from younger and newer wage earners.

When Social Security runs out of money politicians simply force taxpayers to send more money.

Politicians remain in office, with perks.

"The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination." - Ronald Reagan

"If you put the Federal government in charge of the Sahara Desert, in five years there'd be a shortage of sand." - Milton Friedman


go to National Debt Awareness Center web site.