SOCIAL SECURITY A PONZI SCHEME? Just because someone call a cat a rat does not mean it is a rat. Perry said Social Security is a Ponzi scheme and FOXNEWS grabbed it like a dog with a bone and ran with it. Social Security is not a Ponzi scheme and those who call it such dont know what a ponzi scheme is. Social Security is no where near the Ponzi scheme Madoff played. A Ponzi scheme is a fraud in which money from one group of people is used to pay promised returns to another group of people. The money isn't invested, it's just transferred, and at some point the scheme collapses because there's not enough income to satisfy withdrawals. http://money.cnn.com/2009/01/06/news/ec ... /index.htm Social Security has a surplus of $2.6 trillion. People pay into Social Security and they receive payment in return. Nay Sayers that say Social Security will not be there for our children are jut fear mongering to gain support for privatizing it. Not even that but to receive votes in 2012. If Social Security is going broke nothing will save it. As long as people are paying into it, it will be there for future recipients. Other scare mongering is having to raise the retirement age and cutting the benefits. Then some will die and never collect on the money they paid into the program and cutting benefits with raising medical, cost of living is not an option that future retirees are looking forward to. Social security is secure for the next generation. 401 accounts an option for future retires? Now that a Ponzi scheme.