Armchair Economics - Why Social Security and Medicare Comprise the Largest Ponzi Scheme In History

Unless you've been living in a box for the last 5 or so years, you've heard all the complaints thrown around about Social Security and its inevitable failure. The government forced upon us this entitlement that we don't ask for that's supposed to provide us with some money when we get old. This is a brief overview of the utter failure of this unwanted entitlement.

Many people I've talked to don't even understand how this horrible system works. They seem to think that the money you pay in FICA goes into some "account" that you have access to later in life. This could not be further from the truth. Essentially, Social Security and Medicare comprise the largest Ponzi scheme the world has ever seen, in which the youth of today are supposed to pay for the retirement of the current elderly, as well as wars, welfare, and corporate bailouts. The problem that has been pointed out recently is the fact that life expectancy, as well as the American population, has increased drastically, and will continue too. People aren't dying, and we can't afford to pay them anything. The government refuses to pay anything because they've spent it all. The more victims that get sucked in, the larger the entire Ponzi scheme becomes. The system takes in more than it can pay out. Currently Medicare is responsible for a $36 trillion unfunded liability, and Social Security's is $8 trillion.

Do not fear, however. The brilliant Democrats have a plan! In a nutshell, their proposed solution to avert insolvency is to dump more money into the failing system, thereby increasing its magnitude. They want to tax the youth until the economy crashes further, and, if not, they'll just print so much money to where it's not even worth the paper it's printed on.

If he answered honestly about the system, I can see President Obama shrugging and borrowing the words of Bernie Madoff:  "The money's all gone."

 A bit from FBN about this issue: