Gov. Perry’s Right About Social Security

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During the recent GOP presidential debate, Texas Gov. Rick Perry said that SocialSecurity is a “monstrous lie” and a “Ponzi scheme.” More and more people are coming to see that Social Security is a Ponzi scheme, but is it a lie, as well? Let’s look at it.

Here’s what the 1936 government pamphlet on Social Security said: “After the first 3 years — that is to say, beginning in 1940 — you will pay, and your employer will pay, 1.5 cents for each dollar you earn, up to $3,000 a year. … Beginning in 1943, you will pay 2 cents, and so will your employer, for every dollar you earn for the next 3 years. … And finally, beginning in 1949, twelve years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year.” Here’s Congress’ lying promise: “That is the most you will ever pay.”

Another lie in the Social Security pamphlet is: “Beginning November 24, 1936, the United States government will set up a Social Security account for you. … The checks will come to you as a right.” Therefore, Americans were sold on the belief that Social Security is like a retirement account and money placed in it is our property. The fact of the matter is you have no property right whatsoever to your Social Security “contributions.”

You say, “Williams, you’re wrong! We have a right to Social Security payments.” In a U.S. Supreme Court case, Helvering v. Davis (1937), the court held that Social Security is not an insurance program, saying, “The proceeds of both (employee and employer) taxes are to be paid into the Treasury like internal revenue taxes generally, and are not earmarked in any way.” In a later Supreme Court case, Flemming v. Nestor (1960), the court said, “To engraft upon the Social Security system a concept of ‘accrued property rights’ would deprive it of the flexibility and boldness in adjustment to ever-changing conditions which it demands.”

Belatedly, the Social Security Administration is trying to clean up its history of deception.

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  • BLJ

    Of course he is right. He is one of the few politicians with the guts to call SS what it is.

  • nyc1234

    At least he has the strength to state the truth…Occasio Ultima…
    http://www.youtube.com/watch?v=LB05kIasL80

  • Amused

    State the truth ? Truth is Social Security works , the problem is politicians have helped themselves to the piggy bank to the tune of One Trillion dollars ,of IOU's ..
    Let Perry run on that as part of his platform , and you will guarantee an Obama victory .This is just another Teabagger meme for the parrots to repeat .

  • StephenD

    Amused you had me until you bad mouthed the TEA Party. “Taxed Enough Already” folks would agree with you that the problem is that politicians, A.K.A. Government, has helped themselves to it. The truth is it COULD have worked. The money put in should be paid out…as a RIGHT. I agree. That doesn't mean it is wrong to say it has become a Ponzi Scheme. How to safeguard against this? Expect the government; the ones robbing it now, to guard it? No, the way to do it is to revamp it entirely. The fact is, if the folks that put into it had instead bought their own IRA's they'd have double or triple what they'll get from SSI. Perhaps an option to participate after the re-write will work best. If it isn't a Ponzi Scheme, the number of participants shouldn't matter.