September 7, 2011 9:38 PM

Rick Perry stands by calling Social Security a Ponzi scheme

By
Stephanie Condon
Topics
Campaign 2012
Rick Perry (Credit: AP Photo/Jae C. Hong)

In spite of warnings from his fellow Republicans that calling Social Security a "Ponzi scheme" would be polarizing in the presidential contest, presidential candidate and Texas Gov. Rick Perry on Wednesday stood by his remarks.

"You cannot keep the status quo in place and call it anything other than a Ponzi scheme," Perry said at a Republican debate in California. Acknowledging that several have called his remarks controversial, he added, "Maybe it's time to have some provocative language in this country."

Perry called the popular federal program a Ponzi scheme in his 2010 book "Fed Up!" and his views have come under scrutiny since he entered the presidential race last month. Most recently, Republican strategist Karl Rove said Perry's take on Social Security will prove "toxic" in the 2012 election. Former Vice President Dick Cheney also said recently it was inaccurate to call the program a Ponzi scheme.

The Texas governor pushed back against both Bush administration officials.

"You know, Karl has been over the top for a long time in some of his remarks, so I'm not responsible for Karl," he said. He added, "If Vice President Cheney or anyone else says the program we have in place today [is sound]... that is just a lie."

Presidential candidate and former Massachusetts Gov. Mitt Romney was ready to attack Perry's stance, issuing a release to the media with a list of statements from Perry criticizing Social Security.

"Our nominee has to be someone who isn't committed to abolishing Social Security but to saving Social Security," Romney said in the debate. "We keep the program and we make it financially secure... Under no circumstances would I ever stay by any measure it's a failure. We've got to keep it working."

Mitt Romney, Rick Perry spar early at GOP debate


Add a Comment See all 53 Comments
by jgg000101 September 10, 2011 1:07 AM EDT
funny that chris matthews agrees that social security is a ponzi scheme. It's true. The younger generations will pay for the older generations until the money runs out. It's great while the money is there, just ask bernie madoff.
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by notreich September 11, 2011 11:47 PM EDT
It's funny that you would say that because it's not true.
by readg821 September 9, 2011 9:44 PM EDT
For those candidates running for President, can you return to a long ago lesson on Propaganda? I believe we were taught to stay away from sweeping generalities, using biased statements as well as avoiding the facts. It is remarkable how some candidates ignore science and economics with controversial comments and one-liners.You take away from serious problems and issues that need careful and thoughtful consideration. This former English teacher would have to give SOME of you F+
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by carolo43 September 9, 2011 8:57 PM EDT
Perry is a mess. Doesn't he realize that social security keeps old people in their home and pays their utility bills and Medicare helps pay their medical bills? Without social security, every old person would have to move in with their children and it would be up to them to support their parents for the rest of their lives. Or even worse, have the bill to pay to keep them in a nursing home. Social Security has been around for 70 years because it works!
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by sharky77 September 13, 2011 1:56 PM EDT
Don't you realize it is the people working that pays into the lovely Social Security that even supplies the money for anyone? Don't you realize not only has the US Government raided the heck out of Social Security that the only thing sitting in there are Us Treasury Bonds aka IOUs, but other people, people not needing Social Security yet, are also raiding it to claim some sort of money. This is exactly one of the reasons why Gore called for a locked box idea, and why even economists during Clinton and Bush's terms called for a partial privatization of Social Security. If you relish Government in complete control, can make all the rules regarding Social Security and your money being paid in, to where you actually do not even have a right to that money, then good on ya.
by moretruthnow September 9, 2011 12:23 AM EDT
Rick Perry is an idiot with his hateful book and with his ignorant talk that only appeals to the tea party morons and the republican billionaires that will be funding his campaign. America has good programs that will continue to be good programs as long as the republicans leave them alone. Democrats will make sure they are funded and that they are there for all of us and for the future. If our two parties don't start being honest and working together for us they should be voted out of office. Right now the congressional republicans that were voted in are rabid Rush Limbaughs and Glen Becks and are not doing the job they are supposed to be doing which is helping the country recover and creating jobs.
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by wndtalker September 8, 2011 10:11 PM EDT
Okay here we go. Another stupid, emphasize stupid politician mouthing off about how much we pay our own citizens who have paid into this system most of their lives. While I probably have not worked every year of my life I'm speaking for those who did. If you would quit giving away our money and food stamps to illegal aliens, quit supporting every little country that has a disaster, man made or otherwise, there'd be plenty of money to go around. How many millions of dollars has any country sent to help the victims of Hurricane Irene. How about Hurricane Katrina. And how about Hurricane Lee. Or the disaster that befell Joplin Missouri.
Did you know people in Joplin are being told they can't qualify for aid from our government because we're out of money. But let there be a disaster in some other part of the world and guess what?!!! All of a sudden there's money !!!! Wake up America, its time we took our country back. Fire these politicians that are looking out for their own backsides. Barrack O'bama is no better than anyone else. Where's the American flag O'bama. This is the United States of America Our children died defending that flag. And you sir have the guts to take it down?!!!!! I can't stand you. You are cattle dung. And to think I believed in you and voted for you Never again. You are a traitor
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by moretruthnow September 9, 2011 12:13 AM EDT
That is not true about Joplin Missouri. They are getting the funding they request from the government and were declared a disaster area. There is always funding provided for Americans who are victims of storms like in Joplin. You are the treasonous traitor wndtalker. You are the hate that America needs to get rid of. We are a good nation but too many are full of the hate that you have. It is disgusting.
by John_Steinsvold September 8, 2011 9:43 PM EDT
An Alternative to Capitalism (if the people knew about it, they would demand it)

Several decades ago, Margaret Thatcher claimed: "There is no alternative". She was referring to capitalism. Today, this negative attitude still persists.

I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:

http://evans-experientialism.freewebspace.com/steinsvold.htm

John Steinsvold

Perhaps in time the so-called dark ages will be thought of as including our own.
--Georg C. Lichtenberg
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by lukasz___2000 September 8, 2011 12:06 PM EDT
I think that the social is necessary. I am of the belief catholic, libertarian nacionalist-socialist.
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by 2BadPpole September 8, 2011 10:55 AM EDT
The question should not be if he is wrong, but will the american people agree and vote for him over Hussein?
Reply to this comment
by moretruthnow September 8, 2011 6:04 PM EDT
We don't have Hussein do we? We have President Obama who along with Democrats are the only people who give a darn about honesty in America. What is your middle name tadpole?
by 2BadPpole September 8, 2011 10:50 AM EDT
I guess repeating George Bush's act will get him elected! Stay simple and straight shooter!

Good Luck with the largest voting block!

AARP
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by troopf4 September 8, 2011 4:37 PM EDT
AARP sold it's members down the river and sucked up to Obama, not a word from AARP when 500 billion was taken from Medicare. AARP is in the business of making money - do you really think they care about seniors? When did turning 50 make you a senior - it's about pumping up their membership to haul in more money..
by moretruthnow September 8, 2011 6:19 PM EDT
President Obama has not failed. He worked hard and was successful in many ways to help Americans, but when the most rabid republicans like GOP Senate leader Mitch McConnell were always there with his filibusters opposing everything. A majority of republicans stood against any help for the middle class. It was therefore impossible for many good policies to move past the GOP in the Senate. The GOP did nothing but oppose everything that would benefit the country. They were always against solutions and help for Americans. The GOP failed the country the whole time they agreed with every policy of Bush and Cheney that harmed the country and sent us further and further into debt.
by Lindag10 September 8, 2011 10:37 AM EDT
He sure likes dancing on the "Third rail" of politics. If he thinks alienating people on Social Security and those nearing the age when they'll start receiving the benefits they're paid into their entire working lives will get him elected, he's crazy.
Reply to this comment
by witchrunner September 8, 2011 1:27 PM EDT
Lindag: Really? Do you really think that just because someone reaches retirement age that means they are stupid? Most people do understand that the current system is unsustainable. In fact, most young people realize that if something isn't done, it won't be there for them. Pointing out the facts is not alienating anyone. When SS started out, it took over 40 workers to pay the benefits for one retiree. Now, it takes about 3.5 workers to pay the benefits of one retiree. With 1/2 of the baby boomers still to start receiving benefits over the next 9 years, it doesn't take a genius to figure out that it is going broke. Do you really want your politicians to lie to you about the state of affairs, so you can pretend everything is just hunky-dory?

Heck, it's just like Obama talking about our country's finances being just fine, or that he is working on reducing the deficit. Neither is accurate, but because that's what you like to hear, you're fine with it?
by Lindag10 September 8, 2011 5:12 PM EDT
Witch: you need a course in reading comprehension. I merely observed that Perry's attitude would alienate voters, not that there was nothing wrong with Social Security as it is now. The problem is the program has been robbed by politicans of both parties and needs to be fixed in order to be sustainable. I feel that since so much of the people's money has been invested in it, efforts should be made to correct the issues and make it sustainable. Privatizing Social Security as the Republicans want will only lead to people being bilked of the money they're given to invest in retirement plans. I shudder to think of how many people would be ripped off by the inevitable "investment managers" that would appear to "help" with retirement. The vast majority of Americans are not economists and therefore wouldn't be able to manage a retirement fund. So they would turn to "professionals" to deal with that and of course many of those would be only too willing to steal their funds.
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