Social Security & Medicare - Where Does the Money Come From?

I was listening to a guy on talk radio today - I don't recall his name but he was filling in for Rush Limbaugh (a.k.a. El Rushbo!). Anyway, he asked the rhetorical question: "Where does the money for Social Security and Medicare come from? The Tooth Fairy or Santa Clause?"

Then he answers his own question by saying, "No, it comes from some other American!"

I know many will object to this. They will say that workers pay into Social Security today and they will get the money back when they retire. In other words, the theory goes, they are really getting back their own money.

It sounds good. But then most pyramids and ponzi schemes sound good at first glance.  The fact is that Americans who are paying into Social Security today are not going to see any of that money come back to them - especially if they have 10 or 20 years until they retire.

Of course, by that time America will be a socialist utopia where everything is free and no one has to have money anyway, so it is a mute point (And if you believe that, I'll buy you a one way ticket to Cuba!).

See Social Security IS a Ponzi Scheme, by Judge Andrew P. Napolitano



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