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NUGENT: Social Security is a Ponzi scheme, only worse

Young Americans won’t get a penny for retirement unless system changes

- - Wednesday, September 21, 2011

My good Gov. Rick Perry is spot-on, again. Social Security has much more in common with a criminal enterprise known as a Ponzi scheme than not. As I stated in "Ted, White, and Blue: The Nugent Manifesto," this scam is anti-social and insecure.

The Democratic fear-mongering machine is on a full-tilt boogie to scare the elderly into believing that Mr. Perry wants to throw them out in the street. Nothing, of course, could be further from the truth, but no one with an ounce of brains has ever thought truth was a core value of the Democratic Party or its media. Dishonest scare tactics and modern-day economic slavery are the hallmarks of the Democratic Party.

When elected president, Mr. Perry won't order the Treasury Department to stop mailing out Social Security checks to the elderly. What he is going to do is revamp the program so that future generations of Americans aren't subjected to the same Ponzi-scheme-like fraud that has been forced on retirees.

Social Security is like a Ponzi scheme in that it relies on the money provided by those of us still working to pay the benefits of those who are retired. It is a classic illegal pyramid scam. When the pool of Social Security recipients becomes as large as the group providing the benefits, the Ponzi scheme comes crashing down. And that's basically where we are.

Furthermore, there is no Social Security "trust fund." Our politicians have plundered and pillaged the money that was supposed to be used for Social Security. To put it simply, they stole the cash and used it to pay for other things. If a business operated in such a way, the owners would be put behind bars for any number of crimes.

We shouldn't concern ourselves with how to shore up Social Security but rather how we can wean ourselves off of it.

I've been shouting for years that Social Security is a giant scam for young people. Any of you under the age of 45 who are planning for Social Security to be part of your retirement had better readjust your plans.

A hunting buddy of mine proposes the following plan to ultimately eliminate the Social Security congressional slush fund:

Anyone over the age of 45 will receive Social Security. Anyone under the age of 45 will not receive a Social Security check upon retirement. However, those younger than 45 will still be required to pay into Social Security to cover the benefits of those who are 45 or older. What they will get in return is that all of the money they accrue through investing in their 401(k), etc. programs will be tax-free when they retire.

Adopting this simple idea would slowly phase out the Social Security slush fund and incentivize younger Americans to save for their retirement. Do I smell a declaration of independence and personal accountability?

The problem, of course, with such a simple idea is that it will strip power (cash) away from Congress and put that power (cash) back in the hands of the people who earned it. Our elected officials won't go down without a fight for our money. Let's fight the thieves.

Ponzi schemes are operated by bandits like Bernie Madoff. Madoff was a rookie flimflam artist compared to the Washington bandits who are daily sending us further into a financial abyss. Let's stop this hell-bound financial train wreck and reverse course.

Rick Perry is right. Social Security is a Ponzi scheme. If we keep pumping cash into this scam, we are guaranteeing that our children and grandchildren will inherit a much weaker America. Ol' Ponzi would be pleased, but to do so would be un-American of us.

Ted Nugent is an American rock 'n' roll, sporting and political activist icon. He is the author of "Ted, White, and Blue: The Nugent Manifesto" and "God, Guns & Rock 'N' Roll" (Regnery Publishing).