Much of the media has declared calling Social Security a “Ponzi scheme” taboo since Texas Gov. Rick Perry started mainstreaming the comparison. But Tuesday on the Fox Business Network, George Mason University economist Walter E. Williams didn’t scold the GOP presidential hopeful.
“There are three Nobel laureate economists who agree with them as well as many other people. You know, Paul Samuelson, Milton Friedman and even Paul Krugman said Social Security is a Ponzi scheme and it is a ripoff of young people to older people and represents a redistribution of income from young people to older people because young people will never see a dime of Social Security. Instead it will be bankrupt by the time they retire.”
He also explained how government efforts to engineer social justice are the root of problems all over the world.
“If you look at the huge fiscal problems around the world, at the root of these problems whether it is the United States, England, Portugal or Greece — at the root is government giving people money than they did not earn,” Williams said. “That is the cause of all the problems.”