The New York Times‘ Paul Krugman finally took to his blog yesterday to respond to conservatives who have been using this 1996 quote to discredit Krugman on his criticism of Texas Gov. Rick Perry:
Krugman says it is unfair to use this “Ponzi” quote against him because “Paul Samuelson had done the same; he was basically just being cute, and I was emulating him — which now turns out to be a mistake.”
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Whether you want to be “cute” and call it a Ponzi scheme or not, the reality is that, according to The Social Security Board of Trustees 2011 Annual Report, Social Security added paid out $49 billion more than it took in last year, and will pay out another another $46 billion more than it takes in next year. If the payroll tax cut is extended, Social Security will add to our deficit every year from here to eternity.
When FDR first proposed the program, he promised that since taxpayers outnumbered beneficiaries, Social Security would always pay for itself. Whether or not you want to call this broken promise a fraud is up to you.
