In a recent article (No One Asked Me But…: Progress, October 5, 2011), Dr. Larry Moses argues against Social Security being a Ponzi scheme.

A Ponzi scheme may be defined as a fraudulent investment operation that pays returns to its investors from their own money or money paid by subsequent investors, rather than from any actual returns earned.

The Ponzi scheme usually entices new investors by offering higher returns than other investments. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

In 1935, then President Roosevelt passed a law that later became known as Social Security. At the time there were approximately 175 workers for every 1 recipient. In the latest poll it has been found there are three workers for every one recipient.

The biggest problem with Social Security is that it is a slush fund and a political device for unscrupulous politicians. By the above definition and a loose interpretation, Social Security is a Ponzi scheme but not in the way politicians want you to think.

We the people of the United States are being forced to “invest” in this scheme. In doing so, we are giving the politicians additional fodder for their pet projects.

I was also wondering about the comment (No One Asked Me But…: Progress, October 12, 2011) about laws that are “passed” with unintended consequences in many parts of this country. First let’s be clear, most of these laws are only enforcing Federal laws that are already on the books but that the Federal government refuses to enforce. To say that Americans will not do these jobs and that enforcing these laws is financially and economically unsound is wrong.

Both sets of people are breaking the law. Both sets are costing every single American thousands of dollars in both jobs and taxes. Many of these illegal aliens, using our loose control of federal welfare systems (including the Social Security program), are making our economy worse.

My generation may or may not ever see this money we are putting in. But it is a fact that many after us will not see this money at all.

If you look at how much current recipients receive (as little as it is after taxes), and how many are receiving money that have never invested a dime, it is a no wonder it is going broke.

This Social Security Ponzi scheme is paying more out than it is receiving and it is paying non-investors as well.

Scott King