Paul Hsieh describes the moral bankruptcy of the Social Security Ponzi scheme.
But more fundamentally, not only is Social Security economically bankrupt, it is also morally bankrupt. Contrary to popular belief, Social Security is not a savings plan where people deposit their money during their working years then withdraw it once they retire. Rather, as Robert Samuelson recently described, it is a “pay as you go” scheme. Current workers are taxed to pay current retirees. When these workers retire, they’ll then receive money taken forcibly from future workers. Hence, Social Security is no different than any other Ponzi scheme, except that Americans are compelled to join whether they wish to or not.
Individuals are legitimately entitled to retire with their own savings or from money contractually owed them via insurance, private pensions, or other voluntary retirement plans. Individuals have both the right — and the responsibility — to plan for their retirements according to their own best judgment. This includes saving money as well as purchasing insurance (or entering into voluntary mutual assistance agreements with others) to protect themselves against unforeseen adverse circumstances that might prevent them from saving for the future.
But they do not have the right to confiscate other workers’ earnings to fund their retirements. The fact that current workers have already been taxed to pay earlier retirees does not give them the right to confiscate future workers’ incomes, just as someone who had been physically abused by his parents does not somehow gain the “right” to abuse his children in turn.
Social Security should be eliminated as quickly as possible. Present generations should not be allowed to vote to themselves the wealth that will be created by their children and grandchildren.