Social Security: Jonathan Hoenig on Cashin' In

by the Left Coast Rebel

This morning I caught Jonathan Hoenig (left) on Fox News' Cashin' In. I transcribed while enjoying a cup of Saturday morning java:

"Social Security by definition is a Ponzi scheme. It is Bernie Madoff on the largest scale, they lock you up for things like this. There is no savings, there is no investment, there's no ownership, no account with your name on it - there's just looting you today with the promise that they will loot future generations on your behalf."

Jonathan is just my kind of guy. Liberal talk show host Mark Liven (spelling?) followed Hoenig's statement by saying,

"Don't worry, the law says that you are required to get Social Security, the only way that you won't get Social Security is if Republicans are elected and they do what Jonathan wants."

I wish that were true. Any student of history will note that Republicans have done quite the opposite. Liberal Mark is also woefully ignorant of history. Cato's Michael Tanner explains:

Many people believe that Social Security is an "earned right." That is, they think that because they have paid Social Security taxes, they are entitled to receive Social Security benefits. The government encourages that belief by referring to Social Security taxes as "contributions," as in the Federal Insurance Contribution Act. However, in the 1960 case of Fleming v. Nestor, the U.S. Supreme Court ruled that workers have no legally binding contractual rights to their Social Security benefits, and that those benefits can be cut or even eliminated at any time.
Time to privatize!


  1. Wasn't SS a Democrat scheme? From the Socialist FDR I believe...
    I have thought this too that SS is just a big pyramid scheme. And when I saw the news about B. Madoff, I though" why is it a crime for him and not our Govt?"... Also, it seems another case where we are forced to "contribute" to something whether we want to or not. Confiscation!

  2. John - It is confiscation, plain and simple. Sadly it is the biggest entitlement program in the world too - you and I should have the freedom to choose and control our retirement income allocation. If Americans believed as they did throughout our history such a notion would be hardly 'radical.'

  3. Interesting. But I must say that the way the scheme was sold by FDR, IE: as a trust fund, it technically would be an earned benefit upon retirement.

    However FDR lied to the American people. The concept initially was social security taxes were to be used solely for social security recipients benefits.

    But even as social security was being started the administration had it's attorney's arguing the governments right to use social security taxes however it chose. Of course the liberal court upheld their arguments and hence SS became a huge Ponzi Scheme.

    I agree with you Tim. People should be able to earn and invest the amount of social security taxes they pay as they see fit. The nation would be a damn sight better off for it.

    The problem is how to effectively transition to a privatized system that all would by into.


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