House witness defends calling Social Security a ‘Ponzi scheme’ after Dem attack

First on Fox: A witness to the home committee that was known as up throughout a listening to this week by Democratic Rep. Robert Garcia from California, pushes again after the congress member had yielded an earlier social media submit on social safety about social safety in an try and discredit his testimony.

Throughout a listening to of the home, the DOG Subcommissie on Wednesday, Garcia Grilled Energy The long run CEO Dan Turner, whereas held a postboard of a former tweet that calls social safety, a Ponzi scheme sponsored by the federal government. “

“Madoff went to jail for it. The congress runs on it,” stated the submit. “I ought to have the ability to maintain 100% of my cash and never see how the federal government wastes with a meager share of returns.”

Garcia then recommended that Submit was proof that Turner lacks credibility to testify concerning the billions of federal tax {dollars} centered on left -wing NGOs.

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Energy the longer term CEO Dan Turner and DEM. Rep. Robert Garcia stretched in a listening to on Thursday (Fox Information Digital)

“A Ponzi schedule and so I feel it’s after all attention-grabbing, as a result of certainly one of our Republican witnesses calls social safety a Ponzi schedule, and that’s the particular person we must always observe right here at the moment, “stated Garcia.

“With out Social Safety, 22 Million Individuals can be pushed Into Poverty. That features over 16 Million Seniors and almost 1 Million Youngsters. And in Truth, Elon Musk Has additionally Stated and Agreed With You, Sir, That This Is A Ponzi Scheme A Ponzi Scheme A Ponzi Scheme A Pon Speaking about effectivity whenever you wish to assault the only greatest program that now we have to help folks not simply out of poverty, however throughout this nation to uplift them, to make sure can afford a good life. “

FOX Information Digital spoke with Turner, who was in his place and outlined his conviction, mirrored by many, that social safety was by definition structured if a Ponzi schedule is structured.

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Former senior adviser Elon Musk from the White Home walks to the White Home after the touchdown in Marine One on the South Garden. (Samuel Corum/Getty photographs)

“Rep Garcia doesn’t know the definition of Ponzi schedule,” stated Turner. “Social safety is the final word Ponzi, who demand an increasing number of folks on the backside to finance the folks on the prime, expects our demography now to have reversed this. The system will fail. Nor I’ll by no means see a dime. That ought to fear greater than my social media feed.”

Turner informed Fox Information Digital that if Garcia’s workers would spend a lot time attempting to save lots of social safety as “combing by way of my social media”, then “maybe the Ponzi schedule can survive lengthy sufficient to get a small share of what the federal government took throughout my life.”

Turner defined that his father had acquired a “meager share” from what he paid in this system and the federal government “held the remainder” when his father died.

“That isn’t only a Ponzi schedule, it’s authorities greed and politicians who carry out a cash laundering operation to be re-elected. No one may be compelled to pay in a failed system, however in a reasonably America you do not have that alternative.”

Along with Turner and Elon Musk counsel that social safety has by definition been arrange as a Ponzi schedule, Fox Information Digital spoken To James Agresti, president of the non -profit analysis institute solely information that stated that the characterization has ‘validity’.

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“A Ponzi scheme works by taking cash from new traders to pay present traders,” stated Agresti. “That’s the definition of the SEC, and opposite to what’s typically thought, that’s precisely how social safety works.”

Agresti defined Fox Information Digital that Social Safety, a program that has been inspired for many years with concern about waste, fraud and incorrect funds, “doesn’t settle for our cash and retains it for us, as many individuals imagine, after which give us after we can imagine” as many Individuals can imagine.

“What it does is, it transfers cash after we are younger and work and pay on taxes on social safety,” stated Agresti. “That cash, the most important a part of it, instantly goes out to individuals who at present obtain advantages. Now there’s a belief fund, however in 90 years of operation that Trustfonds at present has sufficient cash to finance two years of program operations.”

The Trustfonds that may final solely two years will not be the results of the truth that the fund “looted”, Agresti defined, but it surely was beforehand launched to “put in cash” out of cash that collects social safety that doesn’t pay instantly and pays curiosity.

“The curiosity that has been paid is greater than the inflation share,” stated Agresti. “The issue will not be that the Trustfonds has been looted. The issue is that social safety works as a Ponzi schedule.”

Democrats have vocally pushed again in opposition to efforts of Republicans and Doge to reform social safety or make austerity what they are saying are examples of waste or incorrect expenditure of the division.

“There was loads of unsuitable details about that currently,” Agresti informed Fox Information Digital. “You realize, when Doge got here in and recommended that the Social Safety Administration was reduce, I feel it was round 10,000 workers, Democrats have damaged out that it will weaken social safety. However the truth is that the social safety pays for workers who for administrative overhead of the social safety belief, so that you pay the cash to them.”

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Rep. Robert Garcia, Democrat from California, speaks on the primary day of the Democratic Nationwide Conference (DNC). (AP)

Agresti informed Fox Information Digital that the present administrative overhead for social safety is $ 6.7 billion per 12 months, which is enough to pay greater than 300,000 pensioners the typical age.

“Each research exhibits that social safety will go fully bankrupt within the coming years. Garcia and different Democrats know that the iceberg is paramount, however as a substitute of turning the ship, they scream in opposition to the iceberg over the seniors on board,” Turner stated. “This Ponzi schedule collapses shortly and changing my tweets into posters is not going to cease.”