Rick Perry has given the entire world a good reason to disregard him as a serious candidate for the President of the United States (not a single candidate helped themselves out last night either with respect to economics) when he falsely called Social Security a “Ponzi” scheme. Regardless of your political affiliation or how you feel about Social Security (whether it’s a success or failure) you must surrender to the facts and the facts are not on the side of Rick Perry.
Bernie Madoff ran a Ponzi scheme, the U.S. Government doesn’t and what follows is the difference:
Bernie Madoff couldn’t print dollars, the U.S. can. As long as Social Security payments are denominated in dollars – the US can meet its obligations without question. This is a statement of fact, not of opinion.
Perry and so far, every Presidential candidate has demonstrated a severe deficit when it comes to understanding or explaining our monetary system and because of this they make claims that make them look stupid.
Is it smart to elect a President who can’t even explain our own monetary system? Would you want someone running the country without at least a rudimentary understanding of economics? Perry has taken himself out of the running for anyone who wants the economy to get back on track, Paul did this a long time ago (his defense of a Gold standard will lead this country into a Great Depression). Who will be the next to demonstrate economic ignorance – the dominoes are falling quickly.
Scott Dauenhauer CFP, MSFP, AIF