Social Security Is A Working Ponzi Scam, Why Change It Now?
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Many Americans believe and assert that Social Security is nothing more than a “Ponzi Scheme.” In this episode, Rusty tackles that assertion from someone who thinks the “Ponzi Scam” has worked well in the past, so why change it now?
Dear Rusty: Maybe everybody has the same reaction that I do to Social Security insolvency. I do not understand a system that has been basically run like a Ponzi Scam since its Inception; why have you decided (in 2026-2027) that now is the time to change a perfectly good Ponzi Scam. In all reality, this began with Babylon. I’m sure that if you searched the meaning of the words “Babylonian money magic,” you would understand what I’m talking about. If this is as good as the Earth has, why would you mess with a perfectly rotten thing. Why would you decide to change currencies to some sort of fragile digital currency? Signed: Skeptical Senior
Rusty’s answer in brief
Social Security is not a Ponzi scheme. It operates in the open, with its finances and long-term deficits reported to the President and Congress every year; it is overseen by congressional committees, the GAO and an inspector general; and it is funded by a permanent stream of payroll taxes. Retirees get their contributions back as benefits.
The program’s real problem is insolvency about six years away, caused by workforce demographics and decades of delay in Congress, not fraud. AMAC has offered its Social Security Guarantee as a plan to fix it.
This recording presents the viewpoints of the AMAC Foundation’s Social Security Advisory Staff, trained and accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). NSSA and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government. To request additional information, contact our Advisory Staff at 888-750-2622, or email us at SSAdvisor@AmacFoundation.org.