Bernie Madoff’s Ponzi Scheme Pails In Comparison To Social Security, Medicare
John Stossel points out that the self-righteous indignation displayed by our political leaders at the news of Bernie Madoff’s schemes and scams are a little hypocritical given what they do with our tax dollars:
Bernard Madoff, who stands accused of bilking sophisticated investors out of $50 billion, is reported to have told two of his executives that his business was “a giant Ponzi scheme.”
Perpetrators of Ponzi schemes lead clients to believe their money is invested and that their profits are the fruits of the money manager’s savvy. But in fact, the “profits” are merely revenue provided by the next group of dupes. Eventually, when no more new dupes can be found, the scheme crashes.
Political leaders say Madoff’s alleged crimes show what’s wrong with the country. President-elect Obama said the “massive fraud that was made possible in part because the regulators who were assigned to oversee Wall Street dropped the ball.” Senator Majority Leader Harry Reid added, “[R]egulators have been asleep at the wheel.”
Politicians go on and on about Wall Street “greed” and “irresponsibility.”
But Madoff’s scam was small compared to Ponzi schemes the government itself runs: Social Security and Medicare.
Good point.
At some point, we’re going to have to admit that Social Security and Medicare are unsustainable as spending programs and do something different. But admitting as much would require honesty, and there seems to be little of that in Washington DC these days.
