Social Security--a Ponzi Scheme?

Hiipakka’s characterization of Social Security as a Ponzi scheme is troublesome especially with the implication that our senior citizens are the villains. Perhaps a more accurate thought would be that presently we are all victims of taxation. It is difficult to develop total equity in any system or program.

The move to an Individual Retirement Account for future retirement planning is a sound plan and does defer current taxes. However, the taxes deferred directly contribute to the budget deficits. Future taxes, including those that will be paid out of the IRA disbursements, will have a significant impact on spendable income. Will Hiipakka call IRA a Ponzi scheme then?

Sowing seeds of discontent between the generations adds to the stress and confusion of improving the quality of life. We should join together and develop economic improvements that benefit all segments of society.

As for discounts for seniors, that is a successful marketing device promoting commerce just like special sales, discount stores, etc. These discounts are not part of any entitlement program but are up-front promotional gimmicks. That’s the American way!

Perhaps Hiipakka should return to college and concentrate on perspective, history, humanity and economics. In more simplistic terms, when cheap gas and 5% mortgages were available, very few had the money to take advantage of those opportunities. As for nuclear war and toxic waste, we also faced those problems in the “good old days” but were not as well informed.

All generations face devastating problems and economic uncertainty. Instead of thinking that we pay Social Security to subsidize the elderly, we should consider it a personal investment for our own individual future. Then and only then will we be able to know that we can order a doughnut with our retirement coffee.

DON CHERRY

Downey