Home witness defends calling Social Safety a ‘Ponzi scheme’ after Dem assault

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FIRST ON FOX: A Home committee witness that was known as out by Democratic Rep. Robert Garcia of California throughout a listening to this week is pushing again after the congressman unearthed a previous social media publish on Social Security in an try to discredit his testimony.

Throughout a Home oversight DOGE subcommittee listening to on Wednesday, Garcia grilled Energy the Future CEO Dan Turner whereas holding up a posterboard of a previous tweet calling Social Safety a "government-sponsored Ponzi scheme."

"Madoff went to jail for it. Congress runs on it," the publish stated. "I ought to be capable to maintain 100% of my cash and never watch authorities waste it with a paltry proportion return."

Garcia then prompt that publish was proof that Turner lacks the credibility to be testifying concerning the billions of federal tax {dollars} directed to left-wing NGOs.

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Energy the Future CEO Dan Turner and Dem. Rep. Robert Garcia sparred in a Thursday Home listening to (Fox Information Digital)

" A Ponzi scheme and so I believe it is fascinating, after all, as one in every of our Republican witnesses is asking Social Safety a Ponzi scheme, and that is the individual that we ought to be taking recommendation from right here right now," Garcia stated.

"With out Social Safety, 22 million individuals can be pushed into poverty. That features over 16 million seniors and practically 1 million kids. And actually, Elon Musk has additionally stated and agreed with you, sir, that it is a Ponzi scheme. I believe it is ironic that you're one in every of our witnesses speaking about effectivity if you need to assault the one finest program that we've got to assist individuals not simply out of poverty, however throughout this nation to uplift them, to make sure they will afford a good life."

Fox Information Digital spoke to Turner, who stood by his publish and outlined his perception, echoed by many, that Social Safety is structured like a Ponzi scheme by definition.

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Former White Home Senior Advisor Elon Musk walks to the White Home after touchdown in Marine One on the South Garden (Samuel Corum/Getty Photographs)

"Rep Garcia doesn't know the definition of Ponzi scheme," Turner stated. "Social Safety is the last word Ponzi, demanding increasingly more individuals on the backside pay in to fund the individuals on the prime, count on our demographics have this now reversed. The system will default. Mr. Garcia nor I'll doubtless by no means see a dime. That ought to fear him greater than my social media feed."

Turner instructed Fox Information Digital that if Garcia’s workers spent as a lot time attempting to avoid wasting Social Safety because it did "combing by my social media" then "maybe the Ponzi scheme can survive lengthy sufficient for me to get a small proportion of what the federal government confiscated throughout my lifetime."

Turner defined that his father acquired a "paltry proportion" of what he paid into this system and the the federal government "saved the remaining" when his father died.

"That’s not only a Ponzi scheme, it’s authorities greed and politicians working a money-laundering operation to get reelected. Nobody ought to be compelled to pay right into a failed system, but in a free America, you don’t have that selection."

Along with Turner and Elon Musk suggesting that Social Safety is by definition arrange like a Ponzi scheme, Fox Information Digital previously spoke to James Agresti, president of the nonprofit analysis institute Simply Info, who stated the characterization has "validity."

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"A Ponzi scheme operates by taking cash from new buyers to pay present buyers," Agresti stated. "That is the definition given by the SEC, and opposite to fashionable perception, that is precisely how Social Safety operates."

Agresti defined to Fox Information Digital that Social Safety, a program mired for many years with considerations about waste, fraud, and improper funds, "would not take our cash and put it aside for us, as many individuals consider, after which give it to us once we're older" like many People may consider.

"What it does is, it transfers cash once we are younger and dealing and paying into Social Safety taxes," Agresti stated. "That cash, the huge bulk of it, goes instantly out the door to people who find themselves presently receiving advantages. Now there's a belief fund, however in 90 years of operation, that belief fund presently has sufficient cash to fund two years of program operations."

The belief fund solely having the ability to final for 2 years shouldn't be a results of the fund being "looted," Agresti defined, however fairly it was put in place to "put surpluses in it" from cash that Social Safety collects in taxes that it would not pay out instantly and pays curiosity on.

"The curiosity that is been paid on that has been greater than the speed of inflation," Agresti stated. "So, the issue is not that the belief fund has been looted. The issue is that Social Safety operates like a Ponzi scheme."

Democrats have vocally pushed again in opposition to efforts by Republicans and DOGE to reform Social Safety or make cuts to what they are saying are examples of wasteful or improper spending from the division.

"There's been lots of misinformation about that as of late," Agresti instructed Fox Information Digital. "You recognize, when DOGE got here in and prompt that the Social Safety Administration lower, I believe it was about 10,000 employees, Democrats erupted that that is going to weaken Social Safety. However the reality of the matter is that Social Safety pays these employees who're for administrative overhead from the Social Safety belief fund. So, by slicing out the cash that they are paying them, you really strengthen this system financially."

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

Agresti instructed Fox Information Digital that the present administrative overhead for Social Safety is $6.7 billion per 12 months, which is sufficient to pay greater than 300,000 retirees the common outdated age profit.

"Each single research reveals social safety going fully bankrupt within the subsequent few years. Garcia and different democrats know the iceberg is forward however fairly than flip the ship, they're yelling on the iceberg concerning the senior residents onboard," Turner stated. "This Ponzi scheme is collapsing quick, and turning my tweets into posters shouldn't be going to cease it."