Explaining Southern California's economy

Econ 474: Is Social Security a Ponzi scheme?

If you followed my live-econoblogging of last night's Republican debate at the Reagan Library, you know that Gov. Rick Perry of Texas refused to back down on his assertion that Social Security is a "Ponzi scheme." Bear in mind that Perry has been on the record with this position for a while, but most of the post-debate punditry focused on whether it was politically wise for him to so stridently restate the view. 

Perry was clearly playing to his base — and maybe even providing some cover for his lack of a comprehensive economic plan compared to Mitt Romney, who laid out his jobs plan in detail prior to the debate. Regardless, he's certainly not the first person to call Social Security a Ponzi scheme, but he's the latest and arguably most prominent figure to completely misrepresent how Social Security actually works.