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During this election year, we are destined to hear many words that are toxic in the way they misrepresent reality and substitute fantasies that can win votes.

Are we entitled to Social Security payments?

Social Security was created back in the 1930s, during the administration of President Franklin D. Roosevelt, one of the shrewdest politicians who ever sat in the White House.

President Roosevelt understood that, if you could convince people that they were entitled to a pension under Social Security, it could become politically impossible to ever put an end to that system.

The pensions promised exceeded what could actually be paid from the money that was put in by the recipients. But the first generation to enter Social Security would have their pensions paid by money received from the second generation, as well as its own money. The second generation would be paid with money that included what was paid in by the third generation, and so on.

This is the principle behind a “pyramid” scheme, in which the first investors can get a big return on their money by simply paying them money received from subsequent investors. But it is only a matter of time before reality catches up with us, since the pyramid scheme is not actually investing any money or saving any money.

That is why a private insurance company that sold annuities based on a pyramid scheme would be prosecuted for fraud, and its officials put in prison. But you can’t put Congress in prison, even when that is what it deserves.

Source: Toxic Words | Human Events

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