As Barack Obama prepares to take office, a few crucial administration positions remain unfilled. Herewith a modest proposal for one still open position: Bernard Madoff for Social Security Commissioner.
True, there may be a minor problem since Madoff is under indictment for running a $50 billion “Ponzi scheme” on Wall Street, but think of the qualifications. Madoff is accused of running a scheme in which he took money from people with a promise to invest it. But instead of making investments, he kept the money for himself, and simply took more money from later investors and used it to pay earlier investors. Now compare that to a Social Security system that takes money from workers but does not save or invest it. Instead the government simply uses money from younger taxpayers to pay benefits to earlier retirees, while spending any “surplus” on other things. In the end, neither Madoff’s scheme nor Social Security are sustainable.
The big difference is that Madoff will likely go to jail; the politicians in Washington will likely get reelected.