COMEDY GOLD: Clash of The Clueless: Friedman v. Santelli

[kpete]

TRANSCRIPT

FRIEDMAN: No, I don’t think it’s a Ponzi scheme.

SANTELLI: Earlier in the show you said that we’re putting a burden on our kids that’s unsustainable. What’s the definition of a Ponzi scheme?

FRIEDMAN: It’s a program that made promises that it cannot keep in full and it needs to be fixed and reformed.

SANTELLI: Isn’t that exactly what a Ponzi pyramid is?

FRIEDMAN: I don’t think it is a Ponzi scheme as a criminal endeavor.

SANTELLI: No, no — forget the criminal side. You need more people to perpetuate a myth because if the people stop the myth is known to all. That’s my definition of a Ponzi scheme. Let’s call at it chain letter, a pyramid scheme. Isn’t that by definition what Social Security is? Take the legalities and fraud out.

STEVE LIESMAN: Why is it a Ponzi scheme, Rick?

FRIEDMAN: It is pay as we go. Ronald Reagan fixed it. Why can’t we fix it?

SANTELLI: What does Ronald Reagan have to do with my question?

FRIEDMAN: What does your question have to do with reality?

MICHELLE CARUSO CABRERA: We brought it up.

SANTELLI: You can’t decide that more people is the only thing made Social Security work. We have a real issue because many people in government seem to like to read your work.

FRIEDMAN: What makes Social Security work is fixing Social Security in terms of the population demands.

SANTELLI: I didn’t ask if we should fix it or not. I asked if it’s a pyramid scheme.

FRIEDMAN: Your question is idiotic. That’s what you asked.

SANTELLI: You’re answer’s idiotic. I’m done. I feel good.

FRIEDMAN: So do I.

VIDEO OF CLUELESSNESS:
http://www.ritholtz.com/blog/2011/09/clash-of-the-clueless-friedman-v-santelli/

[Rex]

1. Fucking idiot. SSI is a system set in place so the govt can steal

money from the working poor and never pay it back.

[bemildred]

2. By that argument, all human societies are Ponzi schemes.

What a fool.

[Cali_Democrat]

3. Santelli is an asshole. n/t

[pkdu]

4. by Santellis own argument Capitalism is a Ponzi scheme n/t

[underpants]

5. The "Ponzi shceme" meme ignores the actual payout.

It depends on who you ask but SocSec is recouped within 5-18 years depending on several factors.

Let's say your average income is $30,000 (this is from the bagging groceries to you highest income) at 6.2% you would contribute $1,800 a year. This is a high estimate by the way.
$1,800 X 40 years contributing = $72,000 contributed.

A monthly SocSec income of $1,000 (which is low)= annual of $12,000

$12,000 X 6 years = $72,000. After that you are receiving a benefit that you didn't pay into. It is a good (maybe too good for those who don't need it) investment for the individual.