Rick Perry on Social Security: “It is a Ponzi scheme for these young people"

Texas Gov. Rick Perry isn't backing down from his claim Social Security is a Ponzi scheme. He first made the claim in his book “Fed Up!”.

OTTUMWA, Iowa —... Asked by a woman in the crowd about Social Security being viewed as an entitlement program, Perry reiterated the suggestion in his anti-Washington book “Fed Up!” that the program amounts to a Ponzi scheme.

“It is a Ponzi scheme for these young people The idea that they’re working and paying into Social Security today (and) the current program is going to be there for them is a lie,” Perry said. “It is a monstrous lie on this generation, and we can’t do that to them.”

Later, in Des Moines, when a reporter asked about the suggestion his campaign was backing off some positions in the staunch states-rights book, Perry said, “I haven’t backed off anything in my book. So read the book again and get it right.”

Is Gov. perry correct? Here is the definition of a Ponzi scheme from the Securities and Exchange Commission. 

What is a Ponzi scheme?

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.