Tonight, one of Perry's supporters clarified that while Social Security is a Ponzi scheme, his candidate is not advocating that it be changed for the current retired generation - only people still working.
So, the question is this. If Perry will pay current retirees while getting those currently working to start "investing" in something akin to 401(k) plans, how is he going to pay for this?
Social Security for current retirees depends on payments from current working folks. That's one "tax" for retirement on the working folks.
A plan that funds someone's retirement for their old age depends on investment from current working folks. That's another "tax" for retirement on working folks.
So, Perry's plan is to simultaneously fund the old plan and the new one by taxing working folks twice? I'm sure that will work.