Trump In 2000: Social Security A Ponzi Scheme That Should Be Privatized
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Donald Trump now says he wants to save Social Security, but that wasn’t always the case.
“What I want to do is take money back from other countries that are killing us and I want to save social security,” The Donald said on 60 Minutes on Sunday. “And we’re going to save it without increases. We’re not going to raise the age and it will be just fine.”
“We will set it up by making our country rich again,” Trump said when asked how he would fix the program. “We are going to do great. As a country we are going to do great.”
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But when Trump first flirted with running for president in 2000, he wanted to privatize the program and raise the retirement age, and called the program a Ponzi scheme.
“Fast-forward to 1941,” writes Trump after a long explanation of the first Ponzi scheme to intro his chapter on “Making Social Security Secure Again.”
“This is the second year Social Security benefits have been paid,” he continues, “The first recipients of Social Security, even once inflation was factored in, got the equivalent of a 36.5 percent annual interest rate on their initial contributions into the Social Security Trust Fund. For those retiring in 1956, their inflation-adjusted rate of return was still a respectable 12 percent. Julie Kosterlitz, in the National Journal, compares that figure with this: For those who are working now and looking to retire after 2015, their returns will be below 2 percent. And that’s if they ever get paid at all. Does the name Ponzi all of a sudden come to mind?”
Trump proposed a number of solutions, first an age of seventy for the retirement age.
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