Don't confuse Social Security with Ponzi scheme

BY COMPARING Social Security to a Ponzi scheme, Ann Wollrath shows that she does not understand Social Security, or Ponzi schemes, or both (Letters, Dec. 26).

We know how much money goes into Social Security every year. We know exactly where the money is invested. We have good projections of the annual payout. We know that the current annual surplus will turn into a deficit in a few years. We can project when, given lack of political will to implement an easy fix, the Social Security trust fund will run out.

None of the above is true for a Ponzi scheme.

Much of what we know would be cast in doubt if we allowed Social Security to be privatized. We know what can happen when a serious economic downturn occurs and we do not have a safety net in place. It was called the Great Depression.

John Edward
Chelmsford
The writer is an adjunct professor of economics at Bentley University.