I certainly do not have any problem with Madoff getting a 150 year sentence for pleading guilty to 11 counts of fraud. He probably deserves a worse sentence for ruining many lives. However, I find it ironic that the Madoff investment Ponzi scheme was found to be illegal, however many corporations and our government also use Ponzi schemes. Amway Corporation is run like a Ponzi scheme. A Ponzi scheme is similar to a triangle business model where each person in the company is required to sign up so many people to cover their expenses. This is the basic philosophy behind the Madoff and our federal governments running of our retirement accounts. Our government runs social and retirement programs such as: entitlement, social security, and Medicare as a Ponzi scheme. I would like to see someone challenge the government and the way they handle these programs. Basically, the elder people collecting social security and Medicare benefits are being paid for by younger generations. Thus, by the time younger generations reach retirement, they too are collecting money from younger generations. In essence, the money I am paying into to social security and Medicare is already being spent to support current retirees. This to me makes absolutely no sense. The money I save for Medicare and social security should be used by me and only me when I retire. This is the only way to ensure the money is there when I retire. With the current recession the money for Medicare and social security will dry up in the next decade if nothing is done. The current recession is same reason as to why the money dried up in the Madoff Ponzi scheme and he was caught. The government will solve the problem simply by raising Medicare and social security taxes on individuals and corporations. This is a travesty and should be illegal. If the government only ran these programs properly from the onset, there would be no need to raise any taxes on individuals and corporations to support these programs. This is why our government cannot be trusted to run any corporations or programs. They are financially illiterate and have basically destroyed everything they have tried to run. They have not only destroyed the way our retirement accounts are being financed, they have destroyed businesses such as the Post Office, Fannie Mae, and Freddie Mac all of which are losing money at alarming rates. In essence, the government lacks strategic financial vision and finds solutions to problems that work today while neglecting future implications of their plan. If it is illegal for Madoff to run a financial Ponzi scheme, then logic would seem to dictate that it should be illegal for the federal government to run our retirement accounts in a Ponzi scheme. I think it is insane that the American taxpayers are continuously penalized because of our federal government’s continual colossal errors in basic financial judgment.
My Book: Is America Dying? (Amazon.com, Barnes and Noble)
My Blog: The Theory of Mediocrity (http://patrickbohan.blogtownhall.com/)