As I See It: Contraception: Speaker Pelosi's economic stimulus proposal - Social Security-Perhaps Huge Ponzi Scheme

As I See It: Contraception: Speaker Pelosi's economic stimulus proposal

By John Stoeffler
Saturday, January 31, 2009 3:14 AM CST

Recently, U.S. House Speaker Nancy Pelosi, D-Calif., proposed spending hundreds of millions of dollars to expand family planning services as a way to stimulate the economy. Her plan includes $200 million alone for condoms.

Prior to her proposal being rejected by her Democrat colleagues in the House, the speaker appeared on ABC's "This Week" with George Stephanopoulos. In response to a question posed to her as to how her proposal would act as an economic stimulus, Pelosi offered that "family planning services reduce cost.

"The states" she went on to say, "are in terrible fiscal budget crises. (O)ne of the initiatives ... contraception, will reduce costs to the states and to the federal government."

One is tempted to ask, "Does Madam Speaker mean babies are a burden on state and federal treasuries?"

Like those who are early investors in a Ponzi scheme, those who would buy into Pelosi's theory that reducing births will reap financial rewards are being conned. Yes, there may be short-term benefits to reducing births through contraception, but in the final analysis her proposal's benefits would be offset by higher costs and another fiscal crisis. How? An example of this would come about can be seen in this country's only legalized Ponzi scheme, Social Security.

With Social Security, the first ones in get the benefits from "contributions," compliments of those who follow. And like any pyramid scam, this can only work as long as there are more workers (at the pyramid bottom) participating to pay benefits to those who retire (the top of the pyramid). Without enough new blood to pay for those ahead of them the pyramid will become inverted and ultimately collapse of its own weight.

With a lower U.S. birth rate, thanks in large part to more than 48 million abortions performed since 1973, there are fewer and fewer workers today to pay into Social Security. Thus with every passing year, the pyramid base gets smaller and the top larger.

Speaker Pelosi's assertion that more children will strain the coffers of the federal and state treasuries is outlandish. In point of fact, more future workers are needed to support the increasing numbers of those who retire. Her fuzzy-headed proposal is based on a misguided belief that children are a burden on society.

Because there are currently tens of millions of fewer workers contributing to Social Security, it is retirees - I am one of them - who are drawing down on the monies from the so-called Social Security Trust Fund, which, in spite of assurances from numerous members of Congress, cannot maintain its solvency forever.

In fact, there have been numerous studies that conclude that by 2018 Social Security will be paying out more than it is taking in. Some of these studies report that given the current rate of contributions in and payments out, the Social Security pyramid will collapse around 2040. And for this we will have those to thank like Ponzi Pelosi, NARAL and Planned Parenthood.

Of course, there is a way to postpone, not end, this legalized scam which the federal government has perpetuated for years - raise Social Security taxes. The other option, cut benefits, is, in political reality, not an option.

Bernard Madoff is rightly being vilified for ripping off thousands of investors to the tune of $50 billion. But compared to the Social Security Ponzi scheme being orchestrated by the federal government, this will be looked back upon as chump change.

John R. Stoeffler, a Ballwin resident, is the president and co-founder of the Madison Forum, a constitutional think tank, dedicated to upholding the principles of the Declaration of Independence and the U.S. Constitution.