REP. FUDGE SPEAKS OUT: SOCIAL SECURITY IS NOT A PONZI SCHEME

WASHINGTON, DC-- Today, Congresswoman Marcia L. Fudge (OH-11) spokeon the House floor against unsupported accusations that Social Security is a Ponzi scheme:

"I spend a lot of time at home talking to my senior citizens. And on one of my visits home, they gave to me a package of 25,000 signatures asking if I would pledge to support Social Security. I want them to know I'm going to pledge to do that, but I also want to say to them, yes we need to make some changes, but it is not a Ponzi scheme. I want for them to understand those who get by, keep food and shelter because of Social Security. It is not a Ponzi scheme. Yes, we need to make some changes, but you know what Mr. Speaker, we just need to raise the cap. We don't need to say that it can't be fixed; that it's broken.

We need to raise the cap. And again, I am going to say it is not a Ponzi scheme. It is something that hard working Americans deserve when they have finally retired after working for 25 or 30 or 40 years. It is not a Ponzi scheme."

Here are the facts

• For 75 years, Social Security has been the most effective program to prevent elderly Americans from living in poverty that this nation has ever known.
• For more than half (55%) of elderly beneficiaries, Social Security provides the majority of their income. For one-quarter (26%), it provides nearly all (more than 90%) of their income. For 15% of elderly beneficiaries, Social Security is the sole source of retirement income.
• Without Social Security, nearly one out of every two seniors would be living in poverty.
• Social Security is fully solvent until 2037, and even after 2037, it could pay 75% of scheduled benefits out of its trust fund.
• Social Security lifts out of poverty 341,000 Ohio women aged 65 and older. Without Social Security, the poverty rate of elderly women would increase from about 1 out of 10 (10.1 percent) to more than half (51.5 percent).17

###