Rick Perry: Telling it Like It Like It Is?

Another interesting and insightful column by Stanley Kurtz of the Ethics and Public Policy Center.

He starts out by suggesting that GOP-presidential candidate Rick Perry's insistence that Social Security is a "Ponzi-scheme" is in no way original to him, nor is it original to conservatives. Kurtz then cites a number of liberals who over the years have called SS a Ponzi-scheme, including liberal economist and Nobel laureate Paul Samuelson; Stanford economists Victor Fuchs and John Shoven; Ben Wattenberg, author of The Birth Dearth; Robert Shapiro, co-founder of the Progressive Policy Institute; Pulitzer Prize winning-columnist William Raspberry; liberal columnist Jonathan Atler; Matthew Miller of The New Republic; journalist and commentator Michael Kinsley of Slate; and Max Frankel, formerly of the New York Times.

Kurtz raises the point that Perry's refusal to back down or tone down his rhetoric on this issue is a reflection of his political courage. His concluding comments:

Remarkably, [Max] Frankel ends by chastising the media — including his own paper — for failing to challenge false claims by politicians for the system’s soundness. Frankel seems to crave nothing so much as a politician or reporter courageous enough to boldly make the Ponzi-scheme point.

 Our historical tour of the claim that Social Security is a Ponzi scheme confirms what we already knew: Rick Perry’s remarks are uncharacteristically bold for a politician, most especially a candidate in the midst of a presidential race. Yet Perry’s Ponzi-scheme claim is in no way unprecedented. On the contrary, the Ponzi comparison has been a staple of conservative warnings about Social Security’s financial soundness for decades. More intriguing, the Ponzi scheme analogy was popularized by a liberal Nobel Laureate economist, who initially offered it as a defense of the system, acknowledging only later that his defense was at least partially flawed. In the decades that followed, many honest liberals have made the Ponzi scheme comparison in the course of calling for systemic reform. Those liberals have bemoaned bipartisan deception and timidity on the Social Security issue, and praised those rare and courageous political souls, such as Alan Simpson, who were willing and able to call a Ponzi scheme by its real name.

So the question today is not simply whether Rick Perry will be punished or rewarded for showing the honesty even many liberal commentators once pined for. The more interesting issue raised by this historical investigation may be the fate of the Democratic party and the media. Where today are the liberal and centrist Democrats who only yesterday called Social Security a Ponzi scheme and supported bold reforms? Where now are the columnists and editors at Newsweek and the New York Times willing to reward truth-tellers and to criticize reporters who cover for cowardly politicians? The fate of Rick Perry’s blunt talk may tell us more than we want to know, not only about Social Security, but also about who we are and what we have become.

Here's the link to Kurtz's article, "Perry and the Ponzis" (NRO, September 12, 2011)