The Hill News

The Republican chairman of the House Budget Committee on Tuesday drew fire from Democrats for backing Texas Gov. Rick Perry’s description of Social Security as a “Ponzi scheme.”

Social Security fits the technical definition of a Ponzi scheme, Rep. Paul Ryan (R-Wis.) told conservative Laura Ingraham on her radio show.

“It’s not a criminal enterprise, but it’s a pay-as-you-go system, where earlier investors â€" or say, taxpayers â€" get a positive rate of return, and the most recent investors â€" or taxpayers â€" get a negative rate of return,” he said. “That is how those schemes work.”

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