Republican Nick Begich, a wealthy software entrepreneur, claimed, without evidence, that Social Security is a “Ponzi scheme,” because its trust funds are invested in Treasury bonds.
Nick Begich, the Alaska Republican challenging Rep. Mary Peltola (D) in a critical House race, compared Social Security to a “Ponzi scheme” in an appearance on a conservative talk radio show last year.
In a lengthy interview on “The Michael Dukes Show” in July 2023, Dukes, the host, prompted Begich to speak about what the candidate described as Peltola’s promise not to “touch” Social Security funding.
Begich ― the founder of a software company who lent his last campaign, in 2022, $650,000 — noted that the massive benefits program has a funding gap that will cause an automatic 20% benefit reduction in 2035, absent congressional action. Begich claimed Peltola’s supposed aversion to plugging that hole is “crazy.”
He then criticized the government for investing the trust fund it uses to pay out benefits in U.S. Treasury bonds, which provide a lower return on investment than other assets.