Social Security not a Ponzi Scheme

Rush Limbaugh recently made the claim that Social Security is a Ponzi scheme, I don't take anything Rush says seriously - this recent ill advised claim is no exception.

The first thing that all Ponzi schemes have in common is the claim that investors will receive very high return on their investments. Social Security makes no such claim of market arbitrage.
The second thing that all Ponzi schemes have in common is that there is always the possibility that all investors in the scheme will demand their money at the same time as happened in the Bernard Madoff scheme. This cannot happen under the rules of Social Security.
The third thing that all Ponzi schemes have in common is that the major beneficiaries are concentrated to one, or a small group of people, at the top. This cannot happen under Social Security.
Calling Social Security a Ponzi scheme is a phony claim designed to drum up some phony outrage so that a few at the top can benefit from the privatization of the fund.
This type of fear mongering was used in the 2004 election season when President Bush was trying to scare people by making the false claim that John Kerry had a secret plan to privatize the fund.
The performance of the markets since the beginning of 2005 is the only proof we need that privatizing Social Security is a bad and reckless idea. Aren't we all glad that the Social Security fund was not used to trade toxic assets and stocks?
Those who claim that Americans will benefit from arbitrage opportunities by privatizing Social Security are the same people who will ask for a government bailout when their retirements are wiped out in the markets.
Social Security was set up during the Depression to prevent poverty in old age. Ponzi schemes depend upon the most gullible and less-informed to stay in operation.