Social Security will go broke soon, that’s a fact. Anyone who disagrees is just plain bad at math.
President Bush has come up with a good plan to save the system. But as usual, he is facing stiff resistence from obstructionist senators and congressmen.
Those mostly Democratic members of Congress who oppose the president’s plan to allow younger workers to invest in private accounts fail to see why we need to give people the choice of investing their money in the market instead of keeping a system that will not be able to serve its purpose once our generation needs it. Sen. Harry Reid (D-Nev.) for example, is fighting the president’s proposal, although in a 1999 interview with Fox News Channel’s Brit Hume, the senator said he supported the idea of private accounts.
“Most of us have no problem with taking a small amount of the Social Security proceeds and putting it into the private sector,” the senator told Hume.
Sounds like a good ol’ Kerry-style flip-flop to me. The senator and his far-left allies need to wake up and support the much-needed reforms.
The Social Security program was a good idea when it was conceived by President Franklin D. Roosevelt after the devastating economic hardships people suffered during the Great Depression. It allowed the nation to provide a safety net for retirees using a pay-as-you-go system. Younger workers funded those who retired. Younger generation paid older ones, with the expectation that those that followed would, in turn take care of them. It worked.
But as baby boomers get ready to retire, the numbers are just not adding up.
The president made it clear in his 2005 State of the Union address.
“In those days,” the president said, referring to when Social Security was put in place, “people did not live as long, benefits were much lower than they are today, and a half century ago, about 16 workers paid into the system for each person drawing benefits.”
He noted that soon, the system will not be able to sustain itself because of these facts.
“So here is the result: Thirteen years from now, in 2018, Social Security will be paying out more than it takes in. And every year afterward will bring a new shortfall, bigger than the year before. For example, in the year 2027, the government will somehow have to come up with an extra $200 billion to keep the system afloat — and by 2033, the annual shortfall would be more than $300 billion. By the year 2042, the entire system would be exhausted and bankrupt,” he said
The president also said that he is open to anyone with a good idea, and that there are many such ideas on the table. But it’s clear that he supports private accounts – and he should.
Having the option of a private account would let us put aside payroll money and let it grow. Putting that money in the stock market would allow our funds to grow with the economy, and would be sure to give us far better returns than the current system.
Of course, putting money in the market would carry some risk. But over the long run, the market has performed better than just about anything the government has provided in the form of an entitlement, even with the ups and downs the market has experienced over the years.
In addition, any such program would be regulated by the government to make sure investments are not put in volatile sectors, but rather those that have the best chance to grow.
Member of Congress need to look at the numbers and do what’s right.
They need to put partisanship aside. Now is not the time for bitter disputes that are meant only to prove that Democrats still have some power after the outcome of the November election.The president has said on several occasions that he wants to work with members of the Democratic party to get things done. They should do the same.
Debate should be welcomed, and all ideas should be heard, but they should realize that the choices are few: we can leave the system as it is, we can raise taxes to compensate for the revenue gap, or we can allow younger workers to invest in private accounts.
The first is not an option – the system will go bankrupt.
The second option will not be received well by most Americans. Higher taxes will slow down the economy and take our hard-earned money away from us in order for the government to spend it however it wants.
The third, though it will carry some risks, is sound. It give us choice by allowing us to invest our money however we see fit and allows for growth of that investment.
Older folks should not worry. The president has made it clear that this process would be gradual, and that they will still get their benefits. We younger ones should worry, however. We should urge our elected officials to support private accounts so that when we retire we can enjoy what is rightfully ours.