Friday, February 18, 2005

...On Social Security

There’s been a lot of debate about President Bush’s plan to overhaul Social Security. While I’m still skeptical of his plan to “privatize” the massive retirement fund, I also have to give him kudos for at least trying to do something. From the time I got my first job as a child, I’ve paid into social security, and for my entire adult life I’ve been aware that the program couldn’t last indefinitely with the current structure. For as long as I can remember, politicians have made various proposals to change the current system. Invariably, senior citizens – arguably the most politically active demographic – become worried that changes to the status quo will disrupt their benefits, browbeat their representatives into submission, and the proposals die before they’re even thoroughly discussed. As a result, Social Security continues headlong toward catastrophe.

It is essentially undisputed that Social Security will become bankrupt if something doesn’t change. When the baby boomers start retiring, money will be taken out of the Social Security fund faster than it’s going in. Yet any time someone tries to actually do something about the upcoming problem, current recipients and those due to start drawing benefits in the near future cry foul. I hate to tell you folks, but you can’t have it both ways. I understand that many retired people rely on their Social Security income to make ends meet. I realize that the Government made you a promise that if you put money into the plan while you were working that you’d be taken care of after retirement. But when the plan was created in the 1930’s, life expectancy was far shorter than it is today. The baby boom hadn’t happened, and neither had the subsequent decline in birth rates. In short, the Government hadn’t planned on the shortfall of contributions that we’ve been experiencing for the last several decades. Everyone knows that you can’t always keep every promise you ever make. Circumstances sometimes change, unforeseen events arise, and sometimes these unexpected variations require a change in plans.

Many of us who are still decades away from retirement have come to realize that things can’t continue as they are today. In fact, many of us believe that social security will not even exist by the time we reach the age of retirement. Despite this uncertainty, we are still asked – and still do – contribute, in order to help the Government fulfill the promise made to our parents and grandparents. We do this knowing full well that Social Security may not exist by the time we retire. It definitely won’t be structured like it is now.

Almost without exception, current retirees collect far more in benefits than they paid into the fund while they were working. But the fact is, Washington considers Social Security a sacred cow, something that can’t be changed. Why? Because of the powerful lobbying on the part of seniors. While the public at large seems to detest special interest groups and powerful lobbyists, things are somehow different when it comes to their monthly stipend. Not only do seniors condone lobbying for Social Security, they actively support it.

The time has come for change. Currently, Social Security is the Titanic heading for that giant iceberg. The major difference between Social Security and the famous cruise liner is that most of us see the impending doom of Social Security insolvency and would like to do something about before it’s too late to change course. The problem is that most current recipients are unwilling to change course now in order to avoid a future catastrophe. They’d rather stick their heads in the sand and pretend that things are peachy. Well, they’re not!

My parents’ and grandparents’ generations have talked for years about the sacrifices they’ve made to make America a better place for future generations. I recognize, understand and applaud the sacrifices of those who have come before with the intention of making things better for me, and for and my children. What they’re failing to understand though, is that the sacrifice doesn’t magically end when you retire. As a parent, I realize that I’ve made a lifelong commitment to making things better for my children.

While I’m not convinced that President Bush’s current proposal is the magic elixir that will somehow fix Social Security, I wholeheartedly applaud his efforts, and support him in his quest to at least try something… anything. I don’t know if his proposal will work, but I do know that the status quo doesn’t work. And in the end, I think it’s this fear of the unknown that’s got seniors so paralyzed and opposed to any recommended change. But which is worse – a known catastrophe, or the unknown?

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