So is Social Security in "crisis"? I guess that depends on how one defines crisis. If we, as a country, are going to continue to depend on Social Security to fund peoples retirement then its about as close to a crisis as one can get. If we're going to demand that people fund their own then there is no crisis. And I want my money back. With interest!
Many people want to disband the system. I'm not so sure. They wife and I were talking at dinner tonight about this subject as Lou Dobbs was on the tv in the resturant talking to various "experts" on the subject. I'm in favor of W's plan. It's opt-in and benefits aren't touched for older patients. The wife is worried about those who have spent 20+ years of their "working" life raising kids. They have no income at that time so they don't put any money into social security. Should they get any out? I'm not sure they should but the wife, in her usual intelligent way, made some strong arguments that they should.
How would I fix things? Well if Al was President (that'll make a good entry some day) I'd do the following:
- Tie the annual increase to the rate of inflation. I read somewhere that the current rate is 2 - 3 times inflation
- Allow all participants to put up to 10% of their "contribution" into one of 20(?) approved index funds
- Remove Congress from their savings plan and put them into Social Security like everyone else
- Allow anyone who wants out to opt out with the understanding they can not come back in at any time
- While not directly related to social security I'd bring back the IRA deduction for everyone - whether or not one is covered by a employee sponsored retirement program
Are these perfect? Will they fix everything? Nah. But these are five more ideas than I've heard from any Democrat.
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