Kind of late to this game, and haven't really read through it all, but I have some thoughts:
Social security was meant to be a short term solution as a greater part of the New Deal. It has transformed itself into a long term crutch for which we have no plan looking into the future. The Boomers number around 80 million people (about 26% of the population) – that number will vary depending on where you look, but 80m is a good average. These people are now nearing the age of retirement – my father, who was born in 46, the year that the boom started, will be up for SS and all that next year. Sustaining 80 million people for 30-40 years will be a strain on our economy and our government that we will be lucky to live through.
Social security is not a fund. I seem to recall that for a while, all SS taxes were cordoned off (one way or another) and kept separate from government revenue and expenditures. That didn't last long though, and it was absorbed into the government budget. Short term thinking for a long term solution.
Where's this leave us? Well, economically, I'd say we're screwed. Our current projected future obligations (of which SS is a part of) are around $53 TRILLION. (For some brief perspective – 1 million seconds = 11.6 days ;; 1 billion seconds = 31.7 years ;; 1 trillion seconds = 31,709.8 years...the number is huge.) David Walker, the current Comptroller of the US has said that our current fiscal path is unsustainable and that we face tough choices if we wish to MAINTAIN in the future. Not even to be prosperous, but to merely maintain our current situation. A bleak outlook for SS and other socialized programs. Like it or not, they may end up getting the axe if we can't get things under control quickly.
But as for Ron Paul: he has unorthodox, crazy ideas – yes. He seems like a cold hearted bastard for not accepting Medicare or Medicaid – yes. But is he really an asshole, or is he simply being realistic? I'd say he's thinking realistically. He realizes that our social well being and the state of our economy are inextricably linked. Greenspan, upon exiting as chairman of the Fed, said that the greatest thing that this country would face in the coming years would be the mounting credit debt, and, by extension, the mounting national debt. This is tied directly with these social programs – if we as a country aren't prosperous, everybody, Social Security or not, is screwed. But I suppose it's a chicken and the egg problem – did the fiscal problems come first, or do the social programs cause the fiscal problems? I'll admit, it's a multi-faceted problem that has and will continue to perplex economists and social analysts for some time.
Short answer? Cut the fat and start over. Admit that the system is ungainly and cannot stand the weight of its own commitments. Can it be considered a cold-hearted view of things? Definitely. But is it also a realistic outlook on a bleak situation? Definitely. Cutting unneeded programs out all at once will cause an uproar and downturn in the sort run, but in the long run will it help? No one can say for sure, but I think in the long term, we'll be OK.
I think we're at a point in time where we need to question the role of government and what kinds of decisions it can make on our behalf. That goes for everything. The founders wanted a country were the people were the deciders and where free markets reigned with as little intervention from the government as possible. Many of the people here are saying that the termination of Social Security would spell doom for all senior citizens, that old people would be walking the streets, panic would ensue, armageddon would rain down on us. But realistically, would this be the case? Maybe in some extreme cases, people would be worse off, but 99% of those would not be receiving their promised benefits would probably be able to find alternatives that are just as good. And what's to say that new types of aid wouldn't pop up? The market would react accordingly were it to see an imbalance, that's the beauty of our system. Is it perfect? Not at all, and people will be left out. Hell, I might be one of them. But has it allowed this country to prosper for the past 200+ years? Yes. It made this country the greatest in the world economically (from which we will probably be falling in the coming years, but I'm sure it won't be horrible).
"As a very important source of strength and security, cherish public credit. One method of preserving it is, to use it as sparingly as possible; avoiding occasions of expense by cultivating peace, but remembering also that timely disbursements to prepare for danger frequently prevent much greater disbursements to repel it; avoiding likewise the accumulation of debt, not only by shunning occasions of expense, but by vigorous exertions in time of peace to discharge the debts, which unavoidable wars may have occasioned, not ungenerously throwing upon posterity the burthen, which we ourselves ought to bear." –Washington
(sorry this turned out so long, i ended up just speaking my mind. thanks to anyone who made it to the end!)
Bookmarks