Rectifying Public Policy: Social Security

We have all seen the place on our check stubs where the Social Security taxes are taken out but, how much consideration have you given as to whether or not it will be around to assist you in YOUR golden years? This is a topic of great concern to those who are supporting the Baby Boomers in a time of economic crisis (less people paying into the trust). We have found our selves in a place where Social Security is in dyer need of an overhaul, and our political leaders stick their heads in the sand, at the risk of losing face with elderly interest groups.

Consider that when Social Security was first devieloped by F. D. R., the average life expectancy in 1935 was 64. That was also the age people were able to begin receiving their SSI benefits. Now, compare that to the 14 year gap between the 1935 average life expectancy, and todays average life expectancy of 78, and the wheels start turning as to why we are running out of SSI funds quicker than the experts expected. Mr. Aaron of The Heritage Fund and Mr. John from The Brooking's Institution were quickly disproved of their claim that we were not to scrape the bottom of the trust fund within the next several in an article by R. Wolf. The article stated that the government predicted that the Social Security trust would be bled dry by 2024 (five years earlier than predicted in 2011).

What this should mean to every American is that there is far more uncertainty, regarding Social Security than anyone truly realizes (or at least cares to publish). If one year can make that much difference, how certain are we that they can predict that 2024 is the date the trust will be tapped out? 2024 is only twelve years out. Will we learn in the beginning of 2013 that we are an additional five years closer to the demise of the program (2019)? That's a scary thought, now isn't it?

The encrypted solutions mentioned in the above video are provided under the premise that there is no need for such implementation; however considering their error in mathematics, I believe these implementations should be evaluated and implemented as soon as possible. The first of these solutions would be to increase the benefit eligibility age requirement. When F. D. R. created the Social Security program, it was meant to support people just prior to death, when there was no possible way for them to earn the income necessary to support ones self. We should revert back to that method of thinking, and offer benefit eligibility at 74 (not 78). Those who find themselves not being able to work due to physical impairment due to aging would be eligible for disability, as Mr. Aaron suggests in the PBS New Hour interview. When the individual reaches the retirement age, their disability payments will roll over into their retirement, and the disability payments wouldbe discontinued.

The second solution (and my personal favorite) discussed is to create an income model, which would designate people into categories based on pension plans, royalty income and monetary assets, and determine their SSI based on their financial need. I know this sounds like class warfare, but this comes from a true-blooded Republican (seeking a solution). There are those who need SSI, and others who planely do not. If I had a couple hundred thousand dollars in the bank, and received more than adequate pension checks, would it be fair to accept full SSI benefits, when my neigbor is barely making it on a depleted SSI income? My answer would be no, distribute my portion across several, and give them a slightly more comfortable retirement, too. The 3.6 percent cost of living SSI increase was absolutely pathetic for 2011. Fixing SSI will cope with this issue.

Think of it like this: we pay various withholding aside of SSI, our anual taxes and some of us give to charities...all with little or no expectation of receiving anything back. I believe we should start looking at SSI the same way. If we need it, it's there however, if we don't...we shouldn't be greedy and take it just because we feel entitled. We may need it later on, and have no funds for use.

In the meantime, if we can implement such amendments as these, we could save SSI for future recipients, and ensure that everyone has the resources to be taken care of properly in their last years. Sky rocketing medical costs, the threat of hyper inflation, an impending WWIII with Iran, Russia and China...we are living in uncertain financial times; and to think that many will have their very life line stripped from them in upcomming years when SSI hits bottom ...that's a very alarming prospect.

We must take a more critical look at SSI, and turn a blind eye to the "Me, Me, Me" that crops up everytime the issue is visited by a prospective candidate, or the incumbent. People who are currently recipients should, and I imagine would, be grand-fathered into the program (maintaining their SSI payments). However, upcomming payees would have to adjust their retirement plans, and re-evaluate their ability to work, versus their desire to work. If they cannot work, apply for disability, and if you have money socked away in a pension plan, all the better, but time and money is running out for future generations, as well as the Baby Boomers. If we desire to provide for those in need of retirement assistance down the road (again, as early as 2024...if not sooner), Social Security must suffer the pangs of policy revision and implementation.

I know that no one likes to think about a future of uncertainty, but without revisiting this topic soon, that is exactly what the mass majority of retirees will be facing. It is better to do it now, while the program is still salvagable, rather than to try and resuscitate it once dead in the water.