The History and Future of Social Security

The system’s financial structure is fundamentally unsound. Legislation of 1977 and 1983 attempted to address this by raising taxes and cutting benefits; Social Security was to be on sound financial footing well in to the 21st century. And now, just a few years later, The 1994 Board of Trustees’ report suggests that the system will run out of money seven years earlier than it projected just one year ago. Legislative initiatives to reduce benefits further and raise taxes are again on the drawing board. This did not work in 1977 or 1983; it will not work now. Social Security’s financial integrity requires an entirely different approach. I offer this testimony in the spirit of the starting point for an alternative: a concept of privatization wherein Americans benefit from the engine of a free economy and free choice. With privatization properly structured, today’s elderly will be protected, the young will retire with higher incomes, and our political leaders will have offered, once and for all, a lasting solution for which all voters will be thankful.