Wither The Safety Net?

The Owl and Every Fool has posted today on Social Security, so I suppose I should join in as well!

The Owl's Perch - You Bet Your Life

Privatization of the fund is a horrible idea. Hedwig is dead right - most will lose - the rich and powerful will get richer.

And the most important part: it disconnects the individual from our shared destiny. The entire idea of "it's my money" is flawed and a serious rearrangement of society. The entire purpose of Social Security is to provide a basic level of support for all. The entire notion of the safety net is this: we as a society won't let anyone live in poverty. OK, so it doesn't work as well as we intended, but that doesn't mean it's fundamentally broken. Private accounts will break it.

I'm in favor of the following reforms:

1. Pay back the fund. The government has balanced its books too long on the SS surplus. Time to pay EVERY PENNY BACK. Yes, that may require raising taxes, but it's a debt, so pay it back.

2. Lock box the fund - stop borrowing it. Period.

3. Limit who can receive benefits. This is a tough one, but again, key to the idea of the safety net: if you make over $100,000 per year, you get nothing. You don't need it. I've planned my retirement without Social Security. If my plans work out and I have a comfortable retirement income, I plan on donating the benefit I receive. Think of it more like insurance than a retirement fund. It's there if you need it, but if you don't need it, good for you.

4. Increase the base benefits. If you make less than $40,000 a year you'll receive benefits to take you to $40,000 - which is a livable income. Benefits will be tied to the rate of inflation and current wage numbers so the purchasing power remains the same.

Give me leaders that can make the case - we need to care for every American. Social Security is part of the way we do that. If I personally don't need it, great. It's not welfare, it's part of our commitment to our fellow Americans.