AEI: Opinion: Andrew G. Biggs: A New Vision For Social Security: The Purpose of Social Security & How to Improve it

Retirement Insurance

Retirement Insurance

A new vision for Social Security – Economics – AEI.

Andrew Biggs correctly points out that when talking about Social Security and reforming it. We need to first know what we are talking about what is the purpose of the program and what it. Is which is something that economic-Libertarians who want to privatize the program all together on the Right. So it becomes another pension program or todays so-called Progressives, Social-Democrats really on the left. Who want to make Social Security the sole provider of retirement income managed by the Federal Government. The fact is Social Security is not a retirement program at all or at least wasn’t designed as one. Even though it in effect serves as the sole income for a lot of retirees who weren’t able or didn’t save enough for their own. Retirements but the fact is Social Security is a retirement insurance program primarily there for people who weren’t able to save enough for their retirements. So all workers can retire or not have to work fulltime their entire lives. As well as a disability insurance program for people who aren’t physically or mentally able to work enough to support themselves.

So what I want to do is to keep the base of the Social Security intact and improve its financing. While at the same time improving retirement security in America and empowering workers to build their own retirements. And set up their own personal retirement accounts that would be matched by their employers. And for low-income workers it would be matched by their employers and the Federal Government. But my program would be an option and not a single-payer retirement program making Social Security the sole retirement program in America. But an option that workers could choose to build their own retirement accounts and managed them. Themselves so what I would do is leave the base payroll tax in place. But allow for workers to increase their own payroll tax that would be matched by their employers. And for low-income workers matched by their employers and the Federal Government. And this money would go into each individuals who are in Social Security Plus personal retirement account. For them to managed themselves.

Social Security and broader pension reform should be about individual freedom and responsibility. Leaving the base of the safety-net in place by empowering workers to build their own nest-eggs with the freedom to do it. And with the responsibility of what comes with that freedom. Rather then essentially eliminating the core-purpose of Social Security or having a government takeover or nationalization of our retirement system.

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About Rik Schneider

Blogger/writer on a lot of different subjects.
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