In regard to Social Security, our present system should be repealed. An ideal program of Social Security for the elderly would meet the following goals:
– It would provide Social Security for the chronically unemployed.
– It would provide working Americans with an excellent opportunity to save money for their old age.
Our present system of Social Security fails to meet either of these goals.
Our present system should be replaced by a system of Social Security for the elderly that:
– Provides welfare for elderly Americans who were chronically unemployed during their lifetimes. Welfare for the elderly poor can be provided from general revenues. This class of people is relatively small. The burden on the average taxpayer should be very light.
– Requires ordinary working Americans to invest a portion of their earnings in private investment accounts. Prudent limitations should be placed on possible private investment strategies. In this way ordinary Americans will be able to accumulate wealth. Since this wealth will be inheritable, over time it could become quite substantial.
Although many commentators claim that the cost of reforming our present system could be quite substantial, in my opinion the cost of reforming our present system is really quite small compared to the cost of continuing with our present very poor method of providing Social Security for the elderly.
