Why I'm Involved

[National Dialogue Moderator <moderator>]

First, let me say thank you to ADSS and Network Democracy for
hosting this forum.  I appreciate the opportunity to participate
and I look forward to addressing your questions and listening to
a broad spectrum of opinions about how to save Social Security.

Until recently, Social Security used to be called the Third Rail
of politics -- touch it and you're dead.  For many years, my
colleagues in the House of Representatives and members of the press
have asked, "Jim, why are you sticking your neck out on this issues?
You're crazy!"

I'm involved for many reasons.  I'm involved because Social Security
provides income support to over 44 million retirees, survivors,
dependents, and disabled workers.  I'm involved because Social
Security is the most successful government program in US history,
lifting millions of senior citizens out of poverty every year.
I'm involved because Social Security is the single largest government
program, consuming 23 percent of the entire federal budget, and
it's growth threatens the viability of other worthy federal programs
including Medicare, defense, clean water and clean air programs,
and higher education.  I'm involved because keeping Social Security
intact -- for those who depend on it today and those who will need
it in the future -- is a commitment neither Congress nor I will
ever ignore.

A brief overview of recent demographic changes illustrates vividly why
Social Security needs reform:

*	People are living longer and thus drawing benefits for many more
years than originally anticipated.  In 1935, the average life span was 61
years.  Today, it is 75 years and by 2025, people will live to an average
age of 78 years.

*	Families are smaller, consequently there are fewer workers to
support current retirees.  In 1950, there were 16 people working and paying
taxes to support a single retiree.  Today, there are only three workers per
retiree and by 2030 there will be only 2 workers supporting every retiree.

*	The Baby Boom generation is nearing retirement.  Between 2010 and
2030, 76 million Baby Boomers will retire and begin collecting Social
Security, and by 2030 there will be twice as many people over age 65 than
there are today.

*	People are retiring earlier and working less. In 1940, the average
age at retirement was 69 years.  Today, the average age at retirement is 62
years.

The concern that Social Security cannot meet its future obligations is why I
formed the Public Pension Reform Caucus (PPRC) with my colleague, Rep.
Charlie Stenholm (D-TX) in the House of Representatives in 1995.  The PPRC
is a bipartisan forum designed to discuss, research and examine the problems
facing Social Security.   In this Congress, the PPRC has over 75 members and
provides them the opportunity to learn more about the intricacies of the
Social Security system, the looming financial difficulties it faces, and the
options for reform.

Over the past year, several reform proposals have been introduced.  In the
next two weeks, this forum will explore several --  including the plan Rep.
Stenholm and I have introduced this Congress (HR 1793).  As our nation moves
forward in the Social Security debate, however, I encourage all Americans to
judge each proposal holistically -- to examine what each plan accomplishes
in its entirety, rather than focus on one or two provisions.  As Rep.
Stenholm and I discovered, any meaningful reform proposal must include some
unpopular provisions.  In our bill, we try to minimize the impact on
vulnerable populations and we provide meaningful incentives for all others
to accept the tough choices.   If everyone determines the acceptability or
unacceptability of various proposals based on a single element, though,
we'll never achieve the bipartisan consensus necessary to pass a bill and
save Social Security.

Jim Kolbe
Member of Congress