Social Security Works

[National Dialogue Moderator <moderator>]

			Social Security Works


It is clear that some members of this discussion believe that Social
Security does not work and it should be abandoned.  Several
questioners have expressed the desire to opt out of the Social
Security system entirely.

I feel it is appropriate to share a few critical facts to balance
this discussion.

More than 148 million workers are protected by Social Security,
and more than 44 million people receive retirement, survivors and
disability benefits from Social Security.

More than 9-in-10 older Americans get Social Security retirement
benefit payments each month. Without Social Security nearly half
of American senior citizens would live in poverty.  Social Security
relieves families of the financial burden of supporting other family
members by providing a valuable package of retirement, disability,
and survivors insurance.

For the average wage earner with a family, Social Security survivor
benefits are equivalent to a $300,000 life insurance policy and a
$200,000 disability insurance policy.  So every worker benefits
from Social Security today, whether or not they are receiving a
cash benefit.

If we abandoned the system now, as some are suggesting, we will
force millions of people into poverty overnight.  If we allow
individuals to opt out of the program or refuse to pay into the
system, millions of people will suffer right away.  That would be
irresponsible and reckless, and I can't imagine anyone supporting
such a position.

The truth is Social Security works today, and it will work in the
future.

Social Security was designed to provide a base of economic security
for all workers and their families.  According to the Trustees,
Social Security is well financed for the next thirty-five years,
and can be made actuarial solvent for the next seventy five years
with a few modest changes such as the ones outlined in my bill,
H.R. 1043.

I would be happy to debate the merits of any investment option,
but I would just point out that under this bill a small portion of
the Trust Fund is invested in broad index funds independently
managed by professional investment managers under the supervision
of a non-political, independent board.  This is the lowest cost,
most efficient, and most prudent way of increasing the rate of
return on Social Security assets and is supported in principle by
the current Administration.

This proposal deserves more careful scrutiny in light of the negative
effects of many of the alternative approaches.  Remember, under
this proposal there is no cut in benefits, no increase in the
retirement age, no individual risk for beneficiaries, and no tax
rate increase.  It will also enable the government to meet its
future payment obligations without massive cuts in other needed
federal spending or increasing the publicly held debt.

Thank you.

Representative Jerrold Nadler