RE: Opening statement--investment in stocks, bonds etc

[James <jamesk_51@hotmail.com>]

From: Javier Jimenez

Subject: RE: Opening statement--investment in stocks, bonds etc



>>>> "Mr. Chairman, let me conclude with a warning about the damaging moral effects of unfunded social security and other entitlement programs issued at the dawn of the New Deal: The lessons of history, confirmed by evidence immediately before me, show conclusively that continued dependence on relief induces a spiritual and moral disintegration fundamentally destructive to the national fiber. To dole out relief in this way is to administer a narcotic, a subtle destroyer of the human spirit. It is inimical to the dictates of sound policy. It is a violation of the traditions of America."

>>>>That warning was issued by President Franklin Delano Roosevelt in his 1935 State of the Union address.

Very interesting. I think you are a little confused. It doesn't appear that the first part of the quote (before the colon) is from FDR at all. And, having found the original quote, it looks like our leg is being pulled here, that the first part is a description that doesn't fit the context at all. Here is what I found:

http://newdeal.feri.org/speeches/1935a.htm

23. "A large proportion of these unemployed and their dependents have been forced on the relief rolls. The burden on the Federal Government has grown with great rapidity. We have here a human as well as an economic problem. When humane considerations are concerned, Americans give them precedence. The lessons of history, confirmed by the evidence immediately before me, show conclusively that continued dependence upon relief induces a spiritual and moral disintegration fundamentally destructive to the national fibre. To dole out relief in this way is to administer a narcotic, a subtle destroyer of the human spirit. It is inimical to the dictates of sound policy. It is in violation of the traditions of America. Work must be found for able-bodied but destitute workers."

So what is FDR's point and in what context? Check out the link. He is arguing for a public works job program to replace the welfare payments to the unemployed masses. Nothing to do with our current SS discussion at all. Unrelated to pay as you go or pre-paid retirements. So what did FDR say about SS:

http://newdeal.feri.org/speeches/1935b.htm

9. "In the important field of security for our old people, it seems necessary to adopt three principles: First, noncontributory old-age pensions for those who are now too old to build up their own insurance. It is, of course, clear that for perhaps 30 years to come funds will have to be provided by the States and the Federal Government to meet these pensions. Second, compulsory contributory annuities which in time will establish a self-supporting system for those now young and for future generations. Third, voluntary contributory annuities by which individual initiative can increase the annual amounts received in old age. It is proposed that the Federal Government assume one-half of the cost of the old-age pension plan, which ought ultimately to be supplanted by self-supporting annuity plans."

FDR is clearly arguing for a system in which the workers make 'contributions'. Would he like some of the Reforms which provide for a gov't means-tested retirement benefit to provide for a sizable segment of the working poor's retirement funded by general revenue and unrelated to any 'contribution'? Well, we can't ask him, but his words say:

"The lessons of history, confirmed by the evidence immediately before me, show conclusively that continued dependence upon relief induces a spiritual and moral disintegration fundamentally destructive to the national fibre."

I don't think he would!