Improving Old Ideas (Social Security Reform)

Nightly Business Report ^ | August 15, 2005 | Glenn Hubbard

[Choose Ye This Day]

GLENN HUBBARD, GRADUATE SCHOOL OF BUSINESS, COLUMBIA UNIV.:

Social Security turned 70 yesterday. This milestone birthday offers an opportunity to think about the goals we hold dear.

The original idea for Social Security from the Roosevelt administration was a proposal for economic security. An economic security agenda was hardly surprising after the depression of the early 1930s when many households lacked the resources to fund their golden years. The 1935 Social Security agenda ushered in a new role for social insurance in the United States.

In 1965 this was extended to health care for the elderly and low income individuals, in the introduction of Medicare and Medicaid.

Social Security remains an important subject in 2005, but today`s economy is very different from that of 1935 or 1965. With longer productive life spans, we need incentives for work in old age and to build retirement savings.

Growing costs of Medicare and Medicaid reflect in part a market for health care in which consumers lack incentives to minimize cost and maximize value. And financial innovation had made possible ways to save and share risks unheard of 70 years ago. These economic realities should shape policy towards economic security.

True security in our dynamic economy requires greater individual control of savings for retirement and health insurance. So happy birthday, Social Security, but let`s modernize economic security for many healthy and happy returns.

I'm Glenn Hubbard.

Glenn Hubbard, professor of economics and finance at Columbia University and former chairman of the White House Council of Economic Advisers under President George W. Bush.

[Choose Ye This Day]

Excellent commentary on NBR tonight. I'm surprised the PBS honchos let it on the air.

[Choose Ye This Day]

[Cobra64]

The original idea for Social Security from the Roosevelt administration was a proposal for economic security. An economic security agenda was hardly surprising after the depression of the early 1930s when many households lacked the resources to fund their golden years. The 1935 Social Security agenda ushered in a new role for social insurance in the United States.

Socialism. My wife and I want our $341,000 now - in CASH. If we'd invested this in the private sector we'd have over $3,000,000.

[Choose Ye This Day]

Dream on. I'd love to get mine back, too; ain't gonna happen.

I'd just like them to stop stealing from me from here on out. I guess I'll have to get elected to Congress...

[G-Man 1]

Has anything social ever worked? Ask C. Marks, National Socialist Workers Party, Cuba , Venezuel and China.Also Hellery.

[PGalt]

Thanks for the post.

The greatest fraud ever forced on "free" people.