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The justification for Social Security was that the system had failed the people, by revealing instabilities beyond their control, and therefore needed a systemic solution. It was never that the majority of people couldn't look after themselves. Additionally, it became cheaper for companies to offer benefits in the post- War period, in lieu of pay increases, and now it is typical for workers to be vested in one or more pension plans, generally with death benefits for spousal dependents. Thus, the entire rationale of Social Security bears re-examination, as the financial system has become more stable, and pensions are ubiquitous. The "safety net" features should become means tested, as Les Horowitz has argued in the past, while freeing most of it for private investment. Even if we decided that we would enforce a savings level to equal the current rate of contribution, or regulated the type of investment possible, it would be an improvement over the current system........ |
