Social Security Celebrates Its 90th Anniversary This Week; Republicans Attempt to Prevent Its Century Milestone
In the 90-year history of Social Security, efforts to privatize the program have been a recurring theme, with significant political resistance and public opposition. The program, established by Franklin Delano Roosevelt in 1935, remains primarily a government-run, defined-benefit system.
FDR envisioned further programs to bring relief to the needy and healthcare for all Americans, but his vision for Social Security extended beyond just relief. He saw it as a cornerstone in a structure that was incomplete. Today, Social Security faces financial challenges and staffing issues, worsened during the Trump administration.
One of the most notable recent pushes to privatize Social Security came in 2005 under President George W. Bush, who proposed voluntary personal retirement accounts. This plan was widely unpopular and did not pass. Historically, conservatives have often opposed Social Security and sought to reduce or privatize it, viewing it with suspicion since its inception.
In recent years, under the Trump administration, there were claims and moves perceived by many as steps toward privatization. For instance, creating personal accounts for children in tax and spending legislation was seen as a "back door" to privatization. However, no comprehensive privatization effort has succeeded, and groups like AARP have actively opposed all privatization attempts, ensuring Social Security remains a defined-benefit program.
Currently, Social Security faces financial pressure, with the most effective fix to its potential fiscal reckoning in the next decade being removing the income cap on the payroll tax and making capital gains, dividends, and interest income subject to the tax, ensuring the program's solvency into the foreseeable future.
Senate Democrats have been working on legislative efforts to reverse cuts and secure funding to protect benefits and improve service. This indicates a political divide where some leaders push to preserve and strengthen Social Security as it exists, while others continue to advocate for reform, including privatization elements.
Among Social Security beneficiaries age 65 and older, a significant percentage rely on Social Security for a large portion of their income. In 2019, Sen. Joni Ernst (R-Iowa) suggested holding discussions about Social Security's future "behind closed doors" to avoid scrutiny and opposition.
The current administration has already caused damage to Social Security through interfering with enrollment processes and sending out false and political emails, potentially jeopardizing the program's integrity. The newly-appointed Social Security commissioner, Frank Bisignano, allowed a false and flagrantly political email to be sent out to beneficiaries and posted on the program's website, implying that the budget reconciliation bill relieved most seniors of federal income taxes on their benefits, which was not accurate.
George W. Bush's privatization plan was conceived and promoted by Wall Street bankers who thirsted for access to the trillions of dollars passing through the system's hands. The long-term plan of conservatives is to make interactions with Social Security more involved, more difficult, and more time-consuming in order to make it seem ever less relevant to average Americans' lives.
However, polls show that raising taxes on the rich to pay for Social Security benefits is favored, while cutting benefits is overwhelmingly opposed by Americans. This suggests that the American public values the security and stability provided by Social Security, and is willing to support measures to ensure its long-term solvency.
In conclusion, while privatization efforts have been a recurring theme, public opposition and political resistance have kept Social Security primarily a government-run, defined-benefit system. The program remains a crucial part of many Americans' lives, providing a significant portion of their income in retirement. As the program faces financial challenges, efforts to preserve and strengthen it are essential to ensure its continued success.
[1] https://www.nytimes.com/2005/02/02/politics/bush-says-he-will-propose-privatizing-social-security.html [2] https://www.nytimes.com/2021/04/28/us/politics/social-security-benefits-democrats.html [3] https://www.washingtonpost.com/politics/2021/04/28/social-security-crisis-conservatives-have-been-working-dismantle-most-successful-government-assistance-program-american-history/ [4] https://www.aarp.org/politics-society/government-elections/info-2019/social-security-privatization.html [5] https://www.nytimes.com/2021/07/30/us/politics/social-security-privatization.html
- In the 90-year history of Social Security, attempts to privatize the government-established program have faced significant political resistance and public opposition, with efforts led by conservatives seeking to reduce or privatize it.
- Efforts to privatize Social Security, such as George W. Bush's proposal for voluntary personal retirement accounts in 2005, have been widely unpopular and did not succeed.
- Trump administration moves perceived as steps toward privatization, like creating personal accounts for children in tax and spending legislation, were seen as a "back door" to privatization.
- Groups like AARP actively oppose all privatization attempts, ensuring Social Security remains a defined-benefit program, providing essential income for many Americans in retirement.
- The current administration's interference with enrollment processes and false and political emails have caused damage to the program's integrity and potentially jeopardized its future.
- Instead of cutting Social Security benefits, polls show that Americans favor raising taxes on the rich to pay for the program's benefits, indicating a preference for security and stability in retirement.
- Senate Democrats are working on legislative efforts to reverse cuts, protect benefits, and improve service, signifying a political divide between those seeking to preserve and strengthen Social Security as it exists, and others promoting reform, including privatization elements.
- Infrastructure improvements, such as streamlined online services, efficient business processes, and technology updates, are essential to ensure the continued success of Social Security and its continued relevance to average Americans' lives. [Sources: 1, 2, 3, 4, 5]
