Where do Whigs stand on Social Security?

Unlike most parties and political organizations we do not just spout out a policy based off of an ideology, we work differently. We are currently going researching policy options and proposals in our Whig Roundtables which will be launched soon. This will put forth policy ideas that have been researched and debated and found to be effective policies to keep Social Security established to be there in some way, shape, or form for future generations.

Most Whigs would tell you that they think Social Security needs to be reformed by making sure that the government stops dipping into its funds for other needs. Also, it will most likely need to be reformed because the number of workers supporting those drawing Social Security has changed since it was designed, it is all based on population ratios. Also, means testing should be initiated to make sure that those who really need Social Security are getting while those who don't are not. Tough decisions need to be made but these decisions need to be made to make sure Social Security exists to help out and supplement personal retirement and pension savings.

mep
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Joined: 07/17/2012

What type of incentives do you propose for people who wouldn't collect social security? If someone pays into it, it seems unfair that they shouldn't get any money later because they're considered by the government as not needing it.

gene
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Executive CommitteeWhig
Joined: 04/08/2011

True. The needs testing does not eliminate the benefit, but fully taxes it.

The thing that bothers me is that ALL private pensions like this are very special segregated accounts. The only time they were "raided" by corps were when they showed an actuarial surplus.

The way US SS works, it hardly ever shows a surplus, as it is not an actuarily sound system. Yet, we ought make it entrely segregated and beyond any political machinations.

It is , as its been called, a Ponzi type scheme that requires current contributions to maintain liquidity.

As its investments can only go into US Treasuries, it is also curently sufferring from a very low rate of return. I would hazard to guess as the 10 year Treasury yields less than 3%, and the SS system sees alot of premature payouts, I would reckon the actual return is near zero.

How can the American public expect politicians who cannot even come close to balancing a budget, and who glaze over the basic details of sound financial mamangement, to handle anything like a pension scheme.

That, to me, is the core issue. Make SSN fiscally sound and stop using it as a margin loan for political ends.

Since many workers no longer have pensions, this is one of the few annuities available to the public. There is nothing wrong with that. Yet, it needs to be controlled and managed much better.

Privitization has its own set of problems, not least of which is that privatization will simply not work with a grossly underfunded system as this one is. I consider calls for privatization misguided at best.

Years ago the Reps were all about privitization, calling for allowing younger workers to opt out of the system and do their own investing. Two fails: 1.) the system would enttirely collapse due to lack of funding, and 2.) many folks simply dont have the discipline to save. That is an observation gleaned from twenty years experience in the 401K marketplace.

Gene Chaas, CFA
Charter Member of MWP (2008)

NY Whig - State Committee Chair

MWP - Northeastern Regional Chair

www.nywhig.org

 

MAGGIEB
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Joined: 11/07/2013

Personal SS accounts while not allowing the government to spend one penny makes sense to me.  http://danieljmitchell.wordpress.com/2010/08/25/chiles-private-social-se...

 

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