As elections go, I’m glad this one’s gone. Though it played almost like an encore of 2000, at least a clear winner emerged without sending in the legal deus ex machina waiting in the wings.
Now, I have a request for President George W. Bush in his second term: Be careful with Social Security.
My knee-jerk response is, If it’s not social, it’s not security. Things happen. There needs to be a safety net.
In my own life, I don’t mind a bit of privatization. I’ve invested in stocks for a few years now, and I get decent returns (and even got a nice boost from a decisive Nov. 2 - thanks Mr. Bush). Many people are not. This country spills over with wealth. We should not curse the elderly to panhandling from the deserving and fortunate for a few bad choices with their money. Bad choices abound in 21st century America, and people have a penchant for choosing them.
Having a “starving the beast” mentality on federal social programs has another long-term effect, and X- and Yers need to pay attention. As boomers retire, the Social Security entitlement will grow rapidly unless the American people scale it back or fund it more. Between now and 2029, about 76 million boomers will retire. According to the article, in American Demographics, the nation’s number of over-65s will double.
That age group’s pull on the nation’s working resources will prove enormous. Now, consider dealing with this as a starved federal beast. Generation X will bear the greatest weight of the retiring Baby Boom. And, Xers will bear that load during the years in which they try to make the greatest contributions to their own retirements.
Now, despite what politicians on both sides say, it seems a fairly simple equation. Our nation has upwards of 76 million baby boomers, and grim estimates of the cash expected to support them in retirement. If a shortfall, as projected, turns up, it’s either benefits or eligibility. Something has to get cut.
As I said, I don’t mind edging toward self-directed retirement saving - a bit. I don’t count on Social Security, and supplement a projected lack thereof with other investments, so I’m effectively already there. But, many hard-working people will.
So, as Bush tackles this issue, I ask that he consider these questions. What does the modest, but comfortable, lifestyle of our working class look like in retirement? What should it look like? What can it look like, and still be fair to generations that follow?