We've been reading stories for years speculating what might happen once the Baby Boomers begin receiving Social Security benefits. Only now, it's actually happening; the first boomers eligible for early retirement are cashing their checks this month.
As a result, Facing Up to the Nation's Finances has convened a blog carnival to encourage commentary on what, if anything, we need to do to be sure Social Security remains solvent for future generations. Here at the Study Circles Resource Center (soon to be renamed Everyday Democracy), we know that widespread citizen engagement such as the Americans Discuss Social Security project pioneered a decade ago by AmericaSpeaks needs to be a key part of the process.
As we explored in the last blog carnival, our nation already faces $9 trillion in national debt - a figure sure to grow if we don't find ways to reduce annual deficit spending and rein in spending on such key big-dollar budget items as entitlements (Social Security, Medicare, etc.) and defense. And the bigger the national debt, the more strain we'll see on the economy as a whole. Click here to read the government's latest assessment of Social Security and Medicare solvency.
How can we best "fix" Social Security? Plenty of ideas have been floated:
In 2005, the Bush administration suggested privatizing Social Security by allowing American workers to put all or part of their Social Security money into the free market. Although the idea drew wide opposition, it still has its supporters. But because Social Security remains the foundation of many Americans' retirement money, would workers be willing to gamble their funds in the current stock market?
We could raise the retirement age. Wait a minute ... that's already happened: People who were born between 1938 and 1942 must work a few months past their 65th birthday; workers born between 1943 and 1954 must now wait until age 66 to retire with full benefits; and those born after 1960 will be working until age 67 to secure their full check. (Click here for a chart showing exact retirement ages.) Even with people living longer, how much higher do we want to go?
Some politicians and economists recommend increasing or eliminating the cap on earnings that are subject to the Social Security tax. As of 2008, earnings up to $102,000 are taxable. People earning less than that pay Social Security taxes on every dime they earn, while wealthier Americans pay only on their earnings up to that amount.
There may be no one easy answer to an issue that is now, with the first wave of Baby Boomer retirements, staring us right in the face. But citizen engagement needs to be a major part of the process that we'll use to find solutions and reach consensus. Ten years ago, AmericaSpeaks - an organization that seeks to reinvigorate democracy through increased public participation in decision making - involved nearly 50,000 citizens in all 50 states in a groundbreaking national discussion on Social Security. As the case study on AmericaSpeaks' website reports:
Americans Discuss Social Security had an immediate and direct impact on the Social Security debate. The project demonstrated the intense public interest in the future of Social Security reform and showed that Americans had more of a "middle ground" approach than special interests or lawmakers had believed. For example, contrary to insiders' expectations, participants overwhelmingly supported raising the cap on payroll taxes. These results were considered credible because of ADSS's neutral stance on the issue, the diversity of participants, and lawmakers' direct involvement in the process.
Other organizations have taken up the call for citizen engagementon this topic, too. Three years ago, with the privatization debate at its peak, the National Issues Forum published a discussion guide, "The Social Security Struggle: Fixing the Retirement System." In promoting the guide, NIF staff wrote, "With the retirement of the first baby boomers just a few years away, fundamental differences remain about how Social Security can be sustained and how it might be changed. It is a national discussion that we can't afford to put off any longer."
Well, it's three years later, and the future has arrived. Will 2008 be the year that we finally finish what AmericaSpeaks started and resume a true national conversation on whether and how to fully fund the safety net that we've promised to each other?
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