“It won’t be broke until 2042, so why are they trying tomess with it in 2005.”

– Congressman Bennie Thompson on the Social

Security system

Hmmm. Seems like the captain of the Titantic made a similar typeof comment prior to the ocean liner’s fateful collision with theiceberg that fateful night.

Congressman Thompson’s comments came during a meeting last weekwith about 100 constituents to discuss the Social Security system.Thompson was expressing his opposition to the plan currently beingpromoted by President Bush, saying he supports minor changes but isopposed to the overhaul being proposed by the Republicanpresident.

Thompson brought along Priscilla Chatman of the NationalCommittee to Preserve Social Security and Medicare to back up hiscomments and update the meeting’s participants on the proposedchanges to the system.

Chatman commented that the average monthly Social Securitybenefit for residents in the Second Congressional District is $815with $85 million paid monthly to residents of the district.

Two troubling comments came out of the meeting: thecongressman’s flippant attitude toward the problems facing thesolvency of the Social Security system and Chatman’s comments aboutthe system being a retirement plan.

Since its inception in 1935, the Social Security system wasnever designed to be a retirement plan; it was created as asupplement to an individual’s retirement, not to be theindividual’s sole support.

As recently as 1950, there were 16.5 workers paying into thesystem for every one person receiving benefits. Currently, thereare 3.3 workers paying in for every one retiree receiving benefits.It is predicted within 15 years that that ratio will drop to 2.2 to1 and then to 2 to 1 by 2040.

Not even Congressman Thompson can argue with the demographictrends of the baby boom generation as they begin reachingretirement age and start drawing on the system. As baby boomersstart hitting the magic age of 62 and opt for early retirement,there is no way the current system can be maintained without eithercutting benefits or increasing taxes.

The debate needs to continue on the president’s plan forpersonal savings accounts. The concept has its pluses but also hasminuses, which must be sorted out if we are going to ensure futuregenerations a plan. However, despite the howls of detractors sayingpersonal investment is a risky way to save for retirement, millionsof individuals do it every day. In fact, according to JeremySiegel, professor of economics at the Wharton School of Business,from 1802 through 2003 the broad stock market provided real returns- adjusted for inflation – averaging 6.8 percent each year.

So on the average, the stock market has allowed investors todouble their purchasing power every decade.

At least Bennie Thompson acknowledges the system will be broke.That’s more than many of his Democratic colleagues are willing toadmit. But one has to wonder why Democrats are not willing to startworking to fix it instead of playing politics and leaving it tofuture generations to fix.