Critics of President Bush’s plans for social security reform often hide their reflexive opposition to all things Bush behind a mask of “original intent”, claiming that the system has always been intended to make workers support retirees, so there’s something blasphemous about the private account system that makes everyone accountable for his own retirement. So let’s look at FDR’s actual intent, as expressed in this letter he sent to Congress in 1935:
In the important field of security for our old people, it seems necessary to adopt three principles: First, noncontributory old-age pensions for those who are now too old to build up their own insurance. It is, of course, clear that for perhaps 30 years to come funds will have to be provided by the States and the Federal Government to meet these pensions. Second, compulsory contributory annuities which in time will establish a self-supporting system for those now young and for future generations. Third, voluntary contributory annuities by which individual initiative can increase the annual amounts received in old age. It is proposed that the Federal Government assume one-half of the cost of the old-age pension plan, which ought ultimately to be supplanted by self-supporting annuity plans.
According to the Original Design, the Ponzi Scheme should have ended in 1965, and we should be well into a system of self-supporting annuity plans.
The question the reflexive critics really should be asking is why we aren’t.