A Liberal Version of Social Security Private Accounts


Andrew Biggs, a conservative who served on George W. Bush’s Social Security commission, has gotten some attention for writing a piece in National Review today explaining that privatization is no cure-all for Social Security’s problems:

Personal accounts are a valid choice, and one I’ve supported in the past and continue to support. But accounts aren’t exclusive to tax increases or benefit cuts; they don’t, as I’ll explain, reduce the need for these other choices. One problem for the Bush administration’s reform drive in 2005 was that many congressional Republicans had bought into the idea that accounts reduce or eliminate the need for tax increases or benefit cuts. Finding out they don’t may have taken some wind out of their sails. Because of this, combined with some pretty shameless demagoguery from the left, Bush’s reform ideas didn’t even come up for a vote.

Shameless demagoguery? Hold on a second. The left was indeed opposed to Bush’s plan, but a lot of the opposition was based on the fact that it was sold as a costless panacea, exactly the problem that Biggs himself identifies. My own position was (and is) that Social Security should simply be left alone for the time being, but that there are also some legitimate reasons to bite the bullet and shore up its financial position now — and if we do, “there’s nothing wrong with private accounts in theory as long as they’re properly accounted for, tightly regulated, and honestly funded.”

Don’t believe it? Click the link and my proposal for Social Security reform with private accounts is right there. Would liberals accept this if it were presented honestly? I don’t know, because no one has ever tried it that way. But they might. The problem is that “honestly” almost unavoidably includes some tax increases, and that kind of honesty just isn’t acceptable to current Republican dogma. So we’re stuck. There’s the dishonest approach, which Democrats won’t accept because it’s dishonest, and there’s the honest approach, which Republicans won’t accept because it’s honest. It’s hard to see the middle ground here.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.