Let me begin by stating my bias right up front, Chuck Blahous is one of my policy heroes. While Washington, DC increasingly seems occupied by partisan vitriol and ad hominem attacks, and media rhetoric takes precedent over substance, Chuck has made a career being an honest-broker. He has a reputation for "telling it like it is" and respecting alternative viewpoints. Chuck has a talent for explaining complex policy issues in manner that is understandable to policymakers, journalists and the public. His book, Social Security: The Unfinished Work, is a testament to Chuck's legacy and is truly a must-read for anyone interested in saving Social Security and ensuring that a treasured program that provides income support for millions of Americans survives for future generations.
In this book, Chuck tells the story of how, over time, Social Security emerged to become one of the nation's most cherished domestic programs. At the beginning of the book he sets the tone in a "Memorandum to the President and Congress" tackling one of the enduring myths surrounding the program today - that we don't have a financing problem until 2037. Further, unlike some reporters in the popular press , Chuck responsibly lays out the truth of the matter -- that we must take action NOW to reform Social Security. Failure to act sooner rather than later guarantees either that Social Security beneficiaries will have to endure an approximate 25% cut in benefits when the trust funds become insolvent in 2037 or that payroll taxes to fund Social Security will have to increase at that point approximately one-third (33%) or more.
By continuing to delay reform, future reform solutions are likely to be less equitable and cause greater economic harm to beneficiaries and/or taxpayers. Chuck points out that if we act soon, not only can we protect current beneficiaries, but we can ensure future retirees will still get higher benefits tomorrow, even relative to inflation. Additionally, Chuck deserves high praise for tackling another myth -- that raising the retirement age is a cut in benefits for everyone. It's not! Raising the retirement age to reflect that workers today are living and working longer just reduces the growth of benefits and keeps the program inline so that real benefits don't increase more rapidly than warranted. For those that are disabled or due to labor-intensive jobs can't work pass the minimum age eligible for benefits (62), a guaranteed protected minimum benefit can be put in place. Also, we can't forget that there is an element of personal responsibility in our society and people have to contribute to their own retirement savings.
In his book, Chuck takes us on a tour of Social Security, from the origins of the problem, to the 1983 Greenspan Commission, all the way to asking whether there is a role for personal accounts. Chuck points out that we need to have a serious public discussion about what the Trust Funds actually are and what they mean financially. He additionally points out that the 1983 reforms were not designed to run large surpluses, but rather that the surpluses were actually an unwitting byproduct. Further, Chuck details why we need to have a discussion of whether we want Social Security to be a pay-as-you-go system, a fully-funded system or somewhere in between and what the economic trade-offs are under each option.
While some of our political leaders might be content to continue kicking the reform can down the road, at least there are people like Chuck Blahous that continue to fight the good fight to make sure future generations have the same financial security afforded by Social Security as do today's beneficiaries.
Social Security recently celebrated its 75th birthday. As a former employee of the Social Security Administration (I had the pleasure of serving as the #2 in the Deputy Commissioner position), I have seen the pride and commitment that SSA employees deliver every day to the public. And I have seen firsthand how important Social Security is to millions of Americans. I want to make sure the program continues. Chuck Blahous wants to make sure Social Security continues. If you do too...you'll read this book and join the debate.