FDR's 401k plans

FDR comes out in favor of privatizing Social Security.

In 1935.

Even he saw he a demographic nightmare coming, and he envisioned his program giving way to a government sponsored 401k plan:

"In the important field of security for our old people, it seems necessary to adopt three principles: First, non-contributory old-age pensions for those who are now too old to build up their own insurance. It is, of course, clear that for perhaps thirty 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."

- Franklin Roosevelt
MESSAGE TO CONGRESS ON SOCIAL SECURITY- January 17,1935

I had been curious about the above quote. Jon Henke found it.

It is entirely possible that this election will turn on Social Security. John Kerry might just manage to scare enough old people into voting for him.

Certainly, they are entitled to the money that all these young whippersnappers are earning. All Kerry has to do is lie and tell them there's nothing wrong with the program.

He'll say, in effect: Don't worry, geezers, you'll be dead and I'll retired from politics when the bills come due!

He is capable of doing that. That alone could win him Florida and Arizona (two states where retirees are potent voting blocs).

After all, didn't these old people vote themselves a comfortable, government-financed retirement, back before these upstarts were even born? How dare anyone think of taking it away!
- posted by total @ 3/03/2004 05:32:00 AM .