OP/ED: Romney and Ryan Could Privatize Social Security

It is no secret that Paul Ryan has spent much of his Congressional career seeking to undermine Social Security.  In 2005, Ryan and Senator John Sununu introduced a partial privatization proposal that was so extreme the Bush Administration, then in the midst of developing its own proposal, described it as a “’bad idea.’”  

To create the private accounts, Ryan and Sununu would have taken funds from Social Security, which would have required the government to borrow $2.4 trillion during the plan’s first decade alone.  According to the Center for Budget and Policy Priorities, over 75 years, this would have required the transfer of $8.5 trillion from the rest of the government’s budget.  Ironically, in 2005, only $3.7 would have been needed to make Social Security solvent for 75 years.

This was not the only time Ryan advocated partial privatization.  He went on to co-sponsor George W. Bush’s privatization proposal in 2005.  Later, Ryan proposed a Roadmap for America which would have allowed individuals 55 and younger to invest a third of their payroll deduction in private investment accounts (http://roadmap.republicans.budget.house.gov/issues/issue/?IssueID=8521).  

In his recent debate with Vice President Biden, Representative Ryan reiterated his support for partial privatization.  According to him: “What we said then and what I've always agreed is let younger Americans have a voluntary choice of making their money work faster for them within the Social Security system.”  

The problem with this is that Social Security is not an investment program but a social insurance plan.  It provides income support to older adults, individuals with disabilities, and the children of working parents who die.  Ryan himself received these benefits when his father passed away prematurely.  

Turning Social Security into an investment program would defeat its purpose. As we have seen over the past decade, investing in stocks and bonds is fraught with risk, while Social Security has always delivered.  According to the Social Security Trustees, it will remain solvent until 2033, after which it will still be able to meet around 75 percent of its obligations.  Addressing this shortfall will not be difficult.

Representative Ryan is only running of course for vice president.  If the Romney-Ryan ticket wins, Romney will still be calling the shots.  This however is little comfort since Governor Romney has also had a history of supporting private accounts.  In addition, the 2012 Republican platform essentially supports private accounts (See page 23).

Although Governor Romney has not mentioned private accounts recently, his history of changing his positions precipitously and his choice of Representative Ryan are not reassuring.  Older adults and their families should keep these facts in mind as they consider who to vote for in November.

Stephen Gorin is executive director of the New Hampshire Chapter of the National Association of Social Workers.