Hagel and Social Security

Chuck Hagel visited the University of Nebraska-Lincoln on Monday to introduce his new social security plan. It's somewhat similar to the President's plan in that there is still the option for private accounts. I did not go to Hagel's presentation (I listened to it), but I did see the President when he was in Omaha nearly a month ago. The idea of personal accounts sounds like a good idea when taken at face value. The problem is, when one starts to think about it logistically it doesn't quite play out so well. If people now take their current revenue that they're paying into social security and put it into a private account, a funding gap is created. In other words, they aren't paying money into the system to support it right now. To remedy this problem, the U.S. would have to borrow money to fill the gap. Maybe private accounts will be a successful alternative to social security in the future, but they will have to be phased in very slowly and very cautiously. Hagel's proposals of changing the benefits for future beneficiaries seems like a logical step in reforming social security. Ultimately, if the system stays like it is right now it will be broke within the next half a century. Something will have to be done and I think Hagel may be on the right track, despite what some rude hecklers said during his speech at the University.

For more info on Hagel's proposal and his visit to the University of Nebraska:
http://www.dailynebraskan.com/vnews/display.v/ART/2005/03/08/422d45b6cd488?in_archive=1