In the important field of security for our old people, it seems necessary to adopt three principles: First, noncontributory old-age pensions for those who are now too old to build up their own insurance. It is, of course, clear that for perhaps 30 years to come funds will have to be provided by the States and the Federal Government to meet these pensions. Second, compulsory contributory annuities that 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 on Jan. 17, 1935]In short, FDR believed privatization of a portion of Social Security was the proper course to follow.
Wednesday, February 09, 2005
Duane D. Freese uncovered an interesting quote from Franklin Roosevelt concerning his vision of Social Security.