Bill Clinton State of the Union 1999************
Early in this century, being old meant being poor.
When President Roosevelt created Social Security,
thousands wrote to thank him for eliminating what one woman
called the "stark terror of penniless, helpless old age."
Even today, without Social Security, half our nation's elderly would be forced into poverty.
Today, Social Security is strong. But by 2013, payroll taxes
will no longer be sufficient to cover monthly payments.
And by 2032, the trust fund will be exhausted, and Social Security
will be unable to pay out the full benefits older Americans have been promised.
The best way to keep Social Security a rock-solid guarantee is not
to make drastic cuts in benefits; not to raise payroll tax rates;
and not to drain resources from Social Security in the name of saving it.
Instead, I propose that we make the historic decision to invest the
surplus to save Social Security.
Specifically, I propose that we commit 60 percent of the budget surplus
for the next 15 years to Social Security, investing a small portion in
the private sector just as any private or state government pension would do.
This will earn a higher return and keep Social Security sound for 55 years.
************
Therefore, in addition to saving Social Security and Medicare,
I propose a new pension initiative for retirement security in the 21st century.
I propose that we use a little over 11 percent of the surplus to
establish universal savings accounts -- USA accounts -- to give all
Americans the means to save. With these new accounts, Americans can
invest as they choose, and receive funds to match a portion of their
savings, with extra help for those least able to save.
USA accounts will help all Americans to share in our nation's wealth,
and to enjoy a more secure retirement. I ask you to support them.
FDR in a message to Congress of January 17, 1935
FDR presented the administration's proposal for a Social Security Act****
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
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.