The Social Security system "is now a monolith, the single largest spending activity of the federal government," writes Hoover visiting fellow David Koitz in his new book from Hoover Press, Seeking Middle Ground on Social Security Reform (Hoover Press, 2001).
"Despite this attention and calls for change, nothing of any notable significance has been done," he writes.
The "clash of policy concepts-social insurance versus wealth creation" has made the Social Security question seemingly unsolvable in today's political climate, Koitz explains. This book looks at both the Republican and the Democratic Parties plans for Social Security, showing how each confronts significant ideological and political hurdles.
Koitz finds major questions looming for reformers. Should the nation use budget surpluses to support the program? Should different means of funding, of calculating benefits, of eligibility be developed?
"Today's ardent proponents of reform see less need for a 'governmental hand' and greater opportunities for workers to individually provide for their retirement years and potential disabilities, opportunities that offer greater choice and greater rewards both to individuals and the nation as a whole," writes Koitz.
However, when it comes to defining the future role of Social Security, clear lines divide Republicans and Democrats.
"From the Republican perspective, setting money aside for retirement, death, and disability does not have to be done through a massive governmental program," writes Koitz.
"Conservative reformers want a new system entirely," Koitz adds, "one that responds more directly to the actions that individuals take for themselves."
Those defending the present system, he notes, are quick to point out that concerns over Social Security are being considered during a period when no immediate crisis exists. They argue that "since the system's not broken, it doesn't need fixing," making for even greater difficulties in finding common ground for reform.
There are some "fragments of common ground" Koitz finds. Notably, the "emergence of unified federal budget surpluses and the broad support for using them in some fashion to alter Social Security."
Ultimately, Koitz points out, "for meaningful action to occur, both parties and ideological camps would have to compromise on their respective positions about the role of government and the role of the individual."
David Koitz, a visiting fellow at the Hoover Institution, has worked extensively with the House Ways and Means and Senate Finance Committees on Social Security issues. He has been with the Congressional Research Service of the Library of Congress since 1979, part of his thirty-year career working as a nonpartisan policy analyst.
The Hoover Institution, founded at Stanford University in 1919 by Herbert Hoover, who went on to become the 31st president of the United States, is an interdisciplinary research center for advanced study on domestic and international affairs.
