FDR on Private Accounts

Fire of Liberty

FDR said this in a January 17, 1936 Message to Congress:

"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."

I guess the boo-birds last night need to take a double take. It seems the congress has kicked this can down the road as far as it can go. FDR might have been a devotee of Keynes but he knew that the system needed more self-sufficency or it would be the straw that broke the camel's back or better yet the nation's. Even FDR knew the power of choice.

To learn more about this, check out this article.

Let the debate begin.