Social Security is like all other entitlement programs: it started out as a good idea...
No, it didn't. It started out as a bad idea, and got worse. Entitlement programs are always a euphemism for theft.
I would like to see something done with SS. I'm not too impressed with Pres Bush's plan though. It seems he will be taking $ out of the present system to fund the new system. Robbing Peter to pay Paul. I have to admit I don't have a better idea though.
There are only a couple of economically sound solutions to the SS mess:
1. Reduce benefits to what can be afforded by SS income;
and/or;
2. Increase contributions to pay for benefits in the future.
I think there are two problems here. Short-term solvency, how to pay the people receiving benefits right now, and long-term solvency, how to pay the people who are going to retire in 40 years (like me).
In the short-term, there is no way out of it. Like Preacherman said, benefits are going to have to go down or taxes are going to have to go up. Or both, probably. In that sense, TimH, I think you are right. Bush's plan won't address short-term issues.
However, his plan does address the long term problem. If we keep on the way we are going SS is just going to get more bloated and suck in more moeny. Phasing in private accounts is a way to actually start funding peoples' retirement with their own money and allowing them to develop an asset, rather than simply redistributing money from the young to the old in hopes that there will still be a big enough tax base to do the same for the young when they retire. Private accounts would vastly reduce the amount of government infused into the system to keep it going. And the accounts will actually generate real interest, instead of a government-mandated increase every year so people will get a decent return on their money.
In the short term, it's going to be ugly. But to do something besides prolong the problem and just make it worse (as more and more Baby Boomers retire and the working force continue to shrink) I think private accounts are about the only chance for long-term solvency.