A FIRESIDE CHAT ON THE FOUNDATIONS OF SOCIALSECURITY: EVIDENCE OF ADMINISTRATIVE AND LEGISLATIVE INTENT

Kimberly A. Houser Washington State University

Robert E. Rosacker University of Wisconsin – La Crosse

The University of South Dakota 

ABSTRACT

Politicians, political pundits, social advocates, comedians, and academic researchers alike continue to debate the economic viability of the current social security system.   While there   is no doubt that the current arrangement of intergenerational transfers is unsustainable into the future—a future that will occur quite soon—those debating the issue must start from a basic understanding of what social security is and what it was meant to accomplish before a revised solution can be developed and legislated. It is into this conversation that the current research is directed. The focus of this research effort is historical in nature. It targets attention at the two former concerns leaving the future of social security at bay for the present. First, a historical review and consideration of the pronouncements and actions by the political advocates for a social security system, including President Franklin D. Roosevelt and his Cabinet, in the 1930s is presented and analyzed.                         This review is guided by an exhaustive consideration of the term “insurance” as used in the Federal Insurance Contribution Act, the legislation that created and maintains today’s system of social security, in order to address the ambiguity surrounding concerns of administrative and legislative intent. Second, a review of political pronouncements   and administrative statements subsequent to the enactment of social security is given to formulate an evolutionary understanding of the benefit program.  In combination, these two historical antecedents will provide a lens through which a firmer understanding of social security can be developed without the blurring effects often associated with political posturing, thus providing a solid foundation to support discussions directed at resolving this important issue.