Sunday, August 29, 2004

Social security: An issue for the state or the individual?

Inspired by Miguel's wish list for what kind of candidate he would vote in the upcoming US election I want to say something about one of the issues he mentioned: social security.

I am not a fan of the German social security system (anymore). It is just too expensive. We are in the middle of a painful reform process.

Some people think we should abandon a federal system of social security altogether. Maybe we should leave it to the individual citizen to take care of building up his retirement funds, choosing med insurance, doctors, hospitals, schools,... whatever. I think, however that this is not as fair as it sounds.

Of course, I don't like the idea that a hard working tax payer finances a 24/7 vacation of others.
But being able to choose in the social security sector is a good thing only if you have equally good options to choose from.
I don't think that is the case in any country in the world. Therefore I think that some sort of government spending is required to ensure the constitutional rights, especially equal opportunities. The old German system was too expensive, had some loopholes, needed reform. I doubt that the new German system will be perfect, I hope it will be better than the old one but I am not sure.

But I am sure that a social security system that is not based on solidarity in the broadest sense violates the principles of democracy and can eventually lead to its downfall. It doesn't even need a revolution for that. Social peace is important to make sure that the state is supported by its people. Government systems that don't have the support of its people become powerless and will eventually vanish.

I am convinced that a solidarity-based social security system is a prerequisite for social peace. And social peace is a prerequisite for a democracy.

1 comment:

Miguel Centellas said...

I don't like welfare state systems in general, though I do recognize that states should provide for at least some common public needs (national defense, for example). And I'm not opposed to the state having a pension plan, per se. But I do think that individual US citizens should be given the option to put at least some significant portion of their Social Security money into private pension accounts.

My reason is that it would be more egalitarian, actually. As it is, rich people pay into Social Security also. But they have the extra money to set up their own privately managed pension plans. Poorer people don't have that option. So it's like w/ charter schools: give poorer people the freedom to exercise the same kind of choices rich parents can.

For me, a good state doesn't just provide a minimum crappy standard for everyone. Instead, a good state allows everyone to exercise the same field of choices.