May 9, 2005

Roosevelt's Social Security plan included private accounts

By Noel Sheppard
Franklin Delano Roosevelt's original Social Security plan included provisions that would have allowed people to make personal investments — not altogether different from the private accounts that President Bush is currently proposing.  In fact, this was one of three 'necessary principles' in FDR's legislative package presented to Congress on January 17, 1935: "In the important field of security for our old people, it seems necessary to adopt three principles: First, non—contributory old—age pensions for those who are now too old to build up their own insurance. It is, of course, clear that for perhaps thirty years to come funds will have to be provided by the States and the Federal Government to meet these pensions. Second, compulsory contributory annuities which 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...(Read Full Article)