The World: Life Before Social Security; 'A Great Calamity Has Come Upon Us'
The World: Life Before Social Security; 'A Great Calamity Has Come Upon Us'
By ROBIN TONER
Published: January 23, 2005
''A great calamity has come upon us, and seemingly no cause of our own,'' declared a 69-year-old architect, one of millions of Americans who wrote to President and Mrs. Roosevelt, pleading for help. ''It has swept away what little savings we had accumulated and we are left in a condition that is impossible for us to correct.''
BY 1934, it was not hard to make the case for Social Security. The Great Depression had devastated employment, pensions, the stock market and savings. Many older Americans, and their beleaguered children with families of their own, found themselves suddenly and shockingly in economic freefall.
''A great calamity has come upon us, and seemingly no cause of our own,'' declared a 69-year-old architect, one of millions of Americans who wrote to President and Mrs. Roosevelt, pleading for help. ''It has swept away what little savings we had accumulated and we are left in a condition that is impossible for us to correct.''
As Congress begins a debate over the future of Social Security -- whether to allow Americans to put some of their Social Security taxes in private investment accounts -- the relevance of this history will be a matter of fierce dispute.
Isn't it time, many Republicans argue, to reinvent a Depression-era program for a more financially savvy generation that trusts, rather than fears, the market? Or, as Democrats assert, are Republicans ignoring a cautionary history that highlights the value of a guaranteed government benefit?
Even in 1934, historians say, it was not easy to resolve the political tensions over what an individual could and should accomplish on his own, and what Americans could do better together.
Roosevelt, his labor secretary, Frances Perkins, and the other architects of Social Security tried to construct a peculiarly American form of social insurance, one that recognized the strain of rugged individualism that runs deep in the national psyche.
Roosevelt insisted that the new program not look like a dole, his aides later explained; rather, it should resemble a private insurance plan, tied to an individual's contributions in their working years. ''You want to make it simple, very simple,'' Roosevelt told his aides, Perkins later wrote in a memoir. ''Just simple and natural nothing elaborate or alarming about it.'' Along the way, the New Dealers set aside the idea of adding national health insurance to the package, assuming that it would come later. (It never did.)
Even so, Perkins wrote that when she went before Congress to present the plan, Senator Thomas Pryor Gore of Oklahoma had a pointed question.
'''Isn't this socialism?' he asked me. My reply was, 'Oh, no.' Then, smiling, leaning forward and talking to me as though I were a child, he said, 'Isn't this a teeny-weeny bit of socialism?'''
David M. Kennedy, the Stanford historian and author of ''Freedom From Fear: The American People in Depression and War,'' said that he found it paradoxical that the current debate over Social Security ''is being couched in terms of individual ownership and privatization of the system, when those kinds of ideas deeply informed the way the original Social Security system was put together.''
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