“Yes, the responsible allocation of trust fund payments would have helped the situation. But the simple truth is that no human society in history has ever been able to function well with large numbers of its members living for extended periods of time without working productively. Heck, the whole concept of “retirement” is nothing more than a construct of the modern welfare state.”
You make a good point. Retirement security is very challenging. Fiscally responsible policies are a prerequisite but there is no assurance that responsible policies would have been sufficient. Fiscally responsible policies would have added trillions in private savings to fund retirements. I also think that savings (instead of government guarantees) would have modified behavior. Voters would have realized that their retirements are dependent on fiscally responsible behavior instead of voting themselves someone else’s income and assets. The system would be self correcting with individuals reacting to changes in their worth by working and producing more if necessary.
The situation is the opposite now. We have almost half of the population believing that the other half should fund their lifestyles both before and after retirement. We have many individuals who sincerely believe that government can guarantee their financial security. They believe that confiscatory taxation is the key to equality and fairness for all.
My mother always told me that social security was meant to supplement one’s savings, not replace them. Didn’t anyone else receive this message?