Reengineering Social Security in the New Economy , by Thomas F. Siems, January 23, 2001. Thus far, the Social Security reform debate has taken place solely among conservatives. Liberals, including the Clinton Administration, have done little more than defend the status quo at all cost. Thus, while they oppose conservative privatization proposals, they have yet to put forward their own reform. There are indications, however, that ultimately liberals will make higher taxes the cornerstone of their Social Security rescue plan.
Liberals know as well as conservatives that the status quo is unsustainable.
But liberals also know that the longer Congress waits to enact reform, the stronger their position will be. That is because privatization requires a long lead time to implement. Thus by pushing off Social Security reform as long as possible, liberals handicap conservative alternatives. Signs are that higher taxes will be the main thrust, just as they were during the last big Social Security debate in 1983. At that time, Social Security faced a severe short-term financing problem and action had to be taken quickly.