Newsmax guest suggests privatizing Social Security for younger Americans
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From the March 20, 2025, edition of Newsmax's Finnerty
ROB FINNERTY (HOST): Welcome back in to Finnerty, as we continue our series defending Social Security, something that millions of people have paid into for years. Decades of hard work, and we all assume that it's going to be there when we need it when we retire. But the retirement age could go up. That could happen. I asked a member of the Social Security subcommittee if the retirement age is going to go up, and he wouldn't give me an answer. Take a look.
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FINNERTY: OK. So that's got a lot of people concerned. We've heard a lot about that exchange over the last couple of days. The retirement age has steadily gone up from 62 to 65. It's 67 now. Before you know it, you know, people are just going to be dead and they'll let you retire. And we know that for any business to stay solvent, either your revenue has to go up or your expenses need to go down. And right now, neither of those things are happening with Social Security. And it's been that way for a long time. Joining us now for more, former two-time presidential candidate and chairman and CEO of Forbes Media, Steve Forbes, great to have you on.
STEVE FORBES (GUEST): Good to be here.
FINNERTY: I just want to ask you, in 1996, let's say you were the nominee, and I think you would have had a better chance than Bob Dole at beating Bill Clinton in 1996.
FORBES: Thank you.
FINNERTY: I do. Was Social Security something, you know, the third rail, so to speak? Was it something you plan to address in the White House?
FORBES: Yes, and I did it on the campaign trail in Arizona and won the Arizona primary, pointing out you don't have to change benefits for those people who are on the system are about to go on the system. But for younger people, bring in a new system, where part or whole of their payroll tax goes to their own personal retirement accounts. And that way, numerous studies have shown whether you just leave it in CDs, you'd have two to three times the retirement benefits that you get under the current system, and you would own it, not the Washington politicians.
FINNERTY: Right. I remember at that time, Bill Clinton was campaigning a little bit about his legacy, ultimately being reforming Social Security, but that never happened. Why?
FORBES: The Monica Lewinsky scandal came along. And so he was fighting for his life, fighting against impeachment. And so the issue went away. But Senator Moynihan, big Democrat from New York, was in favor of it. John Breaux, senator from Louisiana, Democrat, when Democrat Party had some real adults —
FINNERTY: Right.
FORBES: Was in favor of it. So I think the real change could be made. And one of the good things today, apropos of that congressman who wouldn't answer your question, is that Social Security supposedly runs out of funds on the assumption of a growth rate of 1.8%. Now, historic average is about three-and-a-half.
So if the Trump reforms go through, especially a big delicious tax cut — huge, beautiful tax cut, we can get the growth rate up to three, three and a half. That puts off the crisis for at least ten years, gives us time to reform the system. And the thing is, if we have a decently growing economy we can once again have the opportunity. You don't have to take any benefits from those who are on the systemare about to go on the system. But for younger people, put in a new system and that's what they should be focusing on, not taking away current benefits or thinking that 1.8% is the thing we have to stick with, but do something for younger people and that would be popular as well. The right thing and the popular thing.