Governor Johnson has stated that reforming social security is a necessity. One of the items that Governor proposes is to change the method of calculating the "escalator," or the cost of living increase from being based on wage growth to being based on inflation. He states that this will more properly reflect the realities of a dollar with a declining purchasing power.
While he hasn't put forth a specific plan, Governor Johnson has stated that he supports a partial privatization of social security where people are allowed to self-direct a portion or all of the money they pay into the system. He states that even today, he would opt to self-direct 100% of his funds in the system. Governor Johnson has also supported means testing to help keep the system solvent. This would reduce payments to a recepient if that person is deemed not to need them.
Republican Liberty Caucus Interview
In January of 2010, Governor Johnson was interviewed by the Republican Liberty Caucus and asked about social security reform. He states that a private system would solve the financial problems, but does not specifically support that program.
L: What about Social Security reform?
J: Social Security is flawed. When it was brought into existence the life expectancy was 55. Benefits started at 65. Now, life expectancy is 75, and benefits start at about the same age. It’s a Ponzi scheme. A combination of benefit reduction and/or privatization are necessary. At least part of Social Security should include private accounts that are counted in your estate.
L: What do you think of making Social Security voluntary and converting it into a defined contribution plan?
J: That would make it viable.
Reform is Necessary
In an unspecified interview, Governor Johnson states that social security reform is necessary. He supports allowing people to self-direct a portion of the their own funds, increasing the retirement age, and means testing.
Well, social security has to be reformed. I think that at a minimum the retirement age has to be raised. Talking about privatizing social security or being allowed to self direct a portion of your benefits ... I think that needs to be part of the mix. I would have loved to have had that when I was a 17 year old paying into the social security system. By the way, today I would still opt for me to be able to self-direct 100% of my social security funds.
There also needs to be some means testing going forward ... What gets paid in, what gets paid out ... If we don't reform all these areas, I think that we are gonna be left with nothing. We have a chance here to take a little bit of medicine and perhaps live on ... and i'm talking about the United States of America ... but if we don't address these problems, we might all be left with nothing. And "nothing" will be a dollar that doesn't buy anything tommorrow.
2012 Presidential Campaign Website Statements
SPENDING AND THE DEFICIT
Government spends too much because it does too much. Unchecked deficits are the single greatest threat to our national security. Unless we take significant steps soon, our federal debt will equal the entire economic production of the United States.
We should start by reassessing the role of the federal government, and always asking the question: Should the government be doing this in the first place?
We must act now to:
1 BALANCE THE BUDGET
THE U.S. IS BORROWING OR PRINTING MORE than 40 cents of every dollar the government spends today. The math is simple: Federal spending must be cut not by millions or billions, but by trillions. And it must be done today.
It's time to:
End excessive spending, bloated stimulus programs, unnecessary farm subsidies, and earmarks.
Reassess the role of the federal government and identify responsibilities that can be met more efficiently by the private sector.
Recognize that you can't have limited government at home, but big government abroad.
2 ENACT RESPONSIBLE ENTITLEMENT REFORM
MOST PEOPLE IN WASHINGTON SEEM TO THINK that we can control spending and balance the budget without reforming Medicare, Medicaid and Social Security. This is lunacy.
Identify and implement common-sense cost savings to place Medicare on a path toward long-term solvency.
Block grant Medicare and Medicaid funds to the states, allowing them to innovate, find efficiencies and provide better service at lower cost.
Repeal ObamaCare, as well as the failed Medicare prescription drug benefit.
Fix Social Security by changing the escalator from being based on wage growth to inflation. It's time for Social Security to reflect today's realities without breaking trust with retirees.
3 AUDIT THE FEDERAL RESERVE
THE FEDERAL RESERVE SHOULD BE TRANSPARENT and its actions held to the same level of scrutiny as any other federal department.
The American people deserve to know the extent to which the Fed has purchased private assets at home and abroad.
Many Americans have become interested in the Federal Reserve in recent years. America's representatives in Washington, D.C. need to also become a lot more interested in how this government institution affects the American economy.
The role and the activities of the Federal Reserve are long overdue for examination, reassessment, and ultimately, thoughtful reform. Can the Federal Reserve pursue both stable prices and full employment, or does its currency manipulation cause malinvestment, inflation, and prolonged unemployment?
Conduct an audit to provide true transparency of the Federal Reserve's lending practices.
Establish clear Congressional oversight.
Get the Federal Reserve out of the business of printing money and buying debt through quantitative easing.
