Gary Johnson on Social Security

Summary

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.

2012 Presidential Campaign Website Statements

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