Show Social Security Debate Has Echoes of 1935 Dana Milbank The Washington Post Posh When Franklin Delano Roosevelt returned to Washington on April 9 1935 tanned and rested from froma a week two-week fishing trip he learned that the House of Representatives was in turmoil over his Social Security legislation That night House Speaker Joseph Wellington Byrns and Ways and Means Committee Chairman Robert Doughton warned the president that the plan risked being scuttled by both radical Democrats who favored a vastly larger handout to the aged and Republicans who opposed any government pension plan They told him they needed his help to get the plan through Congress Three days later Roosevelt delivered At a news conference the popular president stepped up public pressure for passage of the entire plan including the controversial payroll tax to pay old-age old benefits This title is the most important thing in this bill bilI he said When you strike at this title you strike at the keystone of the arch of the Social Security program A week later the House easily passed Roosevelt's plan A Washington Post article at the time described window rattling cheers in the chamber and blocs of lawmakers who shouted down one another's amendments as Roosevelt's New Deal floor command command command com com- mand enacted Social Security Roosevelt's struggles in 1935 were in some ways similar to President Bushs Bush's attempt to steer a revised Social Security program through Congress in iii 2005 but their legislative styles are vastly different Like Bushs Bush's party enjoys control of both chambers of Congress though by smaller margins Like Bush confronts a public that favors costlier costlier cost cost- costlier lier alternatives to his plan Like Bush is is engaged in a major public relations effort to sell his plan And like Roosevelt Bush faces a great challenge challenge challenge chal chal- lenge in unifying his own party in support of his pro pro- But Bush trying to replace part of Social Security with individual accounts has a different approach Roosevelt presented Congress with a highly detailed proposal developed by a level Cabinet-level committee See Social Security continued on page 4 I Social Security cont from front and it passed relatively intact Bush has left it to Congress to work out the details providing it only with broad guidelines Also proposal was a compromise that split the difference between a more radical radical radical radi radi- cal plan favored by many in his own party and the generated business-generated opposition in the other party Although many view Roosevelt's legislation legislation legislation legis legis- lation as a triumph for the left Lu a vastly expanded concept of the federal government government government govern govern- ment its it's fair to say that his plan prevented passage of a amore amore amore more radical scheme with broad popular support Bush by contrast has sided with those in his party who have proposed the most reaching far-reaching changes to the program pitting him against GOP moderates and virtually all Democrats Roosevelt sought to cool the passions in his own party whereas Bush seeks to kindle passion in his In 1934 Congress tilted decisively to the left and Roosevelt was more moderate than lots of people in Congress historian Robert Dallek said Bush by contrast is more to the right righton on Social Security than many of his GOP colleagues in the House Bushs Bush's challenge is to build public support for his private accounts Roosevelt had to prevent prevent prevent pre pre- pre pre- vent a more radical Social Security plan from becoming law Emerging from a depression in in which unemployment hit 25 percent 18 million million million mil mil- lion sought public relief and 9 million remained jobless the country was clamoring for retirement security Populist Sen Huey Long D proposed a Share Our Wealth plan to redistribute all private fortunes to Americans in need Another populist Francis Townsend wanted to tax all business transactions transactions transactions to give a month to elderly Americans if they agreed not to work Roosevelt wanted to avoid anything that looked like the handouts for those on the dole in Europe That put him at odds with some of his aides and liberal Democratic Senate leaders leaders leaders lead lead- ers who favored generous relief payments Roosevelt in the summer of 1934 formed a Committee on Economic Security to devise for insurance- insurance legislation a sustaining self-sustaining style program for the unemployed and the aged that would reduce the need for handouts A program developed by a committee of the cabinet would be under his control wrote committee chair and Labor Secretary Frances Perkins It would not be likely to get off into the kind of political discussion and publicity that might breed doubt and delay Their instructions were to develop a largely self-financing self program that would help the thc the J t J u. u disabled and dependent mothers and children but avoid the extravagance of the Long and Townsend plans One hardly realizes nowadays how strong was the sentiment in favor of the Townsend plan Perkins wrote in her 1946 memoir The administration worked for 18 months to build support a sales effort that culminated in a large November 1934 conference in Washington Roosevelt used his pulpit to deflate the populist ideas and lower expectations Organizations promoting fantastic schemes have aroused hopes that cannot be fulfilled Through their activities they have increased the difficulties of getting sound legislation but I hope that in time we may be able to provide security security security rity for the aged He was determined to get his bill through Congress in 1935 particularly because the 1934 midterm elections had given the Democrats lopsided majorities in Congress FOR W worried about the 1936 1946 election told Perkins We W have to have it The Congress cant can't stand the pressure of the Townsend plan unless we have a real old-age old insurance insurance insurance ance system nor can I face the country Progress through Congress was slow taking seven months Townsend appearing before the House Ways and Means eans Committee said his plan attracted the signatures of millions of citizens Having been shown this vision do you think the people people people peo peo- of America will be denied their right to attain it he continued I 1 say to you that they w will willBy ll n not By the time Social Security legislation reached the House floor in in April The Post reported that Democratic leaders were were known to believe supporters of the Townsend month a pension plan could whip up enough sentiment to put through a compromise compromise compro compro- mise unless they were forbidden to offer amendments It was an open secret too that Ways CHays and Means committeemen feared a coalition of recalcitrant Democrats and Republicans would muster enough votes to strike from the bill provisions for a supplemental supplemental supplemental supple supple- mental old-age old pensions system because of the clauses asking pay roll taxes of 6 per percent cent The Townsend Democrats did try to thwart the initiative Rep John McGroarty D- D Calif backing the Townsend scheme charged that Roosevelt's plan amounted to nothing Thirty million of your countrymen country country- men and countrywomen want this bill enacted enacted enacted enact enact- ed McGroarty argued For Gods God's sake think of these old people so near to the heart of God who need your help Committee Chairman Doughton pleaded with fellow Democrats for restraint We cannot cannot cannot can can- not go all the way at one journey he said We are doing more than has ever been done in in any piece of legislation for unfortunate people T i T t. t elan nl n w waC c J u t r HU down to 56 The badly outnumbered Republicans argued that Roosevelt's plan went too far violating violating violating vio vio- vio- vio lating the Constitution hurting industry and instituting socialism You Vou are placing a financial lash upon the backs of the people whose backs are breaking under a load of debts and taxes Rep Thomas Jenkins of Ohio said Much uch of the debate focused on Roosevelt's views His voice is loud and clear I lam am following following fol fol- following fol- fol lowing him The responsibility is is his said Archibald Carmichael D Daniel Alden Reed R compared Roosevelt to a century English king A Pennsylvania Republican accused Roosevelt of an orgy of ruthless spending A radical Democrat decried the passing buck bill that offered only a small amount to the aged The debate lasted from April l 11 l to April 19 and all 50 amendments that were offered were rejected The measure cleared the House to 33 The Post described the Roosevelt allies as jubilant After that victory Roosevelt prodded the Senate in an April 28 radio address While our present and projected expenditures for work relief are wholly within the reasonable limits of our national credit resources it is obvious that we cannot continue to create governmental deficits for that purpose year after year he said That is why our Social Security program is an important part of the com complete lete picture iS i if r T T fir r 1 h hr Finance F ti t. mance Committee members were were more more skeptical of the of-the the populist alternatives than their their- House counterparts Liberals such as as Democratic Senate leader Robert Wagner were disillusioned that Roosevelt's plan was too stingy and favored more redistribution of wealth wrote Wagners Wagner's biographer J. J Joseph Huthmacher Populist Democrats had less of a voice in inthe inthe inthe the Senate and the Townsend legislation was not seriously considered Longs Long's s 's Share Our Wealth program was shouted down in a voice vote Republicans again tried to derail the mea mea- sure Sen Frederick Hale Maine aine condemned Roosevelt for creating socialistic agencies Sen Daniel Hastings Del protested that the legislation would discriminate against the young in favor of the aged and would deceive the young Social Security cleared the Senate 77 to 6 Signing the bill on Au 14 Roosevelt said it would C help 30 million people and called it a corner stone in a structure which is being built but is byno by byno byno no means complete Seventy years later the building and rebuilding rebuilding |