We need a dramatic rethinking of Social Security. Americans -- whose savings rates had fallen to zero before the current financial crisis, and many of whom are plagued by personal debt – need to save more for retirement and for other lifetime needs. We need a system of mandatory personal savings accounts, which make individuals much more responsible for their own financial security, even though Social Security would be retained to provide some benefits. Personal savings accounts either could wholly or partially replace the current system, putting responsibility for retirement security where it should be, on each of us individually.

True, some people would make out better than others under this plan, because some people are better savers and investors than others. But if they do their homework and invest prudently, they ought to be able to retire in an acceptable fashion.