FDR created social security–and Ronald Reagan saved it…

Hard to remember but when Social Security was supposedly facing a financial bind back in the 1980’s, Reagan made a deal with Tip O’Neill (then-Speaker of the House in the days when Democrats still controlled Congress): no benefit cuts and a hike in taxes.

True, it was a hike in the payroll tax, which meant workers ended up shouldering a big part of the burden. But, on the other hand, the hike happened under the paragon of Republican conservatism. Obviously, the political environment is different–Republicans now run the government whereas Reagan had to make deals with Democrats. But, the point is: with no upheaval in the basic principles of the system (i.e., no one handed over billions of dollars to Wall Street for the so-called private accounts), the funding for social security was increased and its continued health guaranteed for many years.