Economics of Aging: Toward a Full Share in Abundance
Total Page:16
File Type:pdf, Size:1020Kb
ECONOMICS OF AGING: TOWARD A FULL SHARE IN ABUNDANCE HEARINGS BEFORE THE SPECIAL COMMITTEE ON AGING UNITED STATES SENATE NINETY-FIRST CONGRESS FIRST SESSION PART 1-SURVEY HEARING WASHINGTON, D.C. APRIL 29-30, 1969 Printed for the use of the Special Committee on Aging U.S. GOVERNMENT PRINTING OFFICE 32-346 WASHINGTON: 1969 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price $1.25 SPECIAL COMMITTEE ON AGING HARRISON A. WILLIAMS, JR., New, Jersey, Chairman ALAN BIBLE, Nevada EVERETT McKINLEY DIRKSEN, Illinois FRANK CHURCH, Idaho WINSTON L. PROUTY, Vermont JENNINGS RANDOLPH, West Virginia HIRAM L. FONG, Hawaii EDMUND S. MUSRIE, Maine JACK MILLER, Iowa FRANK E. MOSS, Utah CLIFFORD P. HANSEN, Wyoming EDWARD M. KENNEDY, Massachusetts GEORGE MURPHY, California RALPH YARBOROUGH, Texas PAUL J. FANNIN, Arizona STEPHEN M. YOUNG, Ohio EDWARD J. GURNEY, Florida WALTER F. MONDALE, Minnesota WILLIAM B. SAXBE, Ohio VANCE HARTKE, Indiana WILLIAM E. ORIOL, Staff Director JOHN GuY MILLER, Minority Staff Director DORoTHY MCCAMMAN, Consultant, "Economics of Aging: Toward a Full Share in Abundance" Part 1. Survey Hearing, Washington. D.C.. April 29-30, 1969 Part 2. Consumer Aspects, Ann Arbor, Mich., June 8, 1969 Part 3. Health Aspects, Washington, D.C., July 17-18, 1969 Part 4. Homeownership Aspects, Washington, D.C., July 31-Aug. 1, 1969 Part 5. Central Urban Area, Paramus, N.J., July 14, 1969 Part 6. Retirement Community, Cape May, N.J., July 15, 1969 Part 7. International Perspectives, Washington, D.C., July 25, 1969 Part 8. Health Aspects, New York City, October 15, 1969 (Additional hearings anticipated but not scheduled at time of this printing) (II) CONTENTS Page Opening statement by Senator Harrison A. Williams, chairman -1 CHRONOLOGICAL LIST OF WITNESSES TUESDAY, APRIL 29, 1969 Summary by task force members: Kreps, Juanita M., professor of economics, Duke University- 4 Sheppard, Harold L., staff social scientist, W. E. Upjohn Institute for Employment Research- 5 Schulz, James H., associate professor of economics, University of New Hampshire - 7 Brewster, Agnes W., consultant on medical economics- 9 Ball, Robert M., Commissioner of Social Security; accompanied by Mrs. Lenore E. Bixby, director, division of retirement and survivor studies; and Mrs. Dorothy P. Rice, chief, health research branch--12 Hutton, William R., executive director, National Council of Senior Citi- zens; Theodor Schuchat, retirement editor, North American Newspaper Alliance; Charles C. Fichtner, member of legislative council, American Association of Retired Persons and National Retired Teachers Associa- tion; Edwin S. Shelley, president, National Council on the Aging; William Greenough, chairman, Teachers Insurance and Annuity Association of. America, College Retirement Equities Fund; and Othie G. Burk, vice president, National Association of Retired Civil Employees -40 Schuchat, Mr -43 Fichtner, Mr -46 Shelley, Mr -52 Greenough, Mr -56 Burk, Mr- 62 Roundtable discussion - 65 Summary statements: Dr. Schulz ----------------------------- 86 Mr. Hutton - 87 Mr. Fichtner -88 Mr. Schuchat ------------- 89 Mrs. Mathiasen -90 Mr. Burk -91 Dr. Sheppard ------------------- 93 Dr. Kreps -94 WEDNESDAY, APRIL 30, 1969 Schottland, Charles I., dean, Florence Heller Graduate School for Ad- 97 vanced Studies in Social Welfare, Brandeis University _ Pechman, Joseph A., director of economic studies, Brookings Institution; accompanied by Henry Aaron, senior fellow, Brookings Institution; and Michael Taussig, assistant professor of economics, Rutgers University_ 112 (HI) IV ROUNDTABLE BY FEDERAL PERSONNEL Brotman, Herman B., Administration on Aging; Louis Ravin, Depart- ment of Labor; John R. Stark, U.S. Joint Economic Committee; Lenore Epstein Bixby, Mollie Orshansky, and Dorothy P. Rice, Social Page Security Administration -- 123 Mr. Brotman - - -124 Mr. Ravin - -128 Mr. Stark - -131 Mrs. Bixby ------------------------------- 133 Miss Orshansky - -136 Mrs. Rice - -140 Panel discussion -- 142 APPENDIXES Appendix 1. Economics of Aging: Toward A Full Share in Abundance, Facts and Findings -- 149 Appendix 2. Senator Williams' letter of April 24, and letter of reply by Secretary Robert H. Finch of April 25 - -229 Appendix 3. Additional Material from Witnesses: Item 1. Ball, Robert M., Social Security Administration, Department of Health, Education, and Welfare 231 Exhibit A. Responses to questions from the chairman.------- 231 Exhibit B. Responses from Commissioner Ball to questions sub- mitted by Senator Miller 237 Exhibit C. Responses from Commissioner Ball to questions by Senator Proutv as submitted by Senator Miller - - 238 Item 2. Herman B. Brotman, chief, Research and Statistics, Division of Program and Legislative Analysis, Social and Rehabilitation Service, Administration on Aging, Department of Health, Educa- tion, and Welfare-- 243 Item 3. Dr. Joseph A. Pechman, Director of Economic Studies, the Brookings Institution, Washington, D.C-250 Exhibit A. Responses from Dr. Pechman to questions from the chairman - 250 Exhibit B. Brookings Research Report 94 -253 Item 4. Lenore E. Bixby, Director, Division of Retirement and Sur- vivor Studies, Office of Research and Statistics, Social Security Administration -264 Item 5. Mollie Orshansky, Division of Economic and Long-Range Studies, Office of Research and Statistics, Social Security Admin- istration -284 Item 6. Mrs. Dorothy P. Rice, Chief, Health Insurance Branch, Divi- sion of Health Insurance Studies, Office of Research and Statistics, Social Security Administration -292 Appendix 4. Letters from Individuals and Organizations: Bechill, William D., associate professor of social work and chairman, Social Policy Sequence, School of Social Work, University of Mary- land----------------------------- 297 Folsom, Marion B., Toronto, Ontario, May 28, 1969 -299 Eckstein, Otto, Department of Economics, Harvard University, Cam- bridge, Mass., May 2, 1969 - 305 Gallaway, Lowell E., professor of economics, Ohio University -306 National Association of Manufacturers, statement -310 Jackson, Jacquelyne J., assistant professor of medical sociology, Duke University Medical Center, Durham, N.C., June 5, 1969 -_ 313 Krislov, Joseph, professor, University of Kentucky, Lexington, Ky., May 20, 1969 ------- 315 McClung, Nelson, Deputy Executive Director, President's Commission on Income Maintenance Programs, May 27, 1969 - 316 Seidman, Bert, director, Department of Social Insurance, AFL-CIO, Washington, D.C., May 26, 1969 -_ 317 V Appendix 4. Letters from Individuals and Organizations-Continued Murray, Roger F., Teachers Insurance and Annuity Association of America, College Retirement Equities Fund, New York, May 29, Page 1969 320 Oates, James F., Jr., the Equitable Life Assurance Society of the United States, New York, May 29, 1969 -321 Ottman, Richard F., Acting Assistant Director, Office of Economic Opportunity, Executive Office of the President, May 21, 1969--- 322 Reuther, Walter P., president, International Union, United Auto- mobile, Aerospace & Agriculture Implement Workers of America, UAW, statement -323 Rimlinger, Gaston V., professor of economics, chairman, Rice Uni- versity, Houston, Tex., May 28, 1969 -329 Tilove, Robert, Martin E. Segal Co., New York, June 2, 1969 -330 Young, Whitney M., Jr., executive director, National Urban League, Inc., New York, May 23, 1969 -330 Lindsay, Inabel B., DSW member, part-time professional and execu- tive corps, HEW, chairman, committee on individual and family services, National Urban League, statement -331 ECONOMICS OF AGING: TOWARD A FULL SHARE IN ABUNDANCE TUESDAY, APRIL 29, 1969 U.S. SENATE, SPECIAL COMMIrrEE ON AGING, Washington, D.C. The committee met at 10 a.m., pursuant to call, in room G308 (audi- torium), New Senate Office Building, Senator Harrison A. Williams, Jr. (chairman) presiding. Present: Senators Williams, Moss, Hartke, Miller, and Saxbe. Committee staff members present: William IE.Oriol, staff director; John Guy Miller, minority staff director; Dorothy McCamman, con- sultant on economics of aging~; Patricia Slinkard, chief clerk. OPENING STATEMENT BY SENATOR HARRISON A. WILLIAMS, CHAIRMAN Senator WILLIAMS The committee will come to order. We will begin the hearings on Economics of. Aging: Toward a Full Share in Abundance. That title was chosen to make several vital points. One is that the committee is not dealing solely with one or two issues, such as adequacy of social security benefits, or the likely levels of private pension pay- ments a decade hence. We are keenly concerned, of course, about such matters. But a more fundamental purpose is to establish an overview of the many economic pressures that affect aged and aging Americans. The committee will focus its attention on the personal economics of individuals who-in the final decades of their lifetimes-discover that fixed incomes and lifetime savings are either totally inadequate or barely enough for marginal life. We will also try to look ahead to the likely economic situation that today's workers-those who now think of retirement as far in the future-will face if present trends continue. Give some thought for a moment, if you will, to that last state- ment. The point is that problems related to retirement income should not be regarded as solely the concern of those now retired. Today's middle-aged head of household-struggling to pay off his mortgage, provide a good education for his youngsters, perhaps con- tributing to the support of a parent, keeping up with the Joneses in our