This April 1st is an apropos moment to reflect upon how we fool ourselves about the viability of the second biggest federal budget items in their current form. Of course, I am talking about Social Security, which accounts for 20 percent of current federal spending.

I want to begin by disarming the demagogues. We need Social Security, but it is not viable in its current form. This is, in part, because we have fooled ourselves about the program since its inception. Too many Americans mistakenly believe that there's a lockbox or bank where their Social Security contributions are safely tucked away for their retirement. Politicians of all stripes have abetted this monstrous lie. The truth is Social Security is a plain old payroll tax, in which current workers pay the benefits to current retirees. This has led some to label the program a ponzi scheme. It is not, of course, except for in the promotion of the lockbox lie, which does give it an air of ponzi-like misrepresentation. Ironically, the fact that the program's not a lockbox, but rather one generation looking after another, that makes it a gentle representation of the optimism of our Republic. But, as with many other social programs in the 21st century, it must face the fact that aging baby boomers will make the current plan bankrupt in a generation or so, and we cannot tax our way out of the problem.

Just about 15 percent of what workers would otherwise receive in income is collected each year in Social Security and Medicare taxes. Later, these benefits are scaled by the amount workers pay into the program. Under the current scheme, this makes it just about the worst retirement benefit available. In fact, if treated as a financial investment, Social Security is a really very effective way to destroy wealth. If Social Security were only a retirement plan, everyone (but the workers at the Social Security Administration) would be better off if it were wholly privatized.

Social Security does three things beyond simple retirement plans. Disabled Americans receive support from the tax. While this is a highly abused federal program that compensates many of the wrong people, in concept it is much needed, with a few reforms.

Social Security also makes death payments to families and provides some retirement benefits to workers who would otherwise not plan for retirement. The honest truth is that private enterprise offers ready insurance options for both of these. Failure to have this insurance isn't a problem of free markets, but of the planning and judgment of households.

There are a wide range of options that would little affect the old, and provide the young plenty of time to plan. It is ironic that if tackled soon, few except lobbyists would be discomfited. But the longer we wait, the worse the situation, the lower benefits, the higher the costs and the more people who will slip through the cracks. How terribly foolish of us to delay.