In 1994 Social Security officials began work on a project to "re-engineer" the process for giving disability claimants hearings. High-priced consultants produced reports recommending a dramatic re-organization. The reaction in the field was that the plan was crazy. I can recall going to a conference of the National Organization of Social Security Claimants Representatives (NOSSCR) and hearing a high level Social Security official describe the re-engineering plan. She took questions. I asked her what Social Security was going to do if the re-engineering plan failed. She replied most emphatically that re-engineering would work "because it has to work." She said that Social Security "had no choice."
You can see the obvious problem in this person's thinking. Ideas do not work because we need for them to work. They succeed or fail based upon their merits rather than upon our perceived need for them to work. Once you say that you have no choice, you close off alternatives and are liable to do something foolish. Thinking this way, a man who cannot make enough money to support his family might decide that his only choice is to buy lottery tickets.
Re-engineering was tried out on a limited basis. It failed and was abandoned before it could do much damage. Tens of millions of dollars were squandered on consultants.
Unfortunately, the notion that Social Security could not possibly get its work done without some productivity breakthrough did not go away. The next effort at a "Great Leap Forward", to use the term that Chairman Mao employed in China to describe something vastly larger but motivated by the same belief that there was no choice but to try a "Hail Mary" pass (to mix my metaphors to a cosmic extent), was called Hearing Process Improvement (HPI). This was another effort at a re-organization of Social Security's structure to give hearings to disability claimants. Again, we were told that there was no choice, that this had to be done to meet future needs. This time, Social Security did not let the dismal results of HPI's trials slow them down. They plowed ahead with nationwide implementation but they made sure to do it at the end of 2000 as the Clinton Administration was leaving office. With only an acting Commissioner of Social Security for many months into the Bush Administration, there was no one to pull the plug on HPI as hearing backlogs soared to horrendous, unimaginable levels. HPI has to rank as the most dramatic mistake in Social Security history.
Social Security never recovered from the HPI debacle during the Bush Administration, mostly because the agency lacked operating funds but also because the new Social Security Commissioner, Jo Anne Barnhart, was able to distract everyone with her own plan to end the agency's backlogs. This plan involved electronic files and something else which she really did not want to describe, other than to tell us that it would be wonderful. Again, Barnhart told us that there was no alternative to her plan, whatever it was. The electronic files were implemented at enormous expense. They have still not led to any dramatic improvement in productivity. The rest of Barnhart's plan, which she called Disability Service Improvement (DSI), just got delayed further and further. She kept the details a huge secret until near the end of the Bush Administration. Once the details were released, it was clear why she had kept her plan a secret. It was nothing more than another ill-conceived reorganization plan. Like HPI, DSI's implementation was delayed until Barnhart was nearly out the door. Fortunately, it was not rushed into nationwide implementation. DSI was another failure. The current Commissioner, Michael Astrue, learned that not long after taking office and began to stop it. I am not sure that DSI has been fully wound down even now, some three years later.
The moral to this long story is that we should be extremely wary of anyone with a plan for Social Security who tells us that there is no alternative to his or her plan.