Wednesday, February 02, 2005

It's like Buying a New Car

From CNN's Transcript of the State of the Union:

"All these ideas are on the table. I know that none of these reforms would be easy. But we have to move ahead with courage and honesty, because our children's retirement security is more important than partisan politics. I will work with members of Congress to find the most effective combination of reforms. I will listen to anyone who has a good idea to offer. We must, however, be guided by some basic principles. We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee that there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future."

This is what I've wanted all along. I hope it's true.

When buying a new car, the general rule is to negotiate the new car price and finance terms before you even begin talking about the trade-in.

Private accounts are the trade-in. Congress needs to get the corrective action, whether it be reduced benefits, a payroll tax increase, or even means-testing in place BEFORE even talking about private accounts. If the President means what he says, he'll accept the corrective plan independent of private accounts, otherwise, it's just lip service.


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