Tuesday, February 01, 2005

Market this

Apparently the republican marketing machine is so good it can go back in time.

Today, Social Security is strong. But by 2013, payroll taxes will no longer be sufficient to cover monthly payments. And by 2032, the trust fund will be exhausted, and Social Security will be unable to pay out the full benefits older Americans have been promised.
The best way to keep Social Security a rock-solid guarantee is not to make drastic cuts in benefits; not to raise payroll tax rates; and not to drain resources from Social Security in the name of saving it.
Specifically, I propose that we commit 60 percent of the budget surplus for the next 15 years to Social Security, investing a small portion in the private sector just as any private or state government pension would do. This will earn a higher return and keep Social Security sound for 55 years.

William Jefferson Clinton, January 19, 1999.

Before you comment, I know we were in surplus in 1999 but that proves my point. Surpluses and recessions come and go and any increase in government revenues would be spent no matter who is president or controls congress.

1 Comments:

Blogger Outlier said...

There's a big difference between this :

"Investing a small portion in the private sector just as any private or state government pension would do"and individual private accounts:

President Bush's advisers have settled on a proposal for structuring the personal accounts they hope to create in Social Security...

Under a plan recommended to Bush, the private accounts would resemble many company-sponsored retirement plans, with just a handful of investment options"
The American Academy of Actuaries have said that privatization is strong solution to shoring up the trust fund, but individual accounts do nothing.

"Whether carved out from the existing benefit structure, or added on top of it, individual accounts wouldn't address the long-range deficit in the Social Security system because they wouldn't necessarily reduce benefits, or significantly increase revenue or the rate of return on trust funds"There's a HUGE difference between what Clinton is talking about here and what is being discussed as a reform proposal. As I understand it, fund privatization can correct shortfalls in Social Security alone, private accounts cannot.

"Apparently the republican marketing machine is so good it can go back in time"Whether you agree or disagree about the effect of individual private accounts, if you're going to quote someone to support your argument, find one where they'e talking about the same thing.

10:07 AM  

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