Campaign: Bush Exposed -- Social Security Privatization is on the Way
WASHINGTON, Oct. 17 /U.S. Newswire/ -- The
Kerry-Edwards campaign today released the following: "George W. Bush
Exposed: Social Security Privatization is on the Way":
Though George W. Bush does not often admit
to voters that his Social Security plan is a privatization scheme, a new
report shows he apparently does tell the Republican National Committee's
major donors. Maybe that's because they'll be the ones to benefit from
privatization while seniors will see their benefits cut and the plan
will add $2 trillion to the deficit.
BUSH'S PRIVATIZATION SECRET:
DON'T SAY IT: "Privatization is a False and
Misleading Word." Bush aide Steve Schmidt instructed, "'Privatization'
is a false and misleading word insofar as it is being used by Democrats
to describe Republican positions on Social Security. It is very
important that we not allow reporters to shill for Democrat demagoguery
by inaccurately characterizing 'personal accounts' and 'privatization'
as one in the same." (Slate, 9/6/02)
YET BUSH TELLS BIG DONORS AT THE RNC:
Privatizing is On the Way.
"'I'm going to come out strong after my
swearing in.' Bush said, 'with fundamental tax reform, tort reform,
privatizing of Social Security.' The victories he expects in November,
he said, will give us 'two years, at least, until the next midterm. We
have to move quickly, because after that I'll be quacking like a duck.'"
(New York Times, 10/17/04)
BUSH'S PRIVATIZATION SCHEME:
George Bush's Economic Report Of The
President 2004 says that his Social Security plan would drain $2
trillion from Social Security over ten years, increasing the deficit.
According to George Bush's Economic Report of the President 2004,
"personal retirement accounts widen the deficit by design." In total,
the Social Security plan presented in the Economic Report of the
President (Plan No. 2 from the Presidents Commission to Strengthen
Social Security) would increase the deficit by $2 trillion over ten
This plan proposes individual accounts that average about 2
percent of payroll (technically, 4 percent of payroll up to a maximum
$1,000 annual contribution). (Council of Economic Advisers, Economic
Report of the President 2004, pp. 143 and Social Security
Administration, Office of the Actuary, "Estimates of Financial Effects
for Three Models Developed by the President's Commission to Strengthen
Social Security," January 31, 2002)
CBO estimates that Bush's plan will force
benefit cuts (even when you include the value of the individual
accounts) that grow from 23 percent to 45 percent. According to CBO, the
President's plan "would reduce expected retirement benefits relative to
scheduled benefits, even when the benefits paid from IAs (individual
accounts) under CSSS Plan 2 are included....For example, benefits for
the 1980s birth cohort would be 30 percent lower, and benefits for the
2000s cohort would be 45 percent lower." (CBO, "Long-term Analysis of
Plan 2 of the President's Commission to Strengthen Social Security,"
7/21/2004, page 15 and Table 2)
A $940 Billion Giveaway to Financial
Institutions: George Bush's Social Security plan will provide a $940
billion giveaway to financial institutions. "Creating individual
accounts in the social security system would lead to a massive increase
in payments of financial fees to private financial management
companies." (Austan Goolsbee, University of Chicago, 9/04