Bush stumps for Social Security plan (Again)

http://www.newsday.com/news/nationworld/nation/ny-usbush0204,0,2826385.story?coll=ny-nation-big-pix

February 4, 2005

FARGO, N.D. -- President George W. Bush turned Social Security salesman-in-chief Thursday, launching a red-state road trip to pressure a nervous Congress to support personal retirement accounts for younger workers.

But almost to a person, the Democrats most squarely in Bush's sights Thursday weren't buying. Some Republicans weren't so sure either.

A day after unveiling his ideas for remaking the 70-year-old retirement insurance system, Bush sought to reassure wary seniors they had "nothing to worry about" in terms of lost benefits, while offering no details of how much younger workers stand to lose in guaranteed payouts.

He noted that Democrats had grumbled when he said in Wednesday's State of the Union address that doing nothing to fix Social Security would force higher taxes, benefit cuts or massive borrowing.

"Some of them didn't see the problem," said Bush, who touches down in five states in two days. "I expect people in Congress, when they see a problem, to then come up with solutions."

Bush carried all five states in last year's presidential campaign, and he hoped to wield that electoral cudgel to convince the seven Democratic senators elected in those states to sign on to his plan.

Back in Washington, however, Democrats showed fresh signs of standing united against Bush's plan. Senate Minority Leader Harry Reid (D-Nev.) Thursday produced a letter to Bush bearing the signatures of all but one of the 45 Senate Democrats, condemning private accounts as unaffordable because of the short-term debt it would heap upon an already overburdened federal fiscal structure.

Shifting such massive financial obligations to future generations is "immoral, unacceptable and unsustainable," the letter said. Democrats say such borrowing -- needed to cover money diverted to private accounts -- would require $2 trillion for 10 years, far more than the White House estimate of $754 billion over six years.

Democrats released the letter as a memorial to President Franklin D. Roosevelt, who created Social Security. "We are here by FDR's statue because we believe that Social Security is the greatest government program of the 20th Century, and that we ought to keep it, not gut it," said Sen. Charles Schumer (D-N.Y.).

The Democratic opposition is significant because Bush would need at least five Democrats to get a plan through the Senate, due to a rule that requires 60 votes to advance legislation.

Bush also was having problems on his own side of the aisle from House Republicans who have to face re-election next year -- so much so that even some supporters of the plan have expressed doubts Bush can accompli... this year.

Two key Republicans raised questions over whether Bush's plans could win congressional support. Senate Finance Chairman Charles Grassley (R-Iowa), who backs Bush's ideas, said he would consider supporting a Social Security bill without the private accounts if that's all that could pass. Grassley joins Rep. Bill Thomas (R-Calif.), chairman of the House Ways and Means Committee, who wants to discuss ways to modify Bush's plan to gain Democratic votes.

Still, Bush's call for action and the Democratic opposition mark the early battle lines over one of the most popular federal programs -- one that Republicans view as a flawed and outdated big-government relic and Democrats hold dear as an enduring legacy of the nation's New Deal safety net.

Bush wants to allow workers under 55 to divert two-thirds of their Social Security taxes into private accounts to be invested in stocks and bonds starting in 2009. Supporters argue those accounts would likely outperform current Social Security gains, more than replacing any guaranteed benefits for those who opt for the personal accounts.

Bush has promised no benefit cuts for those over 55 and mechanisms to ease the risks of major losses in private accounts as workers get closer to retirement. Democrats charge Bush's program could reduce guaranteed benefits for younger Americans by 40 percent and accuse him of overstating the Social Security problem.

At his first stop here in Fargo, Bush used a loose and occasionally joking manner to "interview" selected local residents about why they support his plan.

"People try to scare you about it. 'Well, if old George W. has his way you're not going to get a dime,'" Bush said. "The truth of the matter is you're going to get your checks if you're retired or near retirement."

The lone Democratic holdout on signing the letter was Sen. Ben Nelson of Nebraska, where Bush will visit Friday. A Nelson spokesman said the senator had promised to withhold comment until seeing Bush's full plan.

But the personal touch didn't seem to budge Sen. Kent Conrad (D-N.D.), who Bush invited to fly to Fargo on Air Force One. Bush spent the flight talking to him about everything from rural health to baseball.

"He's saying we've got to take more money out of Social Security to start private accounts and borrow the money," Conrad said. "I just think it's very unwise."

Ken Fireman of the Washington Bureau contributed to this story.

Copyright Š 2005, Newsday, Inc.
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Bush Challenged On His 1978 SS Comments
FYI...According to the NY Times, President Bush was challenged today about his comments (posted here this morning) in 1978 that Social Security would be bankrupted by 1988 unless the system was privatized. From the NY Times:

"Mr. Rangel also said he quoted to the president from a 1978 magazine article in which Mr. Bush, then running for Congress, was warning of an imminent collapse of Social Security unless it was privatized. 'And he said, 'I lost,' ' said Mr. Rangel, referring to Mr. Bush's defeat for Congress that year. 'And I said the Lord works in mysterious ways.'"

This is but a small shred of proof that blogging, researching and political activism can filter up and challenge a sitting President.

posted by David Sirota @ 11:38 PM
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Update 3: House Republicans Skeptical on Soc. Sec. Forbes
Bush barnstorms for Social Security accounts MarketWatch
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NOT TO BE USED FOR IDENTIFICATION!! http://www.apfn.org/apfn/ssn.htm

Social Security card: "NOT TO BE USED FOR IDENTIFICATION —posted by Eric, Fri Feb 4 00:27