White House: Personal Accounts Not a Fix (AP)

[wildflower]

White House: Personal Accounts Not a Fix

LEIGH STROPE

Associated Press

WASHINGTON - An overhaul of Social Security to allow personal investment accounts won't fix the looming financial shortfall by itself, the White House said Wednesday.

"It will take more to solve the problem than just personal accounts," White House spokesman Scott McClellan said.

Social Security is facing an estimated $3.7 trillion shortfall over 75 years to pay all promised benefits, according to the system's trustees.

Remaking the program to let younger workers divert a portion of their payroll taxes into personal accounts doesn't help plug that deficit. But McClellan did not say what other changes President Bush would propose to address the future funding problem.

"We're pursuing a comprehensive solution to strengthen Social Security that would include personal savings accounts as part of the overall solution," McClellan said.

more (including quotes from Bush and Democrats) at

http://www.mercurynews.com/mld/mercurynews/business/financial_markets/10425027.htm?1c

[hatrack]

1. So if that's the case, why are they pimping personal accounts?

Oh, I forgot, it's just one specific tactic for the destruction of Social Security. Silly me! :eyes:

[wildflower]

5. I dunno, maybe this Bush quote from the article explains it...

"The great desire for people in Congress is for me to negotiate with myself," he said. "And therefore, I will continue to articulate principles that I think are important and reach out to members of both parties to fashion a plan that solves the problem."

:crazy:

[demgrrrll]

2. What a load of crap. Scotty is the front man for the Legion of Doom.

Aeeeeiiii the sky is falling we gotta take all of your money for your own good and protection. Can you imagine how these guys sit around at night and laugh their asses off at how easy it is to rob everyone blind? Somebody needs to step up to the plate and put the breaks on this train, the chimp sure won't.

[NV Whino]

3. Note to WH

It ain't broke. Stop trying to fix it.

[MisterP]

4. The great desire for people in Congress is for me to negotiate with myself

what?

[asjr]

6. It is simply all about him.

[MidwestTransplant]

7. It's not a fix, it's a problem. More fixing will be necessary if this

is allowed to happen.

[enough]

8. I hope everybody has seen

Josh Marshall's great essay today about the social security scam.

I'm not Josh's biggest fan (sometimes he seems to get caught up in glitzy minutiae). But his essay on the SS scam -- and what the Democrats should do about it -- is classic.

http://www.talkingpointsmemo.com/archives/week_2004_12_12.php#004236

snip>

The Social Security "crisis" is manufactured; there is no crisis. To the extent there are long-term financing problems, the president's plan will gravely worsen them. The problem we face isn't over Social Security, which continues to run up huge surpluses (just as it was intended to under the early-80s reform), but that our non-Social Security budget continues to run massive structural deficits. Or rather, it has returned to running massive structural deficits after getting into the black in the late 1990s through the combined exertions of a Democratic president and a Republican congress. Social Security isn't the problem, but rather George W. Bush's reckless fiscal policy.

In any case, as I say, the whole thing is lies. This isn't about the program's problems but about its success. That's why the president and his allies want to phase it out. It's not about financing but about ideology.

snip>

The worst thing that can happen for Democrats is that a few of their members of congress get played for fools by signing on to President Bush's plan in the hopes that they can secure some small improvements in the legislation or reflected glory for themselves -- slightly less money carved out of Social Security, bumping up the payroll tax cap, etc. Whatever miniscule benefits could be achieved in such a fashion would be greatly outweighed by the way that it would lessen the chances for fixing the damage after the next election.

The question will be how to enforce discipline at the margins. And here Democrats should take a page from the Republican playbook in 1994 (on health care) and 1998 (on impeachment).

snip>

much more

[Voltaire99]

13. Ralph Nader made this case ages ago. And he's right. (n/t)

[texpatriot2004]

9. Of course they won't because there is nothing to fix!

Dad-gummit I wish he would quit creating a crisis where there is none. He's like the man who cried crisis for petes-sake!

IF IT AIN'T BROKE DON'T FIX IT!

[liberal N proud]

10. Why don't they just do what they are doing with the deficit?

Leave it for the next generation to worry about.
There has to be a reason they want to tap into SS NOW!

What is the scam behind the Privatization? Who will gain from this little charade?
I am sure there is a big ass bush donor back there somewhere just waiting for the chips to fall in his lap.

[Lone_Star_Dem]

11. Investment firms will no doubt gain.

They will be needed to bridge the gap from the common person to wall street.

[fshrink]

12. An excellent thing about this mis-administration is

that by reversing whatever they say, you wind up with a pretty good approximation of what really is. Try it, you'll see, it works every time. This, by the way, used to be a proprietary traits of stalinists regimes. Go figure.

[high density]

14. Why is the AP publishing this propaganda BS??

This is so sickening.