Home > Social Security not broke- yet: Bush’s Plan will cost $2 Trillion while (...)

Social Security not broke- yet: Bush’s Plan will cost $2 Trillion while reducing benefits

by Open-Publishing - Saturday 8 January 2005
4 comments

Healthcare USA

Senator Johnson says Bush’s Social Security plan is a crap shoot
1/6/2005 4:39:17 PM
Cindy Davis

The outline of the President’s plan to reform Social Security is already causing a South Dakota senator some concern.

Democratic Senator Tim Johnson says he sees several problems with changing the formula for Social Security benefits.

He says the President’s outline includes borrowing from foreign nations to make up for a $2 trillion dollar deficit.

He also claims it would lower benefits for retirees and force younger people to pay more taxes to make up for the debt. “I think retirees ought to know to the dime what it is they’re going to get when they retire. I agree with AARP, that when people plan their retirement, it shouldn’t depend on their good luck, whether the stock market is up or down just before their retirement.”

A major argument is over when the system fails. Johnson says there is no immediate threat, it’s solvent through 2052. The Social Security Administration claims revenues will begin to fall in 2018, and dry up in 2042.

http://www.kotatv.com/localnews/story.asp?ID=20339

Forum posts

  • These immoral thieves will stop at nothing to ruin everything good about our country. There is even more money to steal here then in their illegal wars.

    This is written by Molly Ivins at alternet

    http://www.alternet.org/story/20916/

    "The Bushies are about to launch a $50 million to $100 million dollar propaganda campaign to convince us the Social Security system is in crisis. Actually, it’s not. It’s quite robust and has astonishingly low administrative costs, less than 1 percent.

    According to President Bush’s own Commission to "Strengthen Social Security," the administrative costs of keeping track of private accounts will be 10 to 30 times the cost of administering the current system.

    The Social Security System is in no danger whatsoever of going broke, or even of having to pay out less than full compensation for at least 50 years."

    • You got that right Molly, spot on.

      Here in Australia we had a similar situation approximately 10 years or so ago.
      Our Government proposed to introduce a Superanuation Scheme wherein EVERY Australian would from the day they started work, invest 3% of their income in a Government Super scheme.

      On paper such a scheme looks very good, and in the end, workers pay for their retirement.
      However, the greedy corporate types and their lobbiers who lobbied on their behalf, would not allow this bill to pass.

      In the end, it was GUTTED and revised, instituting clauses to allow PRIVATE MANAGEMENT OF SUCH FUNDS by PRIVATE ENTITIES.

      This resulted in massive profits for Superanuation and Insurance funds, whose share holders began walking around with huge smiles upon their faces, worse, many employment companies began their very own Superanuation Funds of which THEY WERE IN CHARGE OF, making a tidy profit from fees they charged their employees to manage their funds.

      To top it all off, I’m sure the World has read of the headlines wherein many Australian companies bit the dust and it surfaced that the companies HAD SPENT THEIR EMPLOYEES SUPER INVESTMENTS AS WELL.

      So at the end of the day, something that was really good, and would have benefited the whole community ensuring ample funds would be available in their retirement, has now been neutralised simply on the basis of GREED from the Corporate types.

      And daily threats being made by our Government, on how workers cannot expect the Government to look after them in their retirement.
      Never mind the fact, that in 1953, our Taxes were increased to introduce a Pension scheme wherein EVERY AUSTRALIAN would then be entitled to a Pension upon reaching the ages of 65.

      It would appear, that money collected over the years has simply disappeared into thin air.

      I would think that human beings would have the intelligence to learn from other people’s mistakes, and not make the same mistake themselves, sadly, I live in a fool’s world, and no such thing ever happens.

      It would appear Americans are going to make the same mistake as we did, believing their Government and then be shafted for that belief, ah well, guess the old saying;
      YOU DESERVE THE GOVERNMENT YOU GET. Still has validity everywhere.

  • To all Republicans, Democrats and other party lines.

    This is not about sides, its about what is right for the American people.

    Are you going to stand by and let Bush continue to lie about Social Security being broke?

    Are you going to stand spineless and not stand up in either party and say no to Bush. People say Kerry was spineless, what do you think you are.

    This is wrong, anyone that do math should be able to see the writing and also read the daily market reports.

    Those who bank accounts know that the banks charge service fees on accounts, and also you must have a certain amount before they stop taking out service charge.

    This concerns all, for the republicans not see the writing on the wall that this is not a workable plan and the fact he using 2 Trilmillon dollars makes no sense at all. Please tell me why would spend that kind of money to change a plan that is working? What is Bush thinking, what is the real reason it sounds like a scheme for His rich friends will be the only ones that benfit from all our stupid idea that Bush is leading us to a better tomorrow.

    Well look at Prescrption Drugs, that is a disastor one, we will all be paying more for our prescrption drugs, By the time the next generation comes up for social Security benefits there will be none, what will you do, what will your children do, you think you have it bad wait until there time comes.

    Is this what you want for your children and grandchildren future?

    Both parties and people of either party ban together and say no to Bush and his plan.

    We have a war that is still going on, to pay for, who knows what natural disastor will hit any country.

    Money does not grow on trees, but you can know one thing the rich will have all the benefits and will benefit from your social security funds that you have worked for.

    NO TO BUSH

    on his plan to destroy SOCIAL SECURITY.

    THINK ABOUT IT. PARTY MEMBERSHIP
    IS NOT GOING TO PAY THE BILL.

  • Why would anyone take Bush’s word for anything? Like we are supposed to trust that he of all people knows what is best for us. No one seems to be buying it.

    "Social Security Isn’t in Crisis, U.S. Congressman Rangel Says"
    http://www.bloomberg.com/apps/news?...

    "They think by scaring people they would help increase support for privatization, but the facts prove that there is no imminent crisis.’’

    While Social Security faces a challenge with more Americans living longer, it should be able to continue to pay benefits for almost the next 50 years, Rangel said. "