Scott McClellan just let a little bit of truth sneak out during his Friday WH press briefing, responding to a reporter's question about whether the issues of "private accounts" and Social Security solvency are separate: McClellan called private accounts a "philosophical issue" that's about "trusting people" and giving them control over their own retirement. In other words, privatization has nothing to do with fixing the long-term fiscal problems of Social Security,and everything to do with conservatives' philosophical opposition to the government-run Social Security program itself (including an argument -- rarely advanced publicly -- that the Social Security system, in and of itself, is a threat to Americans' privacy). (Check out this CATO dispatch shortly after the 2002 midterm elections.)
Key para:
In his policy analysis, "'Saving' Social Security Is Not Enough", Tanner makes a strong case for the creation of individual investment accounts to solve the mounting problems that Social Security faces. In the study, Tanner notes that "instead of saving Social Security, we should begin the transition to a new and better retirement system based on individually owned, privately invested accounts. The new system would allow workers to accumulate real wealth that would prevent their retiring to poverty."
Other quotes from privatizers:
“Social Security is the soft underbelly of the welfare state. If you can jab your spear through that, you can undermine the whole welfare state.” -- Stephen Moore, CATO Institute/former president of Club for Growth, to the NYT.
“Social Security should be reformed not because the system is going broke but because it’s a lousy program,” Grover Norquist, NYT
“The (private) accounts will create the first 100 percent capitalist society in history. ... Fifty years from now, relatively poor Americans for the first time will have their own personal savings; they’ll see the power of interest buildup over time and appreciate the importance of property.” -- Former House speaker Newt Gingrich, NYT.
Two questions later, McClellan backtracked, at least partially. Paraphrase:
Q: "Is it right that the Bush administar has two goals: one is to get the personal accounts, which may do lots of wonderful things but they don't help the solvency of Social Security ... and then youve got the other goal of improving the solvency of Social Security, but they're really separate things..."
McAnswer: "No, it's one goal ... to strengthen social security for our children and grandchildren and both things are part of the same goal. ... yes, personal accounts in themselves don't solve the solvency issue, but they are a part of strengthening Social Security..."
On a related note, Paul Krugman made an excellent point on Al Franken's show yesterday regarding means testing: namely, that it wouldn't help, since the wealthiest Americans -- the top 1 percent, only get slightly more than 1 percent of the benefits under the current system, so means testing wouldn't save much money.
BTW, with the news of Florida Congressman Clay Shaw's apparent apostasy on the Social Security issue (he's making his own proposal to counter the president's) comes a warning for Democrats: they had better get out in front of this issue with ideas of their own. Here's a thought: why not revive the Clinton-era idea of a national 401K that would be an add-on, to, rather than a replacement for, Social Security?
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