JohnMck wrote: Yanche wrote:
rockwood wrote:Wasn't it Bill Clinton that wanted to put some social security funds into the stock market when he was in office? I swear I remember the debate about this.
Sorry it was Bush that brought it to the public. From Wikipedia,
This link is broken, either the page no longer exists or there is some other issue like a typo.
"President George W. Bush called for a transition to a combination of a government-funded program and personal accounts ("individual accounts" or "private accounts") through partial privatization of the system. The personal accounts could be invested in various managed investment funds similar to the government employees' Thrift Savings Plan, in which the investor can choose between Treasury Bills, Corporate bonds and a stock market fund. Since the Report of the 1994-1996 Advisory Council on Social Security, the Social Security program has been the subject of widespread debate. After Bush highlighted the issue in his 2005 State of the Union Address, the debate became especially intense."
The Wikipedia article outlines the different debate points, pro and con and ideological.
Wikipedia? You can't be serious.
I guess you don't like Wikipedia as a reference. So here's a link to the state of the union speech right out of former President Bush's mouth.http://stateoftheunionaddress.org/2005-george-w-bush
Here's his social security remarks:
"Fixing Social Security permanently will require an open, candid review of the options. Some have suggested limiting benefits for wealthy retirees. Former Congressman Tim Penny has raised the possibility of indexing benefits to prices rather than wages. During the 1990s, my predecessor, President Clinton, spoke of increasing the retirement age. Former Senator John Breaux suggested discouraging early collection of Social Security benefits. The late Senator Daniel Patrick Moynihan recommended changing the way benefits are calculated. All these ideas are on the table.
I know that none of these reforms would be easy. But we have to move ahead with courage and honesty, because our children’s retirement security is more important than partisan politics. (Applause.) I will work with members of Congress to find the most effective combination of reforms. I will listen to anyone who has a good idea to offer. (Applause.) We must, however, be guided by some basic principles. We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower-income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future.
As we fix Social Security, we also have the responsibility to make the system a better deal for younger workers. And the best way to reach that goal is through voluntary personal retirement accounts. (Applause.) Here is how the idea works. Right now, a set portion of the money you earn is taken out of your paycheck to pay for the Social Security benefits of today’s retirees. If you’re a younger worker, I believe you should be able to set aside part of that money in your own retirement account, so you can build a nest egg for your own future.
Here’s why the personal accounts are a better deal. Your money will grow, over time, at a greater rate than anything the current system can deliver — and your account will provide money for retirement over and above the check you will receive from Social Security. In addition, you’ll be able to pass along the money that accumulates in your personal account, if you wish, to your children and — or grandchildren. And best of all, the money in the account is yours, and the government can never take it away. (Applause.)
The goal here is greater security in retirement, so we will set careful guidelines for personal accounts. We’ll make sure the money can only go into a conservative mix of bonds and stock funds. We’ll make sure that your earnings are not eaten up by hidden Wall Street fees. We’ll make sure there are good options to protect your investments from sudden market swings on the eve of your retirement. We’ll make sure a personal account cannot be emptied out all at once, but rather paid out over time, as an addition to traditional Social Security benefits. And we’ll make sure this plan is fiscally responsible, by starting personal retirement accounts gradually, and raising the yearly limits on contributions over time, eventually permitting all workers to set aside four percentage points of their payroll taxes in their accounts.
Personal retirement accounts should be familiar to federal employees, because you already have something similar, called the Thrift Savings Plan, which lets workers deposit a portion of their paychecks into any of five different broadly-based investment funds. It’s time to extend the same security, and choice, and ownership to young Americans. (Applause.)"
How much of the stated objective did Bush accomplish? Did he "fix Social Security"? If the the personal savings objective had become reality and invested as Bush suggested do you think the "the personal accounts are a better deal" than the current defined benefit social security plan?