Problems in Privatizing Social Security
Protecting Social Security
Many Americans are worried about retirement security, and whether the combination of Social Security, their 401 (k) plan or pension, and their savings will be enough. In fact, Republicans have essentially proposed eliminating Social Security benefits as they exist now, saying the program is no longer sustainable and that it should be privitized. Democrats have a different plan. We want to save, strengthen, and secure Social Security for generations to come.
A Basic Commitment to Preserve Benefits. Especially now, when so many workers have lost their retirement savings because of drops in the stock market, Democrats believe that ensuring the stability of Social Security pensions is more important than ever. President Bush’s commission came up with three different plans to privatize Social Security, and every one of these plans cut Social Security’s guaranteed benefits. Only the Republicans would think that an average Social Security benefit of $850 a month is too much.
Social Security Faces a Challenge, Not a Crisis. Republicans are scaring younger workers about Social Security’s solvency. Social Security will be fully solvent for the next forty to fifty years, and even after that it will to continue to be able to pay 80 percent of benefits.
Protecting the Social Security Trust Fund. Democrats want to return the government to a path of fiscal responsibility. The government needs to get back to balanced budgets and fiscal discipline as soon as possible in order to ensure that we can protect the Social Security Trust Fund for future retirees. The Social Security Trust Fund is based on the contributions of millions of workers in order to ensure that every American can achieve retirement security. That means that Congress should not be allowed to spend Social Security taxes on anything but Social Security benefits. Instead of making American seniors pay for the Bush Administration's fiscal recklessness, the Bush Administration should work with Congress and get their spiraling deficit under control. Under the Republican plan, the Social Security Trust Fund does not get stronger - it gets weaker.
Opposition to privatization. Privatization proposals would subject the retirement benefits of American workers to the volatility of the stock market. All of the privatization plans proposed by Republicans require a $2 trillion, up-front infusion of funds, because they take $2 trillion out of Social Security and promise it to younger workers for investments in private accounts. Democrats know that privatization isn't fiscally responsible and won't provide American workers with a secure retirement. Privatization would endanger the benefits of current retirees and directly cut benefits by almost 50 percent for future generations of retirees.
Democrats want to save, strengthen, and secure Social Security. Our senior citizens should not be guinea pigs for a political experiment. Democrats will fight to ensure that all workers are paid the benefits they were promised. We are working to reduce the deficit in order to protect the Social Security Trust Fund. And fighting the Republicans’ radical Social Security plan is just part of our efforts to help all Americans achieve financial security. We are working to secure pension benefits, make it easier for workers to save for retirement by enhancing and strengthening investment vehicles like 401(k)s and IRA plans, and provide clear information on retirement investment options.
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