Americans of All Ages, Backgrounds Claim Stake in Social Security Debate
Feature Story by archives.civilrights.org staff - 3/30/2005
As the Bush administration shops its controversial Social Security plan to different parts of the country, Americans of all ages and backgrounds are weighing in on the dramatic proposal.A recent poll conducted by Rock the Vote, AARP, and the Joint Center for Political and Economic Studies showed that nearly 60 percent of adults between the ages of 18 and 39 oppose private accounts--a cornerstone of the administration's proposal--if it means receiving lower retirement benefits.
President Bush's proposal to ensure longevity for the plan contemplates creating a voluntary program where beneficiaries could invest part of their payroll taxes into private investment accounts. The funds in these accounts, according to President Bush, would then be invested into a "conservative mix of bond and stock funds that would have the opportunity to earn a higher rate of return than anything the current system could provide."
Supporters of the plan believe that if the government does not act soon to fix the system, the only solution in the future will be to impose tax hikes, massive borrowing, or severe cuts in Social Security benefits and other government programs. The White House also claims that in 2018 the federal government will start to pay more in Social Security benefits than it will be able to collect from payroll taxes.
Opponents of Bush's privatization plan maintain that the Social Security program is not in a "crisis." They say that the current system has enough revenue to provide full benefits until 2042 (or longer) and will continue to offer up to 80 percent of total benefits after that year.
Opponents also note that the administration's proposal only focuses on retirement and not the system's other benefits, which include disability and survivor insurance.
At a recent Congressional Black Caucus hearing on Capitol Hill, several witnesses testified that the President's plan would disproportionately hurt minorities and individuals with disabilities. The witnesses emphasized that Social Security is used for purposes other than retirement.
"While wealth accumulation and sound investment practices are certainly important goals to pursue as a supplement to Social Security's guaranteed benefits, carving money away from Social Security to fund individual retirement accounts would be a disaster of epic proportions for African-American families," said Maya Rockeymoore, vice president of Research and Programs for the Congressional Black Caucus Foundation.
Rockeymoore said that privatization would require deep cuts to the current system and would destabilize funding for the disability and survivors' benefits relied upon by people with disabilities and minority families.
Marie Smith, president of AARP, also expressed her support for the present system and disapproval of the proposed changes.
"Social Security is the only guaranteed, inflation-proof, lifelong benefit that millions of workers - present and future - can count on," she said.
Smith also stated that AARP views Social Security as an obligation to Americans - a government responsibility to ensure that benefits are available when the public needs them.
Hans Riemer of Rock the Vote said that the response of young Americans is not different from older Americans.
"[The] poll shows that young people do not support changing Social Security if it means dismantling the basic safety net, cutting benefits dramatically, or massively increasing the national debt," he said. "We get all three at once under most private account plans."
Riemer further explained that young people are concerned with potential benefit cuts and borrowing for private accounts since these changes will occur primarily to their generation. Furthermore, today's youth will most likely be the group responsible for paying back the debt, he said.
