Bush Encourages Social Security Bill Without Private Investment Accounts

[MsUSA]

President Bush encouraged a Republican senator Tuesday to offer Social Security legislation that would not include the private investment accounts that were the centerpiece of the plan Bush has promoted all year.
Bush's nod to Utah Sen. Bob Bennett comes as public polls show that most Americans do not support the president's handling of the Social Security issue. Congress has been deadlocked on it.

Bennett said that during a luncheon with other Republican senators at the White House, he told the president of his plans to introduce the bill as early as next week.

"He indicated that I should go forward and do that," Bennett said. "And I'm grateful to have him do that even though his own preference would be to have personal accounts included."

http://ap.tbo.com/ap/breaking/MGBGTN4I8AE.html

[swag]

1. Here's a June 17 SLC Trib article on the Bennett approach

. Here's a June 17 SLC Tribune report on Bob Bennett's plan
. . .

The core of Bennett's proposal hinges on changing the way increases in Social Security payments are calculated year-to-year. They are now tied to wages, which rise faster than inflation.
That would continue to be the case for the poorest third of the population. For the wealthiest 1 percent, Bennett's plan would index the increases to the inflation rate, meaning a slower increase than now projected. Those in the middle would have payments based on an index that blends the wage levels and inflation rates.
His plan also includes "longevity indexing," meaning those who draw on the system for a long period of time would see their payments increasing at a slower rate later in life.
Bennett's other bill would allow the creation of personal investment accounts.
He says separating the two parts of the puzzle enables those who want to ensure Social Security's solvency to vote to do so, and also creates a vehicle for those supporting private accounts.

http://www.sltrib.com/utah/ci_2807560

[rodeodance]

2. so his 60 days pony show gets rained on--te he.

[Bozita]

4. "60 cities in 60 days" -- just another Bush LIE

Last I heard, he did about 14 cities in over 60 days.

[Kagemusha]

3. You know, if we get past all the "phasing SS out" plotline,

those proposals don't actually sound half bad...

Though I do read Josh Marshall's blog and I have seen the extensive arguments for not compromising a single middle class retirement dollar.

[Cleita]

5. Why can't they leave it alone.

Or, do the sensible thing and raise the caps on SS. They also need to stop raiding it for wars. We do need that lock box Gore spoke about.

[Kagemusha]

6. The only way the "lock box" can be raided is repudiation of bonds

Just so you know, since the first thing you learn when learning about finance and economics is how unclear people try to make it so that normal folks have no clue what's really going on. Washington budgeting is one of the world's foremost practitioners of haze (though I can't speak for say, the EU budget).

[barbaraann]

7. Here's what they're going to try to do:

They are going to take the Social Security "surplus" and invest in directly in the stock market for us. They were talking about that on Al Franken this morning. So, they will evade having people choose what fund they want to invest in, etc. and just give money from the Federal treasury directly to their Wall Street buddies. If they do this, it will probably all disappear in less than five years.

After they have stolen the "surplus," they'll figure out a way to steal the rest of it, too.