Bush's Social Security Plan

february 7, 2005

Here's what Salon.com says about the Bush's Social Security reform plan:

The Bush administration concedes that the president's plan for private investment accounts won't do anything to improve the financial health of the Social Security system. The plan will have a "net neutral effect," the administration says, meaning that, whatever Washington does with Bush's proposal, it will have to come up with some other way to "save" Social Security.
How does your President see the plan? Check out this quote from the White House (said by the President):
"Because the -- all which is on the table begins to address the big cost drivers. For example, how benefits are calculate, for example, is on the table; whether or not benefits rise based upon wage increases or price increases. There's a series of parts of the formula that are being considered. And when you couple that, those different cost drivers, affecting those -- changing those with personal accounts, the idea is to get what has been promised more likely to be -- or closer delivered to what has been promised. "Does that make any sense to you? It's kind of muddled. Look, there's a series of things that cause the -- like, for example, benefits are calculated based upon the increase of wages, as opposed to the increase of prices. Some have suggested that we calculate -- the benefits will rise based upon inflation, as opposed to wage increases. There is a reform that would help solve the red if that were put into effect. In other words, how fast benefits grow, how fast the promised benefits grow, if those -- if that growth is affected, it will help on the red. "Okay, better? I'll keep working on it."
Does this man actually have any idea what he is saying? Because with an answer like that, I think he is as confused as we are when we read that quote.

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