Bush’s awful plan to privitize social security

[struggle4progress]

By Andrew Hammond
January 11, 2005

Two-term Republican president Dwight D. Eisenhower once wrote, “Should any political party attempt to abolish social security, unemployment insurance, and eliminate labor laws and farm programs, you would not hear of that party again…There is a tiny splinter group, of course, that believes you can do these things. Their number is negligible and they are stupid.” Sadly, their number is no longer negligible, but they are certainly still stupid.

The President’s proposal to privatize social security is despicable and its consequences will be cataclysmic. Here are four simple facts about Bush’s plan to privatize and eventually dismantle social security.

First, Wall Street will be the only winner. Investigative reporters have found that investment companies are giving millions to political organizations and policy groups that advocate the privatization of social security. And why wouldn’t they? These companies could win $75 billion a year if Bush gets his way. A few million now for several billions every year is a mind-blowing return, even for the fat cats on Wall Street. Bush’s policy would urge ordinary Americans to invest their money in the stock market. We all know how that turned out in 1929. It is revolting that in a democracy, millionaires could take from the hard-earned incomes of ordinary citizens, and with Bush’s plan, that is precisely what will happen.

Second, Bush’s proposal will not increase national savings. Instead of gaining money from an initial investment, Americans would simply be transferring their taxes from the social security fund to an individual account, which would have no effect on aggregate savings. The plan will not generate more money; it will simply move the existing money around. <more>

http://maroon.uchicago.edu/viewpoints/articles/2005/01/11/bushs_awful_plan_to_.php

[eridani]

1. That's PIRATIZE Social Security!

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