Saturday's Democratic response to the presidential radio address was delivered by Sen. Debbie Stabenow of Michigan. For the third straight week, the topic is President Bush's plan to privatize Social Security.
Hello. I'm Senator Debbie Stabenow.
Social Security reflects the best of American values. It's a
promise our government makes to all Americans that if you work hard and
play by the rules, you'll be able to count on a basic quality of life
and dignity in your older years.
Social Security is not a handout. It's a benefit that Americans earn by working hard all their lives and paying into the system.
But Social Security is about more than retirement, it's
America's insurance policy. It protects you whether you're a
22-year-old just starting your career, or you're a 75-year-old enjoying
retirement.
It's not just about tomorrow, it's about today.
Social Security covers you if you lose a parent, or if you become disabled.
Social Security is the great American success story.
Before Social Security, 50 percent of older Americans were
living in poverty. Now, it's only 10 percent. If that's not a success
story, I don't know what is.
Some claim that Social Security is in crisis, but let's look at the facts.
The nonpartisan Congressional Budget Office reports Social
Security can pay 100 percent of its commitments until the year 2052 --
almost 50 years.
Still, the program does face long-term challenges, and we should act to strengthen and improve the program for the long term.
Democrats want to be a part of that effort, and it will require
some hard choices. But to provide some perspective, the projected
long-term Social Security shortfall is only one fifth, or 20 percent,
the cost of the tax breaks enacted by President Bush.
Democrats look forward to receiving a detailed Social Security
proposal from President Bush. But we're concerned by some recent leaks
from the White House.
A memo prepared by an administration official suggests
President Bush will push a privatization plan with deep cuts in
benefits. These cuts would be as high as 25 percent for some current
workers, and 45 percent for retirees in the future. And the benefit
cuts would apply to all seniors, even those who choose not to invest in
privatized accounts.
America's insurance policy was never meant to be a privatized
401-K plan, or a high-risk investment. It was meant to be the secure
foundation for your retirement.
I remember the looks on the faces of Enron employees, many with
tears in their eyes, who told me, "Thank God for Social Security, it's
all I have left."
Beyond its deep benefit cuts and added risks, privatization
also would substantially add to the National Debt. Our nation already
is staggering under the largest budget deficit in the history of the
country.
Taking on even more debt could destabilize financial markets,
drive up interest rates, and stifle economic growth. It also would
force our children and grandchildren to bear the burdens of more debt
and higher taxes.
When I think about my own children and all young Americans
across our country who have hopes and expectations for a secure
financial future, I cannot imagine piling even more debt onto their
shoulders.
Democrats hope that the president will reject privatization
schemes that would require deep benefit cuts and massive increases in
the National Debt.
We want to work with the president to strengthen and improve the program.
Senator Max Baucus, our senior member on the Finance Committee, will be leading our caucus on this issue.
Democrats look forward not only to making Social Security more
secure, but to developing new and innovative ways to promote savings in
addition to Social Security.
Too few Americans are saving for their future, and we must address that. It's simply not enough to maintain the status quo.
Democrats are committed to keeping the security in Social
Security. At the same time, we want to look to the future to create new
ways for Americans to build wealth and retirement security, because
every working American deserves a secure retirement.
I'm Senator Debbie Stabenow. Thank you for listening.
I have trouble believing that Americans will let President Bush make
changes to Social Security that would cut benefits to retirees in the
near term and solve no long-term issues.
But it's a huge mistake to think privatization won't happen. As
Bush's second term begins this week, no one should misunderstimate his
ability to steer the ship of state towards an iceberg.
Three numbers for anyone who believes there's an imminent
danger to Social Security that must be addressed today with the most
radical changes in the history of the program:
