Topics in the News: Privatization
Fred Thompson on Social Security
: Nov 25, 2007
Allow 2% into a private personal account, with 2% match
I have put out a Social Security plan that basically faces up to the fact that Social Security is going bankrupt and we're going to have to do something about it. I put out a proposal to save Social Security and save money for the government at the same
time and allow individuals to set forth 2% of their payroll into a private personal account, with the government matching that. In the long run, the government would come out ahead. A person would have a nest egg at the end of his retirement time.
And if you do that in conjunction with indexing the initial Social Security benefit to inflation instead of wages, at the end of the day you're going to save Social Security. You're going to put it on a sustainable basis.
And it will save the government $4.7 trillion at the end of the day. So eventually you do have to address the spending side, but the spending is going to have to be addressed on the basis of our entitlement difficulties.
Click for Fred Thompson on other issues.
Source: Fox News Sunday: 2007 "Choosing the President" interviews
John Edwards on Social Security
: Nov 18, 2007
Don't privatize; reduce benefits; nor raise retirement age
Q: There was a spirited exchange between Sen. Clinton and Sen. Obama on whether to increase taxes on income levels for Social Security. Right now the cap, maximum, that is taxed is $97,500. Sen. Obama suggested it go up, that the wealthy can afford to
pay more in order to keep Social Security robust. Sen. Clinton was not ready to do that, saying that there are middle-class people making more than $97,500. Does she have a point?A: Well, she has a point. But the point doesn't go as far as it needs to
go. The problem is that Sen. Clinton is not for privatizing, not for reducing benefits, not for raising the retirement age. I completely agree with all that. But she's made no proposal about what we're going to do. So what is her proposal?
That she set up a bipartisan commission, and they'll solve the problem. The president of the US has to lead on these issues. I agree mostly with what Sen. Obama is saying. I do think we have to do something about the cap.
Click for John Edwards on other issues.
Source: CNN Late Edition: 2007 presidential series with Wolf Blitzer
Rudy Giuliani on Social Security
: Oct 21, 2007
Supports adding private accounts for Social Security
Giuliani backed adding private accounts for Social Security, a proposal that failed to win support when offered by President George W. Bush in
2005, and cutting the cost of health insurance so that more people can buy their own coverage. "If you start to establish a private market, you're going to be able to figure out how to solve these things within costs that are sustainable," he said.
Click for Rudy Giuliani on other issues.
Source: Bloomberg.com report on 2007 GOP primary debate in Orlando
Mitt Romney on Social Security
: Oct 21, 2007
Favors private accounts; prepared to be entirely bold
Romney said he "was prepared to be entirely bold," in taking on the politically perilous issue of entitlement spending, "but I'm not prepared to cut benefits for low-income Americans." He said he favored private accounts and would consider tying
Social Security benefits to prices rather than wages for higher income Americans. Romney said "effective leadership that brings people from both sides of the aisle together" could solve the problem of escalating costs for Medicare and Medicaid.
Click for Mitt Romney on other issues.
Source: Bloomberg.com report on 2007 GOP primary debate in Orlando
Mike Huckabee on Social Security
: Oct 21, 2007
Personalization of retirement funds, not privatization
Q: What's your Social Security plan?A: The president had the right idea, but he used the wrong word. When he used the word privatization, it scared the daylights out of a lot of people.
Q: Well, he didn't. He used the word private accounts.
A: Well, but it scared the daylights out of people because they're thinking Enron and WorldCom, and that that's where their money would go. The right word is personalization. Empower individuals to have a greater say over their money.
And that's what it is. Keep the government from robbing the trust funds, which is something that, if it was done in the private sector, would get a guy in jail. One thing, when people reach retirement age, if they really have enough retirement benefits,
they don't need Social Security for the long term, give them the option of one-time buyout, or the opportunity to purchase an annuity, with their funds, tax-free, that frees up the long-term obligation of the government.
Click for Mike Huckabee on other issues.
Source: 2007 GOP primary debate in Orlando, Florida
Mitt Romney on Social Security
: Oct 21, 2007
Private accounts work better than extending retirement age
I'm not prepared to cut benefits for low-income Americans. We're going to make sure that we protect these programs for our seniors. Currently, we're taking more money into Social Security that we actually send out. So our current seniors, their benefits
are not going to change. For people 20 and 30 and 40 years old, we have four major options for Social Security.- The one Democrats want: raise taxes. It's the wrong way to go.
- The president said let's have private accounts and take that surplus
money that's being gathered now in Social Security and put that into private accounts. That works.
- Other people said, well, extend the retirement age. That mathematically works. It's not as attractive.
- And the last is to index the Social
Security benefits, the first benefit, to something other than wages, which is what it has always been. But, in my view, that's the wrong way to go, other than for higher-income Americans. Let's consider indexing based on prices rather than wages.
Click for Mitt Romney on other issues.
Source: 2007 GOP primary debate in Orlando, Florida
Rudy Giuliani on Social Security
: Oct 21, 2007
Get a consensus behind private accounts
I think the reality is that we have to deal with Social Security. The first thing we have to do is get a consensus behind private accounts if we're going to change it. And the fact is, Medicare and Medicaid and presently more expensive than
Social Security. So I think in both cases, if you start to establish a private market, you're going to be able to figure out how to solve these things within costs that are sustainable.
Click for Rudy Giuliani on other issues.
Source: 2007 GOP primary debate in Orlando, Florida
Tom Tancredo on Social Security
: Oct 9, 2007
Private Social Security accounts needed to end deficit
If you want to control federal spending, you must look at Social Security and Medicare, and it's a dicey game. I know the president tried, touching that 3rd rail, [but] jumped back immediately.But the reality is this: If you don't do it, forget about
reducing federal spending. It's not going to happen. You better address Social Security. You better come up with a way to allow for private Social Security accounts, structurally fix both of those things, or forget the idea of ending deficit spending.
Click for Tom Tancredo on other issues.
Source: 2007 Republican debate in Dearborn, Michigan
Bill Richardson on Social Security
: Sep 6, 2007
Don't raise the cap; it's a 15% tax on middle class
Q: Would you raise the cap for Social Security tax above the current level of the first $97,500 worth of income?A: No, you don't need to do that. That's a 15% tax on small businesses, on the middle class, on family farms. You don't need to do that.
This is what you do. One, you take privatization off the table. You don't want Social Security in the stock market. Two, you stop raiding the Social Security Trust Fund, as the Congress and the president constantly do.
Click for Bill Richardson on other issues.
Source: 2007 Democratic primary debate at Dartmouth College
Barack Obama on Social Security
: Sep 6, 2007
Privatization puts retirement at whim of stock market
Q: Would you raise the cap for Social Security tax above the current level of the first $97,500 worth of income?A: I think that lifting the cap is probably going to be the best option. Now we've got to have a process [like the one] back in 1983.
We need another one. And I think I've said before everything should be on the table. My personal view is that lifting the cap is much preferable to the other options that are available.
But what's critical is to recognize that there is a potential problem: young people who don't think Social Security is going to be there for them. We should be willing to do anything that will strengthen the system, to make sure that that we are being
true to those who are already retired, as well as young people in the future. And we should reject things that will weaken the system, including privatization, which essentially is going to put people's retirement at the whim of the stock market.
Click for Barack Obama on other issues.
Source: 2007 Democratic primary debate at Dartmouth College
Chris Dodd on Social Security
: Sep 6, 2007
Achieve solvency but don't go so far as to raise the cap
Q: Would you raise the cap for Social Security tax above the current level of the first $97,500 worth of income?A: I don't think you have to go that far. You could raise that tax far less than all incomes here and achieve the same result
by achieving solvency. But issues like privatization have to be off the table, and I believe you can achieve that solvency here by doing simpler things without the draconian measures that some have suggested.
Click for Chris Dodd on other issues.
Source: 2007 Democratic primary debate at Dartmouth College
Dennis Kucinich on Social Security
: Sep 1, 2007
Strengthen protections for private pensions
A champion of working families, Dennis Kucinich will lead America into expanding opportunities, universal health care, restore our schools and strengthen
Social Security and protections for private pensions.
Click for Dennis Kucinich on other issues.
Source: Campaign website, www.dennis4president.com, "Issues"
Tom Tancredo on Social Security
: Sep 1, 2007
There is no question that the system is broken
There is no question that the system is broken. Projections show that by 2016, the only way to avert its collapse will be deep cuts in benefits, heavy borrowing, or substantial tax hikes. The best suggestion
I have heard is to switch from a defined benefits approach to a defined contribution approach with payroll tax funded private investment accounts. These accounts would be made available to young workers and function similarly to 401Ks.
Click for Tom Tancredo on other issues.
Source: Campaign website, www.teamtancredo.com, "Issues"
Barack Obama on Social Security
: Aug 26, 2007
Stop any efforts to privatize Social Security
Obama believes we need to preserve Social Security by stopping any efforts to privatize it and will work across party lines to maintain Social Security's solvency for generations. Obama wants to make private saving easier, cheaper,
& more automatic for middle-class workers. He supported the Save More for Retirement Act, which encourages automatic 401K enrollment. Obama also voted for new rules to force companies to properly fund their pension plans so taxpayers don't foot the bill.
Click for Barack Obama on other issues.
Source: Campaign website, BarackObama.com, "Resource Flyers"
Hillary Clinton on Social Security
: Aug 8, 2007
Make sure nobody ever tries to privatize Social Security
We've got to make sure that nobody ever tries to privatize
Social Security, something that I've fought tooth and nail with many of you to prevent.
Click for Hillary Clinton on other issues.
Source: 2007 AFL-CIO Democratic primary forum
Chris Dodd on Social Security
: Jul 23, 2007
No privatization; but raise earning cap over $97,000
Q: We all know that Social Security is running out of money, but people who earn over $97,500 stop paying into Social Security. The Congressional Research Service says that if all earnings were subject to payroll tax, the
Social Security trust fund would remain solvent for the next 75 years.A: I don't disagree with that. This is an issue that comes to a head by the year 2040. Obviously, I think it would be important to start to address the issue.
Certainly, we have no ideas, and I would be totally opposed to the privatization of Social Security. That is a very bad idea and I am glad we rejected it. But one of the ideas is to raise that level above $97,000.
Q: Do you support that?
A: I would support that. That is one of the solutions that would make a lot of sense to me to make the trust fund whole.
Click for Chris Dodd on other issues.
Source: 2007 YouTube Democratic Primary debate, Charleston SC
Bill Richardson on Social Security
: Jul 23, 2007
Stop talking about privatization; stop raiding trust fund
Q: Medicare, Medicaid and Social Security need to be radically changed to avoid a financial crisis when baby boomers retire. There are two solutions, both of which are politically unpopular: Raise taxes or cut benefits. Which would you choose?A:
The best solution to those two issues is a bipartisan effort to fix it. 33% of Medicare cost is diabetes. Let's have major prevention programs, and also ways that we can ensure that we find a cure. And stop raiding the Social Security trust fund.
Stop talking about privatization. And then thirdly, let's look at a universal pension, 401(k) universal pension, that would assure portability for those that want to keep their pensions as they move into other professions. But what we need is a
bipartisan effort. Put this issue aside. If I'm president, I would take this issue and I would say, Republicans, Democrats, within a year, let's find a solution. No politics. This is the safety net of this country.
Click for Bill Richardson on other issues.
Source: 2007 YouTube Democratic Primary debate, Charleston SC
Barack Obama on Social Security
: Jul 23, 2007
No privatization; but consider earning cap over $97,500
Q: We all know that Social Security is running out of money, but people who earn over $97,500 stop paying into Social Security. The Congressional Research Service says that if all earnings were subject to payroll tax, the
Social Security trust fund would remain solvent for the next 75 years.A: I think that it is an important option on the table, but the key, in addition to making sure that we don't privatize, because
Social Security is that floor beneath none of us can sink. And we've got to make sure that we preserve Social Security is to do the same thing that
Ronald Reagan and Tip O'Neill were able to do back in 1983, which is come up with a bipartisan solution that puts Social Security on a firm footing for a long time.
Click for Barack Obama on other issues.
Source: 2007 YouTube Democratic Primary debate, Charleston SC
John Cox on Social Security
: Jul 2, 2007
Private retirement accounts are best reform
Social Security has to be preserved, but is unsustainable in its current form. Private retirement accounts are the best hope we have to reform the system and make it financially available to future generations.
Myths, lies, and demagoguery are the hallmarks of the political debate and must be replaced by sound reasoning and facts. Medicare and Medicaid are even bigger financial time bombs. I support managed care, vouchers and health savings accounts.
Click for John Cox on other issues.
Source: Campaign website, cox2008.com
Hillary Clinton on Social Security
: Oct 22, 2006
Soc.Sec. one of greatest inventions in American democracy
Q: What would you do to fix the problems with Social Security?SPENCER: I would support the concept, that Sen. Clinton calls ruining Social Security, that we can do better than making 2%, as it does now. We should look at various programs that allow
people some control over their money, with protections & caps. They call that privatizing to scare everybody away, but the bottom line is working together so younger generations can make more than 2% on Social Security.
CLINTON: Social Security is one
of the greatest inventions in American democracy, and I will do everything possible to protect & defend it, starting with getting back to fiscal responsibility, instead of borrowing from the Social Security trust fund. We need to provide some additional
opportunities for people to invest, on top of their base guarantee of Social Security, more of a chance to build their nest egg. The risky scheme to privatize would cost between $1 and $2 trillion. That would undermine the promise of Social Security.
Click for Hillary Clinton on other issues.
Source: NY 2006 Senate Debate, at University of Rochester
Barack Obama on Social Security
: Oct 1, 2006
Stock market risk is ok, but not for Social Security
If the guiding philosophy behind the traditional system of social insurance could be described as "We're all in it together," the philosophy behind Bush's Ownership Society seems to be, "You're on your own." Relying on the magic of the marketplace is a
tempting idea, elegant in its simplicity. But it won't work.Take the Administration's attempt to privatize Social Security. The Administration argues that the stock market can provide individuals a better return on investment, and in the aggregate
they are right; historically, the stock market outperforms Social Security's cost of living adjustment. But individual investment decisions will always produce winners and losers. What would the Ownership Society do with the losers?
That doesn't mean
we shouldn't encourage individuals to pursue higher-risk, higher-return investment strategies. They should. It just means that they should do so with savings other than those put into Social Security.
Click for Barack Obama on other issues.
Source: The Audacity of Hope, by Barack Obama, p.178-179
Mitt Romney on Social Security
: Aug 25, 2006
Reform entitlements by negotiating behind closed doors
Romney says it's time to reform the two major entitlement programs: Social Security and Medicare. "It's really not possible for us to remain a superpower without restructuring our entitlements programs," Romney says. Romney says leaders from both
political parties will have to come up with a solution in private. "Sitting down, quietly, behind closed doors and having a full and complete discussion of various ways to bring the costs down and to keep it from getting out of control," Romney says.
Click for Mitt Romney on other issues.
Source: Radio Iowa, "Romney: reform", by O.Kay Henderson
John Edwards on Social Security
: Mar 3, 2004
Don't divert payroll taxes to private accounts
I oppose diverting payroll taxes to private accounts but support offering matching accounts to workers on top of Social Security. I oppose raising the retirement age or cutting COLAs.
Click for John Edwards on other issues.
Source: 2004 Presidential National Political Awareness Test
John Edwards on Social Security
: Sep 25, 2003
Federal match for every dollar put into savings
We have a train wreck coming. We have the onslaught of the baby boomers coming. We have government that's in deficit, getting deeper into deficit. What we ought to do is help people save.
We have one of the worst private savings rates in the world. I would match dollar for dollar the savings of middle-income families to allow them to save privately to help us address this problem.
Click for John Edwards on other issues.
Source: Debate at Pace University in Lower Manhattan
Dennis Kucinich on Social Security
: Sep 25, 2003
Privatization is off the table-I'll block it
First of all, the Social Security money belongs to Main Street, not to Wall Street. It needs to be said very clearly here that privatization is off the table. There will be no privatization when I'm elected president. I'll block any effort.
Social Security, as a matter of fact, is a better investment now than the stock market. There's a higher return. There's guaranteed cost-of-living increases. Privatization you have to worry about the value of your account.
Click for Dennis Kucinich on other issues.
Source: Debate at Pace University in Lower Manhattan
Dennis Kucinich on Social Security
: May 17, 2003
Stop privatization and return retirement age to 65
I'll lead the way to protecting Social Security and stop the privatization of Social Security and bring the retirement age back to 65. People are working their whole lives. They should be able to retire at 65 years old, not keep moving that retirement
age back. I'll stop the privatization of Medicare. It is time for a fully funded universal health care system. Medicare for all. Take the profit out of health care. Get the insurance companies out of health care. Return health care to the people.
Click for Dennis Kucinich on other issues.
Source: AFSCME union debate in Iowa
Al Gore on Social Security
: Nov 3, 2000
Bush didn’t know Soc.Sec.is federal; don’t trust him with it
Gore spent the day hammering at comments Bush made on Social Security. Bush said his [partial privatization] plan scares some people “because they want the federal government controlling the Social Security, like it’s some kind of federal program.” Gore
pressed his frequent argument that Bush’s plan effectively promises about $1 trillion from the Social Security Trust Fund to two groups of people: younger workers paying into the system, and older workers receiving current benefits. “That program,
which is indeed a federal program, reshaped the later years of our human life cycle-and it provided dignity,“ Gore said. ”If four days from a national election, he doesn’t know Social Security is a federal program, that may explain why he has been so
willing to loot the money from the trust fund.“
In an earlier appearance in Iowa, Gore was blunter: ”Do you want to entrust the Oval Office to somebody who doesn’t even know Social Security is a federal program?“
Click for Al Gore on other issues.
Source: CNN.com
Al Gore on Social Security
: Oct 19, 2000
Claim that Social Security will go bankrupt is misleading
Gore said that Bush intended to take $1 trillion out of the Social Security trust fund and had promised the same money twice-once for the private accounts and once to pay benefits to retirees.Gore was right to say that Bush’s plan will require $1
trillion to get started. Gore was also right that the money would come out of payroll taxes. But Gore was on shakier ground in suggesting that putting $1 trillion into private accounts would leave Social Security $1 trillion short of what it needs to pay
in benefits, because of the Trust Fund surplus. Gore has a point in this sense: debt reduction can be seen as a way of saving for when Social Security will need general tax revenues to help pay for benefits.
Gore said that under Bush’s proposal,
Social Security would be bankrupt in 20 years. But Social Security cannot be bankrupt except in the most technical sense. Even if nothing is done to help the system, Social Security will be able to pay more than 70% of promised benefits indefinitely.
Click for Al Gore on other issues.
Source: NY Times analysis of St. Louis debate
Al Gore on Social Security
: Aug 18, 2000
Dedicate the budget surplus first to saving Social Security
I will not go along with any proposal to strip one out of every six dollars from the Social Security trust fund and privatize the Social Security that you’re counting on. That’s Social Security minus. Our plan is Social Security plus. We will balance the
budget every year, and dedicate the budget surplus first to saving Social Security. Putting both Social Security and Medicare in an iron-clad lock box where the politicians can’t touch them -- to me, that kind of common sense is a family value.
Click for Al Gore on other issues.
Source: Speech to the 2000 Democratic National Convention
Al Gore on Social Security
: Jun 13, 2000
Social Security Plus: voluntary tax-free private investment
Gore pledged to create a new, independent retirement account that would supplement Social Security. “Social Security Plus” [would] add to Social Security’s guaranteed benefit. These tax-free, voluntary accounts would encourage individuals
to save and invest more for their retirement -- without making Social Security subject to the fluctuations of the stock market. Gore will detail his Social Security Plus plan in a future speech. “This is Social Security plus, not Social Security
minus,“ Gore said. ”It doesn’t come at the expense of Social Security -- it comes in addition to Social Security. It is the best of both worlds -- rather than, as some have proposed, the worst of both worlds. You get the freedom to save more and
invest more, but it will not come out of your Social Security. Your Social Security will be there for you to rely upon, no matter how those investments perform.“
Click for Al Gore on other issues.
Source: Press Release, “Social Security Plus”
Al Gore on Social Security
: May 24, 2000
Use stock market for private investment, not Social Security
Gore said today that the stock market was an attractive place for Americans to invest over the long run but that it was the wrong place to seek a solution to Social Security’s problems. “The magnitude of the government’s stock ownership would be such
that it would at least raise the question of whether or not we had begun to change the fundamental nature of our economy,” Mr. Gore said. “Upon reflection, it seemed to me that those problems were quite serious.” Moreover, Gore said, he became convinced
that Wall Street’s ups and downs were large enough to create a risk that the government might be making a bad investment. During long stretches -- including from the late 1960’s to the early 1980’s, Wall Street was by no means
the one-way bet it has often been viewed as in recent years. He said any investment in the markets should “come on top of Social Security,” rather than as a replacement for it.
Click for Al Gore on other issues.
Source: Richard W. Stevenson and James Dao, Associated Press
Al Gore on Social Security
: Apr 5, 2000
Privatization is “stock market roulette”
Gore charged that Bush’s proposal for deep tax cuts and allowing workers to invest in private savings accounts would undermine what he called “the greatest act of social policy” in the country’s history. Gore charged that Bush’s willingness to partially
privatize the Social Security system would subject working families to a form of “stock market roulette” that could leave families worse off, not better. “I believe it’s wrong to ask our elderly to roll the dice with their retirement savings,” he said.
Click for Al Gore on other issues.
Source: Dan Balz, Washington Post, p. A8
John McCain on Social Security
: Jan 11, 2000
Option to invest 20% of payroll taxes in private accounts
McCain will present today his first comprehensive plan for apportioning the spoils of the nation’s current prosperity, calling for. a program to shore up Social Security through the establishment of individual retirement accounts. McCain also
specifically allocates money to help Medicare, which like Social Security faces a financial shortfall as the population ages. He calls for workers to have the option of investing at least 20% of their Social Security payroll taxes in private accounts.
Click for John McCain on other issues.
Source: New York Times, p. A21
John McCain on Social Security
: Jun 2, 1999
Allow workers to invest privately
McCain today called for allowing workers for the first time to invest a portion of their Social Security in private accounts.McCain called for “bold, genuine reform that allows workers to invest some of their Social Security savings, privately, in higher
yielding accounts.” “Promoting investment in America by every American worker would give lower-income Americans the ownership they deserve in the country we share, as well as grow their Social Security more rapidly,” said McCain.
Click for John McCain on other issues.
Source: www.mccain2000.com/ “Press Releases”