Wyden crowd says it loud - Don't privatize!

(2/22/2005) -- Several hundred people gathered yesterday in Northeast Portland to make their views known on President Bush’s plan to privatize Social Security. The verdict was unanimous among those that made it to the microphone. Don’t privatize – fix the projected shortfall…but don’t privatize!

The crowd at yesterdays “Listening Session on Social Security” held by Senator Ron Wyden was also largely opposed to the Bush plan and let their views be known through cheers and applause.

Speakers emphasized that Social Security has done a great job in keeping seniors and the disabled out of poverty. Privatization, they contended, would mean benefit cuts for many if not all and does nothing to address the long-term solvency issues that Social Security does face.

Eliminate tax cuts for the wealthy

In addition to the more familiar arguments against privatization, several speakers made a connection between the enormous Bush tax cuts for the wealthy, the Social Security Trust Fund, and the projected shortfall in 40 or 50 years. “Eliminate the tax cut and you make it easier to pay back the Trust Fund and shore up the long-term solvency of the program.”

Laurie King of Portland Jobs with Justice implored Senator Wyden to not only oppose privatization but to “take leadership to expose the Bush plan for the scam it is.”

Prior to the statements from the general public, a four-man panel made their views known to the Senator. The panel included Rick Bennett from AARP, Steve Buckstein of the Cascade Policy Institute, Tim Nesbitt from the Oregon AFL-CIO and Bob Joondeph from an advocacy group for the disabled. All but Steve Buckstein opposed Bush’s privatization plan.

Social Security an insurance program - not investment

Rick Bennett started things out by emphasizing that Social Security is an insurance program, not an investment scheme. He noted that this social insurance program covers 156 million Americans and stressed that the solution to problems with Social Security should not be worse than the problem. He added that Bush’s privatization plan would add 4 trillion dollars to the national debt.

Steve Buckstein likened the situation with Social Security to the Titanic headed toward an iceberg. As a massive federal program, Social Security needs to address problems now because a change of course will take a long time to accomplish. Buckstein focussed on the “demographic gap” where an ever-shrinking pool of workers is supporting larger number of retirees.

Trust fund holds safest investment in world

Tim Nesbitt took issue with the notion that the Social Security Trust fund holds nothing but a bunch of government IOU’s. In fact, he noted that the Treasury bonds held by the fund are considered by investors to be the most safe and secure investment one can make. In a pointed rejoinder to those that argue that the investment return is bad, he said that currently the average yield for the bonds in the trust fund is over 6%.

First do no harm

Nesbitt closed his remarks by saying that any reform of Social Security should “first do no harm.” Second, we should lift the $90,000 cap on earnings subject to the Social Security tax. Finally, the government must pay back the money it has borrowed from the Social Security Trust Fund.

Social Security helps keep disabled people out of poverty

Bob Joondeph reminded the Senator and those present that over $7 million disabled and their dependents get Social Security payments. In fact, one third of the Social Security payments go to non-retirees. Joondeph’s recommendations to Wyden included:

• Ensure solvency of the program

• Keep Social Security an insurance program

• Maintain benefit levels that do not drive people into poverty

• Understand impact of reform before changes are made

Senator Wyden’s responded to the session by emphasizing that he strongly opposed privatization and seemed to indicate that he would take leadership in the opposition.