[Congressional Record Volume 144, Number 83 (Tuesday, June 23, 1998)]
[House]
[Pages H5039-H5040]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               PRIVATIZATION EQUALS ``SOCIAL INSECURITY''

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from California (Mr. Filner) is recognized for 5 minutes.
  Mr. FILNER. Mr. Speaker, I rise today in support of preserving our 
Social Security system. Social Security

[[Page H5040]]

has worked for 160 million people for nearly 60 years. Study after 
study concludes that Social Security will be fully funded throughout 
year 2032, and in need of only minor modifications to make up a 
relatively small shortfall after that date.
  Mr. Speaker, yes, a careful study should be done, but not a rush to 
privatize this system. Privatization proponents promise huge profits, 
but ignore the risks and inequity inherent in their plans. High returns 
do not come without big risks. And why should we rush to turn over our 
precious retirement system, which provides a guaranteed benefit, to the 
whims of a very fickle stock market?
  Privatization depends on individuals putting their money into 
retirement accounts, something difficult for low-wage workers, mothers 
working part-time while raising children, and those who experience 
family emergencies. Even under a best-case scenario, those who are able 
to diligently add to their retirement accounts may receive poor 
investment advice or, worse yet, the entire market could crash. We saw 
that in our history earlier this century. That is why our Social 
Security system was established. To provide a fair but guaranteed basic 
retirement income.
  Wall Street wants to take a massive amount of American capital, a 
portion of every single working American's paycheck, and gamble with 
it. Yes, Mr. Speaker, gamble with it. The problem of a shortfall after 
the year 2032, not bankruptcy as slick public relations operatives 
would have us believe, could be solved without dismantling our entire 
system. The current successful system keeps half of our elderly 
citizens out of poverty.
  Earlier today, I joined with several of my colleagues in cosponsoring 
legislation in support of strengthening Social Security to meet the 
challenges of the next century. In that bill, 57 of us expressed our 
support for continuing to guarantee a basic retirement for American 
citizens. We pledged to fight for adopting solutions to restore full 
funding of the system after the year 2032 that are nondiscriminatory 
and equitable to Americans of all ages.
  Privatization cannot offer that promise, nor any guarantee. The stock 
market, even with its latest continual rises, is so volatile, so full 
of risk, that an entire industry has been built around tracking its 
daily rise and fall by a few or even more percentage points.
  Social Security, on the other hand, administers its basic retirement, 
which everyone has been encouraged to supplement with their own savings 
and investments, in an equitable way. We as a society then do not have 
to worry about impoverished mothers, fathers, grandfathers, or worse 
yet, those who have no living relatives.
  Privatization proposals also fail to offer another guarantee to 
workers that is one cornerstone of Social Security: A monthly check for 
workers should they become disabled, or for their school-aged children 
if the worker dies.
  Social Security does have enough money to pay all benefits until the 
year 2032. Sure, adjustments must be made to ensure retirement security 
for those retiring after that date. Yet even doing nothing, Social 
Security will pay 75 percent of the benefits then. We must continue to 
discuss the minor modifications that will continue this reliable 
program for all future generations.
  But Social Security, with its guaranteed and fair benefits, does not 
need to be scrapped, particularly for a privatized gambling program 
that would guarantee lifetime ``social insecurity'' for most and short-
term security for the few on Wall Street.
  Mr. Speaker, let us keep the Social Security system.

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