[Congressional Record Volume 144, Number 111 (Friday, August 7, 1998)]
[Extensions of Remarks]
[Page E1601]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 SOCIAL SECURITY REFORM: AMERICANS SKEPTICAL ABOUT PRIVATE INDIVIDUAL 
                                ACCOUNTS

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                          HON. RICHARD E. NEAL

                            of Massachusetts

                    in the house of representatives

                        Thursday, August 6, 1998

  Mr. NEAL of Massachusetts. Mr. Speaker, during the past year the 
President has engaged Americans in a dialogue about the reform of 
Social Security. This dialog is a precursor to the President and 
Congress addressing Social Security reform next year.
  Last week, President Clinton participated in dialog in Albuquerque, 
NM, and he outlined five fundamental principles with are essential to 
Social Security reform. These principles are: universality and 
fairness, provide a benefit people can count on, continue to protect 
the disabled and low-income beneficiaries, fiscally disciplined 
approach, and strengthen and protect the guarantee.
  Social Security was created as part of the New Deal and it benefits 
44 million elderly and disabled Americans. The system needs to be 
reformed, but there should not be a shift away from its fundamental 
principles. Without making changes, the system will be insolvent by 
2032.
  Many of us in Congress differ on how to fix Social Security. Even a 
commission assigned with the task of reforming Social Security could 
not reach a unanimous consensus and instead, reported out three very 
different solutions. The concept of allowing individuals to place a 
portion of their payroll tax in a private account has been suggested 
and serious deliberation needs to occur to understand the consequences 
such a change would have on the guarantee of the benefit provided by 
the system.
  On July 25, the National Committee to Preserve Social Security and 
Medicare released a study which was conducted by Peter Hart Research 
Associates which surveyed a sample of 1,094 adults and 326 of these 
individuals were aged 18-34. The survey focused on Social Security and 
proposals to reform the system which included private accounts. The 
crux of the survey was Generation Xer's want the Social Security system 
fixed but oppose tax increases, benefit cuts, and a higher retirement 
age.
  Generation Xer's share the same sentiment as their parents and 
grandparents in agreeing that ``Congress should fix Social Security by 
strengthening its financial condition, so that future retirees will be 
guaranteed a reasonable level of benefits.'' Many believe that younger 
Americans would like Social Security privatized and invested in 
individual accounts. This study showed that most Americans including 
younger Americans want the system fixed and do not think privatization 
is the answer.
  Of all the adults surveyed, 73 percent believe the Social Security 
system can work for young people when they retire if Congress will 
strengthen the system's finance and 69 percent of the adults surveyed 
that were between 18 and 34 years old agree. The survey inquired about 
private accounts and only 39 percent of those surveyed between 18 and 
34 years of age supported allowing individuals to invest their Social 
Security contributions in the stock market, so that people can manage 
their accounts. Only 32 percent of all individuals surveyed support 
private accounts.
  This survey helps us realize that Americans are concerned about 
Social Security, but they do not want the guarantee that is the 
fundamental principle of Social Security changed. Social Security has 
become a safety net for retirement for all American workers and we 
should not take action to weaken this safety net. We should consider 
all aspects of the Social Security system as we moved forward with the 
debate on reform.

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