[Congressional Record Volume 151, Number 6 (Wednesday, January 26, 2005)]
[Senate]
[Pages S553-S554]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            SOCIAL SECURITY

  Mr. DORGAN. Mr. President, I wish to make a couple of comments about 
the future of Social Security because the President talked about this 
issue again this morning. This is a big issue. I noticed in a recent 
newspaper article that someone, who philosophically doesn't appear to 
believe in Social Security, said: ``Social Security is the soft 
underbelly of the welfare state.''
  Social Security is a program that was signed into law by Franklin 
Delano Roosevelt in 1930's. It is an insurance program. Money is taken 
from workers' paychecks in the form of something called FICA taxes. The 
``I'' in FICA is insurance, not investment. Social Security is an 
insurance program. It has lifted tens of millions of elderly people out 
of poverty in this country. It has been amazingly successful. It is not 
in crisis. The President did not use that word--``crisis''--today, but 
he has used it the past, and others also have. It is not in crisis.
  We have a responsibility with respect to the Social Security system 
to make some adjustments as we go along. According to the Congressional 
Budget Office, the Social Security system will be fully solvent until 
the year 2052. In the period beyond 2052, if no changes are made, 
Social Security would be able to pay about 80 percent of what we now 
pay in benefits. In fact, people are living longer, healthier, better 
lives as a result of Social Security. Yes, it is successful. People are 
living longer and healthier lives. We can and will and should make some 
adjustments in Social Security, but major surgery is not needed. I do 
not support privatized accounts in the Social Security system.
  With respect to retirement security, we have two things. Social 
Security is the foundation. That is the basic retirement insurance. It 
is the one without risk and that will be there no matter what. Above 
that, we have retirement investments, 401(k)s, IRAs, and other private 
pension programs. I support those as well. I have supported aggressive 
incentives for the American people to invest in the stock market, in 
401(k)s and IRAs and other retirement accounts. That is different than 
Social Security, the basic foundation of retirement security. The 
President suggests we should begin taking apart

[[Page S554]]

the foundation. I do not support that. I do not agree with it. I say 
let us build on the first, second, and third floor of this structure, 
but let us keep the foundation intact.
  Social Security, the social insurance program you pay into during 
your working life and you can expect to get when you retire, has made 
life better for tens of millions of retired elderly Americans. We ought 
not take it apart.
  The President proposes this: He says let us borrow $1 trillion to $3 
trillion and invest that borrowing in the stock market and then have 
faith that somehow that will produce substantial returns and at the 
same time reduce benefits in the Social Security program. He suggests 
that it will all come out just fine. Well, it will not come out just 
fine.
  I point out that the President also told us 4 years ago that we were 
going to have budget surpluses as far as the eye. It didn't turn out 
that way. We went from the largest budget surpluses to the largest 
budget deficits in history. There is not exactly a substantial amount 
of evidence that the economic estimates in the future from this 
administration will be on the mark. In fact, just the opposite is true.
  Our obligation is to understand the basics of retirement security. My 
grandmother, as I have told you before, said you don't borrow for 
retirement, you save for retirement. That is why this notion of 
borrowing $1 trillion to $3 trillion to stick in the stock market 
begins with a premise that doesn't make any sense.
  Incidentally, one other thing: Third-grade math will tell you there 
is no connection here. If, in fact, those who want to privatize a 
portion of Social Security allege that Social Security is in trouble 
because the actuaries estimate average economic growth at only 1.8 
percent per year, then they cannot on the other hand allege that if 
there are private accounts you are going to get a 7-percent return. An 
economy growing at 1.8 percent a year on average cannot produce the 
corporate profits that will rise and increase the stock market to 
produce 7-percent returns on investment over the long term. It doesn't 
work. You have inconsistent arguments for a policy that, in my 
judgment, is not the right policy for our country.

  I welcome the debate. I don't begrudge anyone for taking a position 
that is dramatically different from mine. I just believe that those who 
believe we should privatize a portion of Social Security system are 
just plain wrong.
  I grew up in a town of 300 people. Everybody knew everybody. I knew 
everyone who lived in that town. I knew the people who retired in that 
town and had nothing but their Social Security checks. I wasn't alive 
at a time when those who retired and had nothing didn't have a Social 
Security check, but I know that at that point in time half of those who 
became elderly in this country lived in poverty. Some 50 percent of the 
American elderly lived in poverty. Growing up in my small hometown, I 
knew everybody. I understood who benefitted so substantially from that 
monthly Social Security check and who would have lived in poverty 
without it. This is not about statistics; it is about real people. 
Those are the people who built this country and created this wonderful 
life which we inherited. People say we inherited this wonderful life 
from those who went before us and we owe it to our children. The 
question is, How will we deal with it? How will we treat it? Will we be 
responsible and make the right choices?
  Those who came before us built something that is unique on this 
globe. We share this Earth that circles the Sun with 6 billion 
neighbors. Through the blessings of God, we happened to be born right 
here and are living right now. A lot of people on this Earth can say 
that. There is no place else like this. There is no one on this Earth 
who has what we have. It has been given to us by people who worked hard 
and who understood that part of what we have created in this country is 
to help lift tens of millions of elderly people out of poverty through 
something called Social Security. We ought to be here to expand it, to 
protect it, to nurture it, and to make sure it is available for 100 
years--not take it apart. We are going to have a real debate about 
that.
  Once again, I am not going to be engaged in name calling or be 
pejorative about those who have different opinions. There is room for a 
lot of different opinions. I feel strongly about this, and I welcome 
this debate. This is about values and what our country values. We will 
have a hearing on this subject on Friday. I invite everyone here who 
might wish to attend to be part of it.

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