[Congressional Record Volume 151, Number 13 (Wednesday, February 9, 2005)]
[House]
[Page H485]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CONSIDERING ALL PLANS FOR SAVING SOCIAL SECURITY
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Georgia (Mr. Kingston) is recognized for 5 minutes.
Mr. KINGSTON. Mr. Speaker, I wanted to speak tonight about Social
Security and some of the debate that is going on. I want to thank the
gentleman from Oregon for putting forth a proposal, because I think it
is important for Democrats to put forth proposals, because it seems
like a number of Members of Congress are still in denial that there is
a problem, and they kind of argue a little bit about nomenclature. They
might say, well, it is a problem, but it is not a crisis. It is kind of
like this: if my house is on fire, it is a crisis, but if I have
termites eating away at the foundation, that is a problem. Either way,
you have to address it.
I appreciate President Bush for somewhat following in President
Clinton's footsteps and saying we have to address this. President
Clinton actually did say that the Social Security situation was a
crisis. I do not want to get bogged down in that.
Here is what we know. In the year 2018, because of so many baby
boomers retiring, more money will be going out of the system than is
coming in. Real simple. In the year 2042, everybody seems to be
agreeing that by then we will have exhausted whatever money is in there
and, if we want to continue the Social Security program, we have to
reduce the benefits by 27 percent.
Now, what the President has said is that if you take that 12.4
percent and you take 2 percent of it and put it into a personal
investment account similar to the Thrift Savings Account that most
Members of Congress have, and I know there are a lot of Democrats,
probably all the Democrats have it, I know probably all the Republicans
have it, but if you let people have plans like that, that it would out-
perform their Social Security.
The President is saying, we do not want to increase taxes, we do not
want to cut benefits, we certainly do not want to endanger survivor
benefits or benefits for children. There has been a suggestion by the
previous speaker that those would be in jeopardy. That is not the case
at all.
But here is what my staff was able to get me today on what that
government, the Thrift Savings Account which so many Members of
Congress and most members of the Federal employment have. You go in
there and you select a certain amount of investments. You can choose
between A, B, C, or D. But in the G fund, for example, the last 10
years, it has earned on average 6 percent. The C fund, it has earned on
average over the last 10 years, 11 percent. The F fund, which is a
fixed income investment, 6.9 percent over the last 10 years. And the S
fund, which is a relatively newer fund, it has earned about 5.3 percent
since 2001. There is also a newer ``I'' fund, but it has only been up
for 2 years.
Now, how can we as a society say to a 25-year-old just entering the
workplace that for the next 40 years, you have to work and receive on
your Social Security benefits about 2 percent, when you could have what
your Member of Congress has: a fund where you choose anywhere from a
return of 5 percent to 11 percent, or more. And these are 10-year
averages, and if you look at the lifetime of the stock market versus
the lifetime of Social Security return, certainly you would be making
more money.
But why is the President doing this? He is doing this because the
Social Security program was started in 1935. At that time there were 60
workers to every one retiree. In the 1950s, there were 16 workers to
every retiree. And today, there are three workers per retiree, and soon
it will be down to two workers per retiree. And that is why we have to
take advantage of some of the new products that are out there in the
financial investment world. A lot of people say, well, why do we change
this program? Again, we change it because that worker-to-retiree ratio
has changed so much.
Now, I have a dad who is 87 years old, a mom who is 80 years old, my
wife, her parents are both alive. They all get Social Security, and
they depend on Social Security. What I am reassured by is that for
them, retirees and near retirees, people aged 55 and up, there is going
to be no change. For the people who are younger than them, it is a
voluntary program.
But when I go on college campuses, as I did last week in St. Mary's,
Georgia, to Coastal Georgia Community University, I say to them, how
many of you think Social Security will be there for you, and zero hands
go up. I say, wait a minute, there are survivor benefits, spouse
benefits, other options that are out there, other ways to get Social
Security money and still, they all say, it is not going to be there for
us.
We owe it to the next generation to protect and preserve Social
Security and do something today. Every year that we postpone it, it is
another $600 billion deeper in the hole. We have to address this.
I want to close with this, Mr. Speaker. I know I am out of time. I
know again my friend from Oregon says he has a proposal; we need to
look at it. We need to look at all of the proposals, Democrats,
Republicans and Independents, and together we need to come together for
what is in the best interests of all generations of America.
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