[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[House]
[Page 4058]
[From the U.S. Government Publishing Office, www.gpo.gov]




           MISCONCEPTIONS ON KEEPING SOCIAL SECURITY SOLVENT

  (Mr. SMITH of Michigan asked and was given permission to address the 
House for 1 minute and to revise and extend his remarks.)
  Mr. SMITH of Michigan. Mr. Speaker, I want to comment on Social 
Security and two misconceptions that minimize the seriousness of 
keeping Social Security solvent coming from the White House and from 
some of the status quo'ers.
  One is the suggestion that if we have a strong growing economy that 
somehow that economic expansion will save Social Security. Let me just 
point out that because Social Security benefits are indexed to wage 
inflation, benefits go up faster than inflation. Under the current law 
a growing expanding economy, regardless of how dramatic, does not solve 
Social Security. Benefits will continue to be about 36% of income.
  The other claim is that if we invest some of the surplus in the 
capital markets, such as 62 percent, suggested by the President, 
somehow that investment will save Social Security. Just a quick 
statistic. If we were to invest the whole trillion dollars that we 
expect in surplus over the next 5 years into an account drawing 10.5 
percent interest, it would only keep Social Security solvent for 
another 11 years.
  Saving Social Security is a serious challenge. Let us face up to it.

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