[Congressional Record (Bound Edition), Volume 145 (1999), Part 7]
[House]
[Page 9174]
[From the U.S. Government Publishing Office, www.gpo.gov]



                 GETTING A BETTER RETURN ON INVESTMENT

  (Mr. SMITH of Michigan asked and was given permission to address the 
House for 1 minute and to revise and extend his remarks and include 
extraneous material.)
  Mr. SMITH of Michigan. Mr. Speaker, just reporting to my colleagues, 
today at our Social Security Task Force meeting, Roger Ibbotson was one 
of the witnesses, and he estimated that the stock market would increase 
to 100,000 by the year 2025. So as we talk about the possibility of 
taking advantage of some of the investment money coming in in Social 
Security taxes and helping to solve the Social Security problem by 
using some of that money for private retirement investment accounts, if 
his estimates are a little bit high or a little bit low, and I would 
recall to our attention that it was Dr. Ibbotson that said in 1974 that 
the stock market would go from 1,000 to 10,000. Of course, that was at 
a time when the stock market was significantly depressed.
  So as we look for real solutions to Social Security, I think it is 
becoming more agreed that part of the effort that we must take is 
getting a better return on the investment that workers of this country 
pay in.
  Doctor Gary Burtless also testified before our Social Security Task 
Force today and agreed that long-term investment rates can enhance 
Social Security.
  Dr. Gary Burtless is a Senior Fellow in Economic Studies with the 
Brooking Institution. Dr. Burtless has published various articles on 
Social Security, Medicare and social welfare, and testified before 
several House and Senate committees. He has published various articles 
and presented testimony.
  Dr. Roger Ibbotson, Professor of finance at Yale School of 
Management, also serves as Chairman of Ibbotson Associates, which 
publishes an annual Yearbook of stock, bonds, treasury bill, and 
inflation rates. He has been recognized as a leading expert in 
measuring rates of return for the past twenty years.
  Our bi-partisan Social Security Task Force meets every week on 
Tuesday at noon. All members are welcome to attend and I will again 
send out a report to, colleagues on todays hearing.

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