[Congressional Record (Bound Edition), Volume 151 (2005), Part 1]
[Senate]
[Pages 1110-1111]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            SOCIAL SECURITY

  Mr. DURBIN. Mr. President, another issue that is, of course, timely 
and is brought up on a regular basis is the future of Social Security.
  I believe there is a problem with Social Security. The President has 
said the same. However, I don't believe President Bush's plan to 
privatize Social Security is going to help. I think it is going to make 
the problem even worse.
  Social Security should be strengthened, not weakened. Why isn't 
President Bush's plan the right way to save Social Security?
  First, President Bush's plan would make deep cuts in the benefit paid 
under Social Security and in the process dramatically increase the 
deficit. The President's privatization plan for Social Security diverts 
money from the Social Security trust fund and creates an immediate 
cash-flow problem affecting seniors and those who are retiring right 
now.
  We know that untouched the Social Security Program will pay every 
benefit promised with the cost-of-living adjustment until the year 
2042, at a minimum. Some estimate 2052. For 37 to 47 years, Social 
Security is sound and solvent.
  In comes President Bush who says we need to change Social Security. 
We need to take money out of the Social Security trust fund and allow 
people to create private accounts.
  Private accounts may have some value. But what about the money the 
President just took out of Social Security? Unfortunately, the 
President has not suggested how we would pay back that money to Social 
Security. As a result of the President's proposal, if the Social 
Security trust fund is diminished in size and weakened, unfortunately, 
it will run out of money even sooner than the projection of 2042.
  President Bush's plan to privatize Social Security does not make it 
stronger, it makes it weaker. The President cannot explain how he will 
make up for the money that he takes out of the Social Security trust 
fund. The President's privatization plan will cost up to $2 trillion in 
the first 10 years, and then up to $5 trillion in the second 10 years. 
It is an extremely expensive proposal.
  Where would we come up with the money to make up the difference, $2 
to $5 trillion? The President suggested we add it to the national debt, 
a national debt which has already reached a record level. How do we 
take care of our national debt? Who comes in and loans money to make up 
for a national debt? Mainly foreign governments; No. 1, Japan, China, 
and Korea. The President's proposal to privatize Social Security not 
only weakens Social Security, it creates a greater debt for Americans 
and forces us to be more dependent on foreign governments to loan us 
money. That is the only way we sustain our national debt today. That, 
of course, is a challenge. If those foreign governments, for whatever 
reason, decide not to buy America's debt, we are in a perilous 
position. We will have ourselves a debt and a situation where our 
interest rates will have to go up substantially to attract others to 
buy our debt.
  That is not where America should be. That $2 trillion deficit will 
not bring us any closer to Social Security solvency. In fact, it makes 
the Social Security system that much weaker.
  The President has said over and over his plan to privatize Social 
Security is voluntary. If you do not want to create a private account 
with the President's plan, he says you do not have to. That may be, 
but, understand, when the President takes money out of the Social 
Security trust fund leading to benefit cuts, those benefit cuts are 
going to affect people whether or not they choose to have a private 
account. To say it is voluntary is to overlook the obvious. The cost of 
this privatization plan will affect every Social Security retiree 
whether or not they want to sign up for President Bush's privatization 
plan.
  The President argues Americans will do better in the stock market 
than they would if they wait for Social Security benefits. That is 
possible, but there are risks attached to investment. Every ad on 
television for a mutual fund or investment says the same thing: Past 
performance is no indication of future return. What they are saying is, 
there is risk involved. If you put your life savings, your retirement 
savings, into a private account under President Bush's plan, you may 
come out ahead, but then again you may not.
  Relying on Wall Street is like playing retirement roulette. You may 
guess right, you may come out ahead, but those who are invested in 
mutual funds in the stock market over the last 4 or 5 years know there 
have been probably more losers than winners.
  Keep in mind that under the President's plan, part of all of your 
retirement savings invested are going to be paid to Wall Street 
stockbrokers for so-called administrative fees that can reduce your 
benefits by 25 percent--a windfall for Wall Street at the expense of 
retirees across America.
  Democrats want to encourage and support retirement accounts not at 
the expense of Social Security but in addition to Social Security. We 
should change the Tax Code to encourage people to save, encourage 
people to create individual retirement accounts, 401(k) plans. We can 
do that but not at the expense of Social Security--in addition to 
Social Security.
  Some say private accounts would be more efficient. Keep in mind the 
President's Commission on Social Security came up with the only plan we 
have for private accounts so far, and they would call for a massive new 
Government agency to administer these Social Security private accounts. 
This Government board will control the investment accounts of some 47 
million Americans and administer the program. The private accounts will 
cost the average senior $134,000 in lost Social Security benefits over 
a 20-year period. This is not the great positive thing that has been 
portrayed.
  Young people like to invest money. That is a good thing. Savings and 
investment ought to be encouraged, particularly by young people. We 
need to make certain we do not have savings

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and investment at the expense of retirement benefits that workers have 
paid for over their lifetime. People following this debate every day 
pay into Social Security with the understanding when they retire, this 
is going to be something they can count on. They may not be able to 
live in luxury with Social Security, but it is the nest egg, the 
cornerstone of your retirement income. The idea behind Social Security 
is still a sound idea. We should keep Social Security strong, we should 
strengthen it and do it on a bipartisan basis, but not at the expense 
of cutting benefits. That is what President Bush's privatization plan 
will do in addition to creating $2 trillion in additional debt. That 
does not help Social Security; in fact, it weakens Social Security. 
That should not be our goal.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. THOMAS. I ask unanimous consent that the order for the quorum 
call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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