The White House hosted a gathering of Senate Republicans yesterday, and apparently, a couple of lawmakers told the president that they’re moving forward with their own proposals on Social Security — one of which does not include private accounts.
Because the president told lawmakers to proceed with their plans, the AP suggested that there’s been some kind of breakthrough and that Bush is now willing to accept a plan that falls short of privatization. The AP, however, is wrong and the White House position has not changed.
Nevertheless, the Wall Street Journal’s Jackie Calmes had a good piece today on the politics behind the new, competing proposals and fleshed out in more detail how Bush is proceeding with the broader debate.
To break Congress’s impasse on his promise to revamp Social Security, President Bush is encouraging conflicting plans from two Republican senators: One would only make the program solvent through future benefit reductions, and another would only create personal retirement accounts for workers.
At a rare White House luncheon with Republican senators yesterday on a range of subjects, Mr. Bush reiterated his commitment to the twin goals of Social Security solvency and new private accounts, senators said. But with his party divided on the issue — and politically fretful amid Democratic opposition — the president is seizing on proposals that fall short of his own aims just to keep his top domestic priority alive in the Republican-led Senate and House.
Utah Sen. Bob Bennett (R) has a plan whereby the system would use “progressive indexing” to reduce retirees’ benefits. South Carolina Sen. Jim DeMint (R), meanwhile, redirects the system’s trust fund — which Republicans have said for months does not exist — into creating private accounts.
But here’s the kicker from the WSJ Calmes:
Bush aides acknowledge that many Republicans in Congress privately view the DeMint bill not as a way to revive the issue, but as “an exit strategy” — believing it can’t pass, but will allow them to put Social Security behind them without having to vote to cut benefits.
Sounds like they’re poised to give up. When Republican leaders are prepared to accept a bad bill they know will lose just to get the darn thing over with, we’re that much closer to seeing them accept defeat on privatization.