There are really only two constituencies that will benefit from Bush’s goal of privatizing Social Security: far-right ideologues, which oppose the existence of the program on philosophical grounds; and Wall Street, which stands to receive a windfall of Americans’ retirement money.
With this in mind, it’s not surprising that financial firms are gearing up for a massive lobbying campaign.
As President Bush prepares to disclose the details of his plan to funnel hundreds of billions of dollars of future Social Security funds into privately held investment accounts, Wall Street has begun a muted lobbying campaign, chastened by bolder forays that failed in years past.
But that’s the catch. Wall Street doesn’t want typical Americans to know that it’s behind the push for privatization, so, just as insurance companies created “Harry and Louise” ads without divulging the HIAA’s financing, financial firms will be cagey about their lobbying role on Social Security.
So far, the chief executives of most financial firms have refused to take a public stand in support of private accounts, wary of being seen as too eager to embrace a potential new revenue stream.
At last week’s White House economic meeting in Washington, they were conspicuous in their absence from the Social Security panel. Even in direct meetings with President Bush, who actively campaigned on the issue of Social Security, executives have shied away.
There are signs, however, that the industry is becoming a little more aggressive in pushing for private accounts, through a loose assemblage of trade associations, business coalitions and conservative research centers. These groups have lately begun trying to raise money from business interests and to marshal support on Capitol Hill, while also seeking to deflect criticism that Wall Street is behind the move simply to reap rich rewards for administering the accounts.
We’re already looking at a major investment.
The Club for Growth, a group financed largely by conservative business leaders that supports like-minded Congressional candidates, has also been active in the drive for privately held Social Security accounts. Members include Richard Gilder of Gilder Gagnon Howe & Company, a private investment firm, and Charles H. Brunie, the founder of Oppenheimer Capital.
The club, which is run by Stephen Moore, who once served as economic adviser to the former House Republican Leader Dick Armey, recently sent out a memorandum to its backers proposing a $15 million public relations and grassroots campaign in favor of private accounts.
But it’ll be a “grassroots campaign” without full disclosure. (In other words, you won’t see a Morgan Stanley exec saying, “I approve this message.”) They’ll probaby create some wholesome name for the initiative such as the “Coalition for Retirement Security,” so people won’t know the sources of the funding.
Something to remember when the ads starting hitting airwaves.