No way out

Dems won’t let Bush privatize Social Security with private accounts carved out of the system, but let’s also not forget that Republicans won’t let Bush compromise by accepting add-on accounts.

Two prominent House conservatives sent President Bush a letter Friday warning him against advocating “add on” personal retirement accounts as part of a Social Security overhaul after an administration official suggested Bush might be open to a compromise.

Republican Policy Committee Chairman John Shadegg (R-Ariz.) and Republican Study Committee Chairman Mike Pence (R-Ind.) sent the letter after National Economic Council Director Al Hubbard told USA Today in an article last Friday that the administration would be “willing to discuss” add-on accounts as a reform option.

[…]

“We strongly support your view that all reasonable proposals should be open for discussion,” the letter states. “However, add-on accounts do not solve the problem of solvency or generational fairness facing Social Security. We urge you to continue to pursue personal carve-out accounts as the long run solution for Social Security’s actuarial shortcomings.”

Shadegg and Pence were just getting the ball rolling. The Hill reported that a number of other House Republicans have plans to send the White House their own letters, letting the president know that add-on accounts are unacceptable.

There’s a reason this has been labeled the “third rail.”

How can they even say with a straight face that they think private accounts solves the long term financial problems in social security? I lost $25,000 in the last three weeks in the mutual fund’s. Don’t put peoples social security in the stock market!

  • They’re having trouble with other House members:

    AP (04.18.05):

    “Rep. Gil Gutknecht, R-Minn., said during an editorial board meeting with the (Rochester) Post-Bulletin that Bush must overcome a ‘credibility problem’ to revamp Social Security.

    The congressman said many people think the president underestimated the cost of the Iraqi war, then overestimated the benefits of Medicare’s prescription drug plan.

    ‘And now, all the sudden, they wonder why people are a bit skeptical of their … plan on Social Security,’ he said. ‘It’s partly a credibility problem.’

    Gutknecht also rejected the Bush contention that Social Security is in ‘crisis.’

    ‘If I use the word ‘bankrupt,’ you know, kick me, because I don’t think that’s a fair term to say about Social Security,’ the congressman told the newspaper. ‘It is not in crisis today. I don’t use the word ‘crisis.””

    Bush Pitches Social Security Proposal in Republican State as He Still Faces Resistance

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