Doris Matsui: “Mr. Speaker, the bill the gentleman has is a privatization bill. The gentleman can call it anything he wishes, but it is…”

“Mr. Speaker, the bill the gentleman has is a privatization bill. The gentleman can call it anything he wishes, but it is a privatization bill. Dr. Peter Orszag, a professor at the University of California Berkeley, currently at the Brookings Institute, has studied the gentleman's bill, the DeMint-Armey bill and the three proposals presented by the President through his commission; he said all of them are privatization bills. What the bill of the gentleman from Florida does, it deals with arbitrage. Money is borrowed at 6 percent, and then is lent out at 10 percent. We all know arbitrage is a huge risk, and it could blow up. Once Americans have these privatization accounts, then there is a claw back. When they are ready to retire, they have to give 95 percent of the money that is accumulated to put back into the Social Security Administration. If in fact the arbitrage falls apart, the money will not be there. It is jeopardizing the Social Security system. In addition, it is a private account that is being set up that affects the Social Security benefits. So it is a privatization plan.”