Political Quotes

“I want to comment on Social Security and two misconceptions that minimize the seriousness of keeping Social Security solvent coming from the White House and from some of the status quo'ers. One is the suggestion that if we have a strong growing economy that somehow that economic expansion will save Social Security. Let me just point out that because Social Security benefits are indexed to wage inflation, benefits go up faster than inflation. Under the current law a growing expanding economy, regardless of how dramatic, does not solve Social Security. Benefits will continue to be about 36% of income. The other claim is that if we invest some of the surplus in the capital markets, such as 62 percent, suggested by the President, somehow that investment will save Social Security. Just a quick statistic. If we were to invest the whole trillion dollars that we expect in surplus over the next 5 years into an account drawing 10.5 percent interest, it would only keep Social Security solvent for another 11 years. Saving Social Security is a serious challenge. Let us face up to it.”