John Spratt: “Privatization means that tax funds that are now put in a public trust fund will instead go into private accounts that…”

“Privatization means that tax funds that are now put in a public trust fund will instead go into private accounts that will cause the government to borrow more and more and more over time. The Bush administration acknowledges that between 2009 and 2015, when it first implements this particular proposal, that the cost will be $754 billion. We have obtained, using the Social Security actuary numbers, the true impact for the first 10 years of implementation and for the second 10 years of implementation, fully implemented. The plan that the President is proposing adds $4.9 trillion to the unified deficit of the United States by 2028. But we are only halfway up the slope at this point. The borrowing in the trillions goes on and on and on until the year 2055 to the mid-2050s, an enormous increase in the national debt. So even if the budget were to be cut in half, the deficit were to be cut in half by 2009, which it will not, the numbers simply will not support that outcome.”