Once again, Bill Clinton
is trying to outdo Congress in protecting Social Security. Two years
ago, he challenged the Congress to save 60 percent of the surplus for
Social Security. In this year’s budget, Clinton is proposing a "Social
Security solvency lock-box" that is intended to secure every dollar of
the Social Security surplus for Social Security. While this plan may
conjure up images of stacks of cash waiting in Fort Knox for the Baby
Boomers to retire, the reality is that his plan leaves the vault empty
when the program begins to run large cash deficits in just 14 years.
There is only one place
to put the Social Security surplus - in the Personal Retirement
Accounts of hard working Americans
Clinton’s lock-box
plan is nothing more than a scheme to use more than $3 trillion in
Social Security surpluses to buy down federal debt. In exchange, the
Social Security trust fund gets another $3 trillion worth of IOUs. To
be sure, most Americans would rather pay down the debt than use Social
Security’s surpluses to fund pork barrel projects. But make no mistake,
once that money is spent – to buy down debt or fund new programs – it
will not be there to cover Social Security’s long-term liabilities.
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