A blog focusing on politics in Central Illinois.

Friday, February 18, 2005

A response to Sawyer on Social Security

I had a great little post dedicated to this, then I erased it on accident. C'est la Vie. So here we go again, the other day Gary Sawyer came out in favor of Social Security Privatization, or at least the idea of discussing it. He cited the fact that the rate of return on Social Security is -.08% which means we actually lose money on what we pay in. While I get the inkling this figure is wrong, I just don't feel like searching out the real rate of return again.

He then goes on to say this:
Of course, no one in the Social Security debate is advocating taking all of the Social Security money and putting it in a private account, or stuffing it in a mattress.President Bush has mentioned private accounts of relatively small amounts – 1 to 5 percent of an individual’s contribution.
And this is where I lose Gary, he is either misleading us, or just plain doesn't get the issue. I'm leaning towards he just plain doesn't get the issue. You see here's the problem, when he says only small amounts 1 to 5 percent of an individual's contribution, what he means to say is 1 to 5 percent of an individual's social security tax which is 6.2 percent. And, I would say that taking up to 80.6% of an individuals contribution to set aside in a private account is not a "relatively small amount" Furthermore, since Gary links to the Heritage Foundation, a right wing think tank, to back up his claims that he is losing money, I feel justify in using the Senate Democrat's website to show that under Bush's plan I would be losing money. So here we go folks see for yourself.