NOW Warns Women About Bush's Social Security Scheme
"As he did in the State of the Union speech, George W. Bush misleads the public on Social Security at virtually every turn," said NOW President Kim Gandy. "Women, regardless of age, have the most to lose under Bush's privatization scheme, and they must take the time to understand the fundamental flaws and deceptions in the president's analysis of the system."
"Bush claims that Social Security will be completely 'bankrupt' by the year 2042. This statement is flat-out false and Bush's assertion that private accounts will create a secure retirement has no basis in sound forecasting."
On average, women in the U.S. make less than $30,000 a year. Women earning such low wages will not be able to contribute enough into a private account to purchase an annuity that will sustain them over an expected 20 years of retirement life. In addition, many insurance companies that sell annuities unfairly discriminate against women by charging them more (or paying lower benefits) because they live longer on average than men! And Bush never addresses the fact that Social Security is also a disability insurance and life insurance (survivors' benefits) program, which would be irreparably weakened by draining funds from the insurance pool-and those life-sustaining benefits would be reduced without recourse.
"Women, particularly women of color who earn considerably less over their lifetimes, will be put at great risk by reducing their guaranteed benefits and then subjecting their small investments to market forces," said Gandy. "Under a privatization plan, the
working poor will lose the compensatory increased Social Security benefit paid to lifetime low-income earners and they will lose the guaranteed, inflation-proofed benefit."
Gandy added: "Make no mistake about it, privatization of Social Security will disproportionately hurt women-many of whom are already at a disadvantage because of pay discrimination, time out of the paid workforce to care for families, insufficient or non-
existent pensions and meager savings."
"Women do not need reckless assertions about how Wall Street will do a better job than a system that has provided security to millions over the last 70 years. With only minor adjustments we can improve benefits and address the solvency problem far into the next century. President Bush is playing a costly game of bait and switch in order to divert billions of dollars in fees to investment firms. Women's rights advocates and our allies are determined to stop him."
(National Organization for Women,) February 3, 2005
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Poll Finds Young Adults Reject Privatizing Social Security
From UFCW
A new poll shows that nearly 60 percent of 18-39 year olds oppose private accounts if it would mean “a lower guaranteed benefit in retirement.” Similar to conclusions in previous polls, the more people know about privatization, the less likely they are to support it.
The poll, released by Rock the Vote, AARP and the Joint Center for Political and Economic Studies, reflects the perception found in other polls that many young people doubt they will receive Social Security. But more importantly, the results also show that though many younger adults are initially responsive to the idea of investing their own Social Security money, they no longer support privatization when they learn it means dramatically cutting benefits and increasing the national debt.
Findings of the poll among 18-39 year olds include:
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63 percent would oppose private accounts if it meant “massive new federal debt in order to pay current benefits.” The plan commonly viewed as a “consensus” version from the President’s Social Security Commission, as the press has widely reported, would require $2.2 trillion in new borrowing over just the next ten years (and much more after that).
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70 percent would oppose private accounts if it meant “cuts to your guaranteed benefits would be so severe that you could not make up the difference with money from your private account.” Many plans include a benefit cut that is so severe it will produce a net loss of income, on average, with a massive loss for people whose investments do not work out.
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65 percent would oppose private accounts if it meant “changes in the way Social Security benefits are calculated would result in cuts in guaranteed benefits for everyone not just people who choose to participate in private accounts program.” Again, this is a critically important aspect of most privatization plans that has not received significant attention. While, as the President said in his State of the Union Address, the plans offer “voluntary personal retirement accounts,” the benefit cuts are mandatory for everyone, regardless of whether they choose to invest. For young people whose choice would be to stick with a guaranteed benefit, the plans exact a devastating price—cuts approaching 50% within their lifetimes.
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