Bush’s plan would allow younger workers to open private investment accounts, which Bush said would ease the burden on Social Security because those workers would receive smaller checks from the Social Security fund when they retire.
To pay for setting up Bush’s partial privatization plan, the government would have to borrow up to $2 trillion dollars to replace payroll taxes that would be diverted into private accounts. The $2 trillion is an addition to the current budget deficit of more than $7.6 trillion dollars, which increases daily. It is estimated that the national debt increases an average of $2.56 billion every day.
Bush has avoided discussing specific steps he would take to fix Social Security’s long-term problems, including suggestions made by the non-partisan Board of Trustees of the Social Security Trust Funds. For more information on the Trustees report, see Will Social Security be Solvent When You Want to Retire?.
Democratic members of Congress have said they support taking steps to make Social Security solvent, and they have criticized Bush for giving citizens the impression that his partial privatization plan is a complete solution to the problems that Social Security faces, and promoting his plan without explaining how he plans to pay for it. For answers to common questions about the current and future status of Social Security, including examples, see Social Security Benefits: Frequently Asked Questions.
A study criticizes the Bush Social Security plan, along with AARP. For details, see Study Criticizes Bush Plan for Social Security Privatization.
