This strategy, initially advocated by presidential candidate George W. Bush, would partially privatize the Social Security system by establishing voluntary personal retirement accounts and enabling workers to earmark a portion of their Social Security tax payments to be invested in the stock market on their behalf.
Here's what Obama vs. McCain stand on Social Security privatization.
- McCain on Social Security Privatization
Figuring out McCain’s position on privatizing Social Security isn’t as easy as you might expect. McCain’s public statements on privatization are often contradictory, appearing to place him firmly on both sides of the issue.
In 2004, McCain said: “Without privatization, I don't see how you can possibly, over time, make sure that young Americans are able to receive Social Security benefits.”In March 2008, McCain told the Wall Street Journal, “I'm totally in favor of personal savings accounts.” When reminded that his website said something different, he said, “as part of Social Security reform, I believe that private savings accounts are a part of it—along the lines of what President Bush proposed.”
By June 2008, McCain was trying to separate himself from President Bush, when he said in a town hall meeting, “But I'm not for quote, privatizing Social Security, I never have been, I never will be.”
According to McCain’s campaign website, “John McCain supports supplementing the current Social Security system with personal accounts—but not as a substitute for addressing benefit promises that cannot be kept.”
When you add it all up, it seems pretty clear that McCain does support privatizing Social Security, but he is dropping the word “privatization” while retaining the concept, and adopting new terminology to avoid looking as though he is recycling policies previously promoted by President Bush.
- Obama on Social Security Privatization
According to his campaign website, “Obama is strongly opposed to privatizing Social Security.”
In a statement issued in response to McCain’s apparent reversal on the privatization issue in June, Obama said: “Well let me be clear: privatizing Social Security was a bad idea when George W. Bush proposed it. It's a bad idea today. It would eventually cut guaranteed benefits by up to 50 percent. It would cost a trillion dollars that we don't have to implement on the front end, permanently elevating our debt."And most of all, it would gamble the retirement plans of millions of Americans on the stock market. That's why I stood up against this plan in the Senate, and that's why I won't stand for it as President.”
