Social Security's battle over values

The coming Washington struggle over President Bush's plan to partially privatize Social Security promises to be particularly intense, because it revolves around a core issue of politics: the values the federal government should espouse.

The economics of retirement security will be a major factor in the debate, of course, as will the usual Democratic-Republican partisan divide. The overall outlook for the federal budget (lots of red ink) could prove crucial in lawmakers' consideration.

But opponents of private retirement accounts generally see them as a threat to the collective protection offered by a big government program. Proponents judge them as an encouragement to individualism, and a reduction in Washington's power.

That's why full-page ads hitting the plan are already running in big newspapers, and why Mr. Bush is promoting the idea around the country before legislation hits the House or Senate floor. The debate is not just about the solvency of the Social Security trust fund half a century hence. It is also about what the largest and most popular US program is for. "For us, it's never been about solvency. We've always believed it was more important to give workers control [over their own money]," says Michael Tanner of the Cato Institute, a Washington think tank.

This week will see a concerted push by the administration on Social Security partial privatization, with the White House orchestrating a series of speeches and official appearances arranged about the subject. Bush himself hosted a discussion of the idea on Tuesday. Vice President Dick Cheney and Treasury Secretary John Snow are scheduled to speak on Thursday. Budget director Josh Bolton will talk about the implications of borrowing $1 trillion or more to fund the overhaul before the US Chamber of Commerce on Friday.

"Each of the speeches will focus on a critical aspect of Social Security and the need for strengthening it for future generations," White House spokesman Scott McClellan said Tuesday.

Current official estimates hold that Social Security will begin paying out more in benefits than it collects in revenue in 2018. As currently designed, the system will be able to pay full benefits until 2042, according to a middle-ground Social Security Administration estimate.

Critics charge that the administration is exaggerating the extent of the program's problems in an effort to pass partial privatization. The administration, for its part, says that its opponents are simply trying to frighten seniors. Bush has said that current retirees and those nearing retirement will not be touched under his Social Security overhaul. "The issue really is about younger workers, and most younger workers believe they're not going to see a dime unless something is done," said Bush in an interview in the Wall Street Journal on Tuesday.

The administration has not issued a detailed plan. In general, the White House wants younger workers to be allowed to divert some portion of their Social Security taxes into private accounts that they can invest in stocks, or bonds, or however they see fit.

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