Wednesday, March 16, 2005
Copyright © Las Vegas Review-Journal

Bush warns opponents of reform

WASHINGTON -- President Bush on Tuesday warned opponents of Social Security reform they will pay a political price if they defeat his plan without offering recommendations of their own.

"By standing in the way and saying, 'Well, let's defeat Bush,' they're basically saying let's not solve the problem for younger workers, and the younger workers are a heckuva lot more important than me," Bush said.

In a 30-minute interview in the Oval Office with the Review-Journal and reporters and a columnist from five other newspapers, the president said he will not abandon his plan to restructure Social Security by creating private investment accounts

"I think they've got to be on the table," Bush said. "How else can you make sure that the younger worker gets closest to that which the government has promised?"

Personal accounts will provide a higher rate of return for workers than the current Social Security system, Bush said.

For example, a young worker earning $35,000 a year could build a nest egg of $250,000 if allowed to set aside 4 percent of income each year that is subject to payroll taxes, the president said. That amount could supplement any retirement benefits paid by the government.

Private accounts also would allow workers to bequeath their savings to a spouse or anyone else they wish, Bush said.

Senate Democratic Leader Harry Reid of Nevada said Bush should withdraw his support for private accounts and focus instead on the long-term solvency of Social Security.

"His Social Security plan is going down and down and down with less (polling) numbers," Reid said. "The American people are on our side, and this is bipartisan. Private accounts don't strengthen Social Security; they dismantle it."

Bush said he likes Reid, describing him as "a smart guy and a very capable leader."

But without mentioning Reid by name, Bush said there will be a political consequence for members of the House and Senate who do not want to participate in reforming Social Security.

"The American people expect us to work together," Bush said. "It's easy to tear somebody else's idea down. What's hard is to bring your own up."

Bush downplayed a new Washington Post-ABC News poll showing support for his Social Security plan has slipped to 35 percent.

"If I paid attention to surveys, I wouldn't do anything," Bush said.

"That particular survey you talked about showed a significant number of people favored the idea of personal accounts, and most people in the survey said there is a serious problem (with Social Security)."

Convincing people that Social Security faces a significant problem is the first part of his two-prong strategy, Bush said.

The other part is reassuring senior citizens they will continue receiving their checks without a cut in benefits.

Bush said he already has visited 15 states. He plans to tour Florida this week and New Mexico, Colorado and Arizona in the near future.

Asked when he plans to visit Las Vegas, Bush closed his right hand, shook it and threw it open as if rolling a pair of dice. A White House spokesman said Las Vegas in not yet on the president's itinerary.

"A lot of people wondered how serious I was on this issue," Bush said. "You know, there was some initial concern that I was just going to lay it out there in the State of the Union (address), and then blame Congress for not getting it done. And they now realize that I'm very serious about this."

Personal accounts for Social Security fit into his vision of an ownership society for America, Bush said.

He denied he is trying to destroy Social Security, and praised President Franklin Roosevelt for creating it.

"It's a very important social safety net," Bush said. "No question it worked for a lot of seniors, and I want it to work for another generation."

Critics have described Bush's plan as a privatization of the system. Bush said "privatization is a trick word, and (they're) basically trying to scare people."

The Social Security debate is in its early stages, the president said, and he predicted both sides will eventually negotiate an agreement on reforms.

"I'm optimistic we'll get something done," Bush said.