Here's some wonderful news:
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According to the WSJ, the White House, in a private memo to conservative allies, strongly argues that Social Security benefits paid to future retirees must be significantly reduced. The memo disputes those on the right who insist that creating private investment accounts is all that's needed to fix the retirement system. To fail to make benefit cuts while diverting payroll taxes to workers' personal accounts, the memo argues, would be irresponsible and "have serious short-term economic consequences." The memo, contained in a e-mail from Peter Wehner, President Bush's director of strategic initiatives, was marked "not for attribution." It reflects the White House's behind-the-scenes efforts to avert a split in Republican ranks over the politically charged Social Security issue. The WSJ reviewed a copy of the memo, which wasn't released publicly, and it's unclear how wide a distribution it had. There are indications that it went to legislators and a number of influential conservatives outside Congress. For years, Mr. Bush has emphasized the upside of private accounts, potential investment gains for workers. The memo goes beyond anything the president and his team have said publicly about the pain, as lawmakers call benefit reductions, that would accompany a Social Security fix. "You may know," Mr. Wehner wrote, "that there is a small number of conservatives who prefer to push only for investment accounts and make no effort to adjust benefits." Calling that "a bad idea," he added, "We simply cannot solve the Social Security problem with Personal Retirement Accounts alone. If the goal is permanent solvency and sustainability, as we believe it should be," such accounts "for all their virtues, are insufficient to that task." |
