WASHINGTON -President Bush appealed to members of Congress to make suggestions of their own for changing Social Security yesterday, and said they need not fear political retribution.
It used to be in the past people would step up and say
'Well here's an interesting idea ' Bush said at a news conference at the White House. Then they would take that idea and clobber the person politically. The president, who has repeatedly called for bipartisanship on the volatile issue, said he won't do that.
What I'm saying to members of Congress is that
`We have a problem
come together and let's fix it
and bring your ideas forward
and I'm willing to discuss them with you.' Bush said in remarks that were quickly rejected by Democratic lawmakers, who say the president's plan would cut benefits. They want him to produce a complete proposal before they do.
He's not going to get us negotiating against ourselves
said Senate Democratic Leader Harry Reid.
The president made his comments as Federal Reserve Chairman Alan Greenspan gave Bush's proposal for private accounts a modest endorsement yesterday.
These accounts properly constructed and managed will create a sense of increased wealth on the part of middle and lower income workers, Greenspan said in an appearance before the House Banking Committee.
Greenspan expressed fresh concerns about the costs of a transition and the impact on financial markets.
His worry: whether increased government borrowing would boost a variety of interest rates from mortgage rates for consumers to borrowing costs for everybody.
The Federal chief acknowledged that the private accounts by themselves don't solve Social Security's long-term financial problems.
Reid delivered his rejection at a news conference where Senate Democrats unveiled a Web site calculator designed to let workers compare their benefits under current law with what they calculated would be available under the president's plan.
The president's been making it seem to people that privatization makes you money. It loses you money
said Sen. Chuck Schumer, D-N.Y.
No one will gain
added Reid.
The president's proposal would allow workers under age 55 to divert a chunk of their Social Security taxes into voluntary, private stock and bond investment accounts. The administration has estimated that transition costs for the next 10 years would be $754 billion.
Critics contend the true costs would be in the trillions of dollars.
Congressional Republicans have floated a variety of ideas since Bush called for personal accounts as part of a broader bill to increase the program's solvency and made Social Security legislation the top item on his legislative agenda, including some that have been at odds with his own suggestions.
House Financial Services Committee Chairman Michael Oxley, R-Ohio, said he hopes Congress will step up to the plate to fix Social Security. There will be some heavy lifting to get the system right
of course
