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Skriven 2005-03-02 23:08:00 av Jeff Binkley (1:226/600)
Ärende: Greenspan
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http://biz.yahoo.com/ap/050302/social_security_13.html

Associated Press
Greenspan Prods Congress to Rein Soc. Sec.
Wednesday March 2, 9:45 pm ET 
By David Espo, AP Special Correspondent  
Greenspan Urges Congress to Act on Social Security and Medicare 'Sooner 
Rather Than Later' 


WASHINGTON (AP) -- Federal Reserve Chairman Alan Greenspan prodded 
Congress on Wednesday to curtail the cost of government health and 
retirement benefits promised to baby boomers "sooner rather than later," 
at the same time giving a fresh boost to President Bush's embattled call 
for personal accounts under Social Security.
 
"We owe future retirees as much time as possible to adjust their plans 
for work, saving and retirement spending," Greenspan said, suggesting an 
urgency that dovetails with Bush's call for action this year on Social 
Security before its financial situation worsens.

Still, there were fresh indications of the difficulty confronting Bush 
as he tries to build support in the Republican-controlled Congress for 
remaking the Depression-era program -- including a nationwide poll that 
shows support for his plans dropping as they become better known.

Treasury Secretary John Snow sent concern through the ranks of 
conservative lawmakers when he suggested the president might be willing 
to jettison his proposal to fund personal accounts with payroll taxes 
and accept "add-on" accounts that rely on other sources of revenue.

"Everything's on the table," Snow said in a session with reporters. 
"We've indicated where we are, what is the best solution. I think we're 
going to be able to sell the best solution, ultimately." Other 
Republicans, speaking on condition of anonymity, said they had quickly 
been assured that Bush will insist on using payroll taxes to fund at 
least part of personal accounts.

At the same time, Sen. Charles Grassley of Iowa, who chairs the 
committee with jurisdiction over Social Security, suggested focusing 
attention on the program's overall solvency, rather than the part of the 
president's plan that has sparked the most opposition.

"Since personal accounts don't have a lot to do with solvency -- and I 
support personal accounts -- but maybe we ought to focus on the solvency 
and bring people to the table just over what do you do for the solvency 
for the next 75 years," he said in a radio interview with reporters in 
his home state.

Four months after an election in which they lost the White House as well 
as seats in both houses of Congress, minority Democrats seemed to enjoy 
watching Republicans struggle among themselves.

"I don't think we are ever going to see a White House Social Security 
bill," said Rep. Charles Rangel of New York, senior Democrat on the 
House Ways and Means Committee. "If the president is going around the 
country saying that if you are older than 55, there will be no benefit 
cuts, what they (GOP lawmakers) are hearing back home is that if you are 
55 or younger, you are guaranteed benefit cuts."

Congressional Democrats are virtually unanimous in their opposition to 
Bush's plans, arguing the president wants to cut Social Security 
benefits to pay for privatization. Some Republicans are skittish about 
tackling the issue, as well, fearing the political repercussions of 
making such fundamental changes in a program that benefits 52 million 
Americans.

Greenspan spoke carefully, but his message was unambiguous as he 
appeared before the House Budget Committee: The government can't keep 
all the promises it has made to the post-World War II generation.

"I fear that we may have already committed more physical resources to 
the baby boom generation in its retirement years than our economy has 
the capacity to deliver," he said. "If existing promises need to be 
changed, those changes should be made sooner rather than later."

Greenspan also said that adding personal accounts to Social Security 
would help raise overall savings in the country, a step needed for a 
healthy economy. "The reason is that money allocated to the personal 
accounts would no longer be available to fund other government 
activities," he said.

While Greenspan said Congress should move quickly to consider possible 
benefit cuts for Social Security and Medicare, he urged, as he has 
before, a go-slow approach to setting up Bush's proposed private 
accounts.

A new survey by the Pew Research Center for the People and the Press 
showed support for such accounts tumbling despite an intensive 
nationwide sales campaign by the president. The survey said the idea has 
46 percent backing, down from 54 percent in December and 58 percent in 
September.

At the same time, public awareness of Bush's plans has increased, 
according to the survey, which called into question one of the White 
House's basic political assumptions.

Bush's envisions no change for current retirees or workers age 55 and 
older. Younger Americans could divert a portion of their payroll taxes 
into personal accounts, to be invested in a limited selection of mutual 
funds of varying risk. In exchange, the guaranteed government benefit 
would be cut for these workers when they retire.

Even workers who decline the voluntary accounts would receive a reduced 
government benefit, according to congressional Republican officials who 
have been briefed by administration experts.

Rarely, if ever, does Bush talk about benefit cuts, preferring to stress 
that he wants workers to have the chance to build a nest egg for 
retirement, and saying that without change the Social Security system 
will not be able to deliver promised benefits.

For his part, Snow also said the administration was launching a 60-day 
nationwide blitz to raise the profile of Bush's signature second-term 
domestic issue. He said he, the president and Vice President Dick Cheney 
will be in 29 states over the next two months.

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