Gore's Plan For Social Security Is Risky, Say Opponents
July 13, 2000
Former Federal Reserve Governor Lawrence B. Lindsey, an adviser to Gov. George W. Bush's campaign, compares the proposals advanced by Vice President Al Gore and Bush to strengthen the Social Security system, and says Gore's is the risky plan.
Currently, the Social Security system is estimated to have an unfunded liability of $8.8 trillion.
- Gore is proposing to increase benefits -- which would increase the actuarial deficit by 30 percent, according to the Social Security Administration.
- In addition, Gore would launch a program called "Retirement Savings Plus," which involves an annual $1,000 government contribution to the retirement savings accounts of individuals if they match it with $1,000 of their own.
- Bush's plans combine federal income tax cuts with personal retirement savings accounts.
Lindsey argues that many individuals and families of modest income will not be able to take advantage of Gore's plan because they will not be able to come up with the funds to do so. He says this is validated by figures from the Gore campaign which indicate that less than one worker in six will take advantage of his plan.
Source: Lawrence B. Lindsey (American Enterprise Institute), "Gore's Risky Social Security Plan," Wall Street Journal, July 13, 2000.
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