President Calls (Social Security) System Unfair to Blacks
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From The Washington Post (headline is linked)
President Calls Current System Unfair to Blacks
He Points to Life Expectancy
By Michael A. Fletcher
Washington Post Staff Writer
Friday, February 11, 2005; Page A03
As President Bush laid out his second-term agenda to a group of black pastors and community and business leaders at a recent meeting, one of the first subjects he raised was Social Security. Bush called his plan to restructure the program crucial to all Americans -- but none more so than African Americans, who he said are shortchanged by the current system.
"The president said Social Security reform is especially important to the African American community because it is so closely tied to life expectancies," said Michelle D. Bernard, senior vice president of the Independent Women's Forum, who attended the session.
Black Americans' life expectancy is 72.3 years -- more than five years shorter than for whites. Black men die even sooner, living an average of 68.8 years, compared with 75.1 years for white men. It is a disparity Bush has highlighted as he has campaigned for personal retirement accounts.
"If you really think about that, you have people putting money in the system that aren't -- families won't benefit from the system," Bush said last month in an interview with The Washington Post. "And, therefore, it seems to me to make sense, if I were a part of a group of people that were being disadvantaged by the Social Security system, that I'd at least like to have the opportunity to have some of the money I put in the system passable to my family."
It is an argument some have found compelling. They say personal accounts would allow workers who die before they are old enough to collect retirement benefits to leave at least a modest nest egg for their heirs, no small matter for African Africans, one-third of whom have zero or negative net worth. Bush has said that the accounts would be tightly controlled, allowing workers to invest only in a handful of low-risk stock and bond funds.
"Private accounts could be a plus to anyone whose demographics suggest they are in the workforce, they pay contributions but they pass on before they are able to draw down benefits," said Gwendolyn King, a former Social Security commissioner who served on a bipartisan panel that recommended the creation of the accounts during Bush's first term.
Also, supporters say the accounts would expose a generation of low- and middle-income African Americans to the wealth-building power of the stock market. "Anything that gives African Americans more financial freedom with their own money and introduces African Americans as a people to investment in the stock market is good. I don't understand what the objection would be," said Robert L. Johnson, founder and chief executive of Black Entertainment Television, who also served on the panel.
But while proponents portray the accounts as wealth-building tools, others worry that they would weaken the safety net that Social Security has provided since being signed into law by President Franklin D. Roosevelt 70 years ago. "This move on Social Security is really an attack on Roosevelt," Jesse L. Jackson said. "It reflects the extreme right-wing ideology that says there should be no roof for the wealthy and no floor for the poor."
Critics such as Maya Rockeymoore, vice president of the Congressional Black Caucus Foundation, say that the promised benefits of individual accounts could prove illusory for many blacks. For one, the accounts would be subject to the whims of the stock market. "Any financial planner will tell you that retirement should rest on a three-legged stool: pensions, savings and Social Security," she said. "The only secure leg of that stool is Social Security. But if you move to private accounts and something happens to the stock market, you have a collapsed retirement stool."
... more at linked article
This article was a companion peace to a story noting that Pres. Bush is upping the pressure on Congress to get something done about Social Security by continuing to court the public and congress on his plans.
It doesn't surprise me that stooges like Jesse Jackson or the leaders of the Congressional Black caucus would continue to be against Bush's plan, as it would take away control of the purse strings from Congress and give it back to the people.
I applaud Robert Johnson, founder of BET, for being somewhat on board with this plan.
As noted, enacting Bush's proposal would potentially involve a large minority population in the market for their first time ever. They may in turn become more educated about financial affairs, as they would hopefully seek out the best returns for their investments. Additionally, by virtue of the "ownership" aspect of these private accounts, families would be able to grow their wealth and offer their relatives investments and money that would help break the cycle of poverty for many.
I defy those who really read this article, and understand what Bush has proposed to really argue for why Bush's plan is not exactly what citizens in this country deserve.
President Calls Current System Unfair to Blacks
He Points to Life Expectancy
By Michael A. Fletcher
Washington Post Staff Writer
Friday, February 11, 2005; Page A03
As President Bush laid out his second-term agenda to a group of black pastors and community and business leaders at a recent meeting, one of the first subjects he raised was Social Security. Bush called his plan to restructure the program crucial to all Americans -- but none more so than African Americans, who he said are shortchanged by the current system.
"The president said Social Security reform is especially important to the African American community because it is so closely tied to life expectancies," said Michelle D. Bernard, senior vice president of the Independent Women's Forum, who attended the session.
Black Americans' life expectancy is 72.3 years -- more than five years shorter than for whites. Black men die even sooner, living an average of 68.8 years, compared with 75.1 years for white men. It is a disparity Bush has highlighted as he has campaigned for personal retirement accounts.
"If you really think about that, you have people putting money in the system that aren't -- families won't benefit from the system," Bush said last month in an interview with The Washington Post. "And, therefore, it seems to me to make sense, if I were a part of a group of people that were being disadvantaged by the Social Security system, that I'd at least like to have the opportunity to have some of the money I put in the system passable to my family."
It is an argument some have found compelling. They say personal accounts would allow workers who die before they are old enough to collect retirement benefits to leave at least a modest nest egg for their heirs, no small matter for African Africans, one-third of whom have zero or negative net worth. Bush has said that the accounts would be tightly controlled, allowing workers to invest only in a handful of low-risk stock and bond funds.
"Private accounts could be a plus to anyone whose demographics suggest they are in the workforce, they pay contributions but they pass on before they are able to draw down benefits," said Gwendolyn King, a former Social Security commissioner who served on a bipartisan panel that recommended the creation of the accounts during Bush's first term.
Also, supporters say the accounts would expose a generation of low- and middle-income African Americans to the wealth-building power of the stock market. "Anything that gives African Americans more financial freedom with their own money and introduces African Americans as a people to investment in the stock market is good. I don't understand what the objection would be," said Robert L. Johnson, founder and chief executive of Black Entertainment Television, who also served on the panel.
But while proponents portray the accounts as wealth-building tools, others worry that they would weaken the safety net that Social Security has provided since being signed into law by President Franklin D. Roosevelt 70 years ago. "This move on Social Security is really an attack on Roosevelt," Jesse L. Jackson said. "It reflects the extreme right-wing ideology that says there should be no roof for the wealthy and no floor for the poor."
Critics such as Maya Rockeymoore, vice president of the Congressional Black Caucus Foundation, say that the promised benefits of individual accounts could prove illusory for many blacks. For one, the accounts would be subject to the whims of the stock market. "Any financial planner will tell you that retirement should rest on a three-legged stool: pensions, savings and Social Security," she said. "The only secure leg of that stool is Social Security. But if you move to private accounts and something happens to the stock market, you have a collapsed retirement stool."
... more at linked article
This article was a companion peace to a story noting that Pres. Bush is upping the pressure on Congress to get something done about Social Security by continuing to court the public and congress on his plans.
It doesn't surprise me that stooges like Jesse Jackson or the leaders of the Congressional Black caucus would continue to be against Bush's plan, as it would take away control of the purse strings from Congress and give it back to the people.
I applaud Robert Johnson, founder of BET, for being somewhat on board with this plan.
As noted, enacting Bush's proposal would potentially involve a large minority population in the market for their first time ever. They may in turn become more educated about financial affairs, as they would hopefully seek out the best returns for their investments. Additionally, by virtue of the "ownership" aspect of these private accounts, families would be able to grow their wealth and offer their relatives investments and money that would help break the cycle of poverty for many.
I defy those who really read this article, and understand what Bush has proposed to really argue for why Bush's plan is not exactly what citizens in this country deserve.