Kerry campaign says Greenspan's warning should be a wake-up call

[Nambe]

SAN FRANCISCO (AP)

Democrat John Kerry's presidential campaign said Friday that Federal Reserve Chairman Alan Greenspan's warning of a looming crisis for Social Security and Medicare should be a wake-up call that President Bush's economic policies have failed.

Kerry spokeswoman Allison Dobson said Bush has driven up deficits that have put Social Security in danger.

"Instead of making tough choices, George Bush squandered the budget surplus on tax breaks for the wealthiest Americans that dug us deep into deficits and cost taxpayers more than three times as much as it would have taken to save Social Security for generations to come," Dobson said as Kerry campaigned for votes and dollars in the Bay Area. ..

Bush campaign spokesman Steve Schmidt said, "John Kerry's campaign of pessimism is intent on talking down our economy and ignores the challenges and progress we have made."

[MikeG]

1. We'll clean up his mess just like the last time.

If we put them in jail they can't get elected.

[The_Casual_Observer]

2. ignores the challenges and progress we have made

Unbridled Offshoring of tech-professional middle class jobs
Record Deficits
More jobs lost than gained
"Service" economy of low wage dead end jobs
Polarization of rich/poor
Inflated housing/ education costs

Yes, we are challenged by your progress chimpy.

[happynewyear]

3. maybe this will be the end of *

we can only hope!!!!

Lots of people, both Democrats & Republicans rely on Social Security and Medicare. Its not like they got these benefits for free. It requires one to pay into them for many years to receive them free and clear so to speak.

OUT THE DOOR IN '04!!!

KERRY/EDWARDS 2004!!!

:dem: :kick:

[gristy]

4. This is a good point which the Kerry camp needs to continue to make

"Instead of making tough choices, George Bush squandered the budget surplus on tax breaks for the wealthiest Americans that dug us deep into deficits and cost taxpayers more than three times as much as it would have taken to save Social Security for generations to come," Dobson said as Kerry campaigned for votes and dollars in the Bay Area...

The article goes on the mention how Bush promotes "partial privatization" of SS, where workers put part of their SS payments in their own retirement accounts. If this takes place, I then have two questions.

Questions:

1. Given that SS has become a pay-as-you-go system, who will then pay benefits to the folks who are already retired?

2. Who takes on the risk and transaction costs of these privately invested retirement accounts held by the workers?

Answers:

1. The workers, through higher taxes (unlikely) or, if the gov't borrows money to pay retired workers, reduced investment, higher interest rates, and less federal support of the states.

2. The workers.

Ah, Corporate America. "It's good to be King", said GWB.

[nothingshocksmeanymore]

5. One more question..given that the goverment uses those funds and issues

bonds....how will we pay for Bush's war on terra minus ONE THIRD of the revenue he depends on? :D

[bain_sidhe]

6. "John Kerry...is intent on talking down our economy"

And, they know how well that works, too, since they did it themselves in 2000.

[Voltaire99]

7. What will the looming fiscal crisis mean for Empire?

Less war? Or, quite possibly, more--driven by the need to force open new markets and get resources on the cheap...

[demoman123]

8. It's good to make this connection.

Has Kerry made any promises to preserve social security benefits?