[A-List] Re Social Security - Bush

[Hudsonmi@xxxxxxx]

Dear Luke,
       I think this should clear up any questions you have on Social Security. Perhaps it should be a "box" or somewhere in the next issue. Anyway, why not show it to Louis for his elucidation.
       Michael


> The President explains the virtues of his Social Security plan, Tampa, FL,
> Feb. 4, 2005
> 
> 
> WOMAN IN AUDIENCE: I don't really understand. How is it the new [Social Security] plan is going to fix that problem?
> 
> Verbatim response:
> 
> PRESIDENT BUSH: Because the -- all which is on the table begins to address
> the big cost drivers. For example, how benefits are calculated, for example,
> is on the table. Whether or not benefits rise based upon wage increases or
> price increases. There's a series of  parts of the formula that are being
> considered. And when you couple that, those different cost drivers,
> affecting those -- changing those with personal accounts, the idea is to get
> what has been promised more likely to be -- or closer delivered to that has
> been promised. Does that make any sense to you? It's kind of muddled. Look,
> there's a series of things that cause the -- like, for example, benefits are
> calculated based upon the increase of wages, as opposed to the increase of
> prices. Some have suggested that we calculate -- the benefits will rise
> based upon inflation, as opposed to wage increases.  There is a reform that
> would help solve the red if that were put into effect. In other words, how
> fast benefits grow, how fast the promised benefits grow, if those -- if that
> growth is affected, it will help on the red.