Sunday, May 01, 2005 Battling On Benefits -- May. 09, 2005

Time ended its critique of the Bush social security reform plan by saying that the plan would have been endorsed by Bill Clinton during his presidency. President Clinton passed a number of relatively conservative programs after the republican take over in 1994; he unsuccessfully pushed Congress to pass social security reform.

The Bush plan is a good compromise. Those to the far left and right are not happy but what's new? The Bush plan will very gradually wipe out the funding deficit while keeping the benefits the same for all over 55 and for all who earn less than $25,000. Only those who earn more than $113,000 per year, are excluded from the benefits provided through labor productivity. In other words, those who earn over $113,000 will see their benefits grow at the same rate as the inflation rate. All others, will benefit over time as our industry becomes more efficient.

In addition, all under the age of 25 will have the option to invest some of their retirement in higher yielding securities. Only the foolish will turn down this option as beating the investment returns of the social security plan is as easy as apple pie. The bottom line is that all under the age of 55 will enjoy improved retirement benefits if the plan is passed.
Go GW Go!