For Immediate Release
Wednesday, May 02, 2001
AFSCME Blasts Sham Social Security Commission
Says Pro-Privatization Panel Designed to Destroy Popular Retirement Program
Washington, DC —The American Federation of State, County and Municipal Employees, AFL-CIO, denounced President Bush's appointment of a new Social Security commission filled with privatization proponents today as a sham that would place the retirement security of American workers at grave risk.
"By naming some of the most outspoken advocates of privatization to this commission, the President has stacked the deck against Social Security and the livelihood of our nation's retirees," said President Gerald W. McEntee. "It's outrageous to gamble with a system that has served us so well for decades."
Social Security currently provides government-guaranteed retirement benefits to about 45 million people, or nearly one in six Americans. It also offers insurance to disabled workers and their families and the survivors of workers who have died.
The 16 members of the Bush commission overwhelmingly favor at least partial privatization of Social Security, where workers invest some of their contributions in individual Wall Street accounts subject to the ups and downs of the stock market. Wall Street investment firms stand to gain billions of dollars in transaction fees if a privatization plan were adopted.
Moving to private investment accounts would also require massive tax increases, benefit cuts, and a higher retirement age because of the trillions of dollars needed to cover current retirees while creating new accounts for today's workers, according to many economists.
"Instead of rolling the dice on the stock market and giving the wealthy a huge tax payoff, the Administration should focus more sensibly on strengthening Social Security for future generations by using part of the surplus to pay down the national debt," Mr. McEntee said.
