Retirement News : Seniors : Seniors, unions have their say

Seniors, unions have their say

Date Added: 27-04-2005

First off, the future of Social Security is a problem, not the crisis the president would have you believe, U.S. Rep. Jim Oberstar said at a forum in Duluth Monday evening.

More importantly, the solutions should involve restrained measures like economic rejuvenation, a balanced budget and eliminating President Bush's tax cut -- not privatization in a risky stock market, Oberstar said.

"Social Security, in a word, protects against risk," the Democrat from Chisholm said before about 130 people at Weber Music Hall at the University of Minnesota Duluth.

Oberstar hosted the forum to seek suggestions from the public on how to meet the challenge of keeping Social Security solvent for future generations, he said.

It also was a response to Bush's recent nationwide tour promoting his proposed changes in the Social Security system. Before the event, Oberstar's people needled the president's "60 days in 60 cities" tour by saying that, unlike Bush's, everyone was invited to participate in Duluth.

The congressman had a friendly crowd, too, well-represented by members of AARP and organized labor, who both oppose Bush's plan.

Bush wants to allow workers to place some of their Social Security withholdings into private stock market accounts. Congress has yet to act on his proposal, and Democrats, including Oberstar, are poised to oppose it.

Government accountants say the system will begin running in the red within two decades. Bush has said change is necessary and should come immediately.

While in 1950 there were 16 workers for every Social Security recipient, the ratio now has dwindled to 3.3 to 1. The White House predicts that by 2027, the government will have to come up with another $200 billion a year to keep the system afloat.

But Oberstar accused the president of using scare tactics. He said the president made his predictions based on false information and a pessimistic long-term economic outlook.

Panelist Craig Grau, a UMD political science professor, said no one really knows how many people will be born in the future to contribute Social Security taxes to baby boomers. Already, more babies were born in the current 30-year-cycle than anybody anticipated, he said.

"The real crisis is in health care," Grau said to applause.

Opponents say the real issue is that taking money out of the system will bankrupt Social Security sooner and jeopardize some senior citizens' retirements if their private accounts fail.

Oberstar cautioned that the stock market has crashed before, and it can happen again.

"Don't spoil it," cautioned Vi Bloom, a retiree from Duluth and forum panelist. "It's worked for us, and I'd like to see it work for everyone else."

Panelist Charlie Wittwer, an activist who is partially paralyzed, said Bush's plan also doesn't address how it would benefit the millions of others who use Social Security, such as the disabled, widows and surviving children.

When Oberstar asked for advice, audience member Bob Jones, a retired U.S. Steelworker, said he wants the payroll-tax cap removed for the wealthy.

Other suggestions included paying down the country's long-term debts and sealing off the Social Security trust fund as a source to pay off deficits.

For More Information:

http://www.duluthsuperior.com/mld/duluthsuperior/news/local/11490972.htm