30-Something Working Group
Mr. Speaker, it is once again a pleasure to address the House of Representatives and also to talk about a very important issue to all Americans, which is Social Security. I would also like to thank the Democratic leader for allowing the…
Mr. Speaker, it is once again a pleasure to address the House of Representatives and also to talk about a very important issue to all Americans, which is Social Security. I would also like to thank the Democratic leader for allowing the 30-something Working Group to come to the floor once again to talk about issues that are facing not only young Americans but Americans in general.
Through her leadership and through others that are in the Democratic Caucus, the Democratic whip, the gentleman from Maryland (Mr. Hoyer); the chairman, the gentleman from New Jersey (Mr. Menendez); and also the vice chairman, the gentleman from South Carolina (Mr. Clyburn), we have been able to come to the floor to share facts, not fiction, to bring accuracy to the Social Security debate as it stands now.
First of all, Mr. Speaker, I would like to just share a few things as relates to Social Security. We encourage the Members to continue to keep an open mind. First of all, I want to commend Members on the Democratic side of the aisle for having so many town hall meetings, a number of town hall meetings, hundreds of town hall meetings in their own districts and that have traveled outside of their districts to share with Americans the truth about Social Security and how we protect Social Security and how we continue to have the benefit structure that so many, 48 million Americans, are celebrating now today.
I must also add that I would like to commend some of my Republican colleagues that have the courage to stand up to the forces of leadership, to say that they are willing to make sure that their constituents are able to celebrate and to be able to survive in a program that they have been promised that will be there for them in their time of retirement.
I would also like to thank those Members on both sides of the aisle who see the benefit of protecting Social Security, not coming up with a privatization scheme, not because someone said it is a way that we can be innovative, not subscribing to saying that there is some sort of Federal emergency as it relates to the protection of Social Security, not the fact that the President is flying around the country some 60 days burning Federal jet fuel at taxpayers' expense, higher than at any other time in the history of this country since Presidents have been flying, to persuade Americans that there is some Federal emergency. We will try to address that a little later. We are going to celebrate not only within the moment but within the future.
I want to just share a few things, Mr. Speaker, as it relates to how many Americans that are not only beneficiaries of Social Security but also Americans who look forward to benefiting from Social Security.
Social Security is the foundation of all retirement for the American worker. Like I mentioned earlier, 48 million Americans celebrate and take part in the benefits that Social Security has to provide. Retirees receiving Social Security benefits are 33 million. That is a great number of Americans that have served our country well. Seniors who live within the poverty line, 48 percent of those individuals, of the 48 million, receive those benefits. The average monthly benefit is $955. That is making ends meet for so many Americans, some 48 million Americans.
The size of the average benefit, like I mentioned, is $955; but the real issue is the fact that the benefits will be there for almost 50 years. Some may say 48, some may say 49, but for almost 50 years, the present benefit structure as we see it now for Social Security recipients, including those individuals that are receiving survivor benefits that I must add, Mr. Speaker, those survivor benefits is the legacy of the commitment that their parents made that have passed on, that have gone on to glory. The only thing that they were able to leave for their child are survivor benefits. And the benefits will be here until 2052; 2052, Mr. Speaker. That is not tomorrow. That is not next week. That is not even 2 years. 2052.
And so many of the individuals that are running around here saying that we need to call the fire department because Social Security is on fire are not really telling the truth. One may say that the administration has a plan or the majority side leadership has a plan for Social Security. That is also not true. One may say that the President, like I said, the administration, has a plan. That is not true. Is there posturing on the majority side about the fact that they are going to come up with a plan? Yes, there is some conversation going on, but Washington is known for conversation. There is nothing wrong with conversation as long as it is bipartisan. And that is not happening. Leadership is about a bipartisan dialogue to improve Social Security. So if it is going to be addressed in this Congress, for us to move in a productive way, we are going to have to work together. And there is no leadership from the majority side for us to work together.
Some may say, well, where is the Democratic plan? Well, I think the Democratic plan is celebrated by 48 million Americans today, not fiction, not something that may happen in the future; and in the 1980s it was a Democratic Congress that came together with Speaker Tip O'Neill and Ronald Reagan and saved Social Security. A supermajority of Democrats voted for it, and even the creation of it.
So when one starts to argue about, well, where is the Democratic plan, the Democratic plan is in the wallets of 48 million Americans. And those Americans that are walking around working now with a Social Security card can say, wow, I am glad we have Social Security in the way we have it. And for those retirees that take their card out with those digits on them, they can thank the leadership of the Democratic Congress when it was created and also the Democratic Congress that saved Social Security to make sure that every American can have the maximum amount of benefits possible to them to help that 48 percent of the 48 million Americans that without Social Security would be living in poverty, to help 33 million of those retirees that are now, this is fact, not fiction, able to receive Social Security because, let us say, for instance, in that 33 million Americans, I am sure, Mr. Speaker, a number of their companies have gone back on their commitment on retirement. But Social Security is there for them. For those individuals that have passed on and gone on to glory, they were able to leave legacy benefits for their children.
Let us talk a little bit about the private accounts, because I think it is important that we talk about the privatization scheme that some people in this
town have in store or would like to put forth to the American people. Before I get into that, I would also like to add, since we are talking about the positive points of Social Security, that Social Security is important to stabilize the American way of life. If we start having benefits cut back, especially in this era of no health care, I must add, one may want to talk about health care accounts or special savings accounts and all of those things that are talked about from time to time.
Forty-seven million Americans are working without health care. These are not individuals that are sitting at home cracking their toes, saying the job situation looks sad. These are individuals that go to work every day. So if we start getting along with our friends in Wall Street and saying we are going to have private accounts and we are going to shore up some more money for Wall Street, then that is a gamble that I am not willing to take.
On the majority side, they are talking about, we need to privatize these accounts. Let me tell you, it is going to make it harder for everyone to achieve financial security, and I do mean everyone. Not just Democrats, not just Republicans, not just independents, not just people of color, not just Asian Americans. Every American will suffer under it. The size of the benefit cuts proposed in the philosophy that the majority side has is 46 percent. The average reduction of benefits a retiree would see over their lifetime would be $152,000. The amount that Wall Street would profit from the private accounts would be $940 billion. That is the only real bright spot here for some. The issue as it relates to our risk as it relates to this risky plan for private accounts, $2 trillion. The amount of government tax on private accounts would be 80 percent.
If the Republican proposal to cut Social Security benefits were in place today, the average senior monthly benefit would be $516. This is very real, ladies and gentlemen. Remember, I said right now, as in the present, today. If we look at the clock right now, if we look at today's date right now, the average benefit is $955.
Under the proposed philosophy that the majority side has, it would be $516. That is not something to be proud of.
There are a lot of other things that were mentioned recently in the media, and we will talk a little bit about that. But as we start, as we continue to talk about the issue as it relates to the price tag of privatization, it is staggering. It is a lose-lose proposition, as presently presented, the philosophy that the President has. More than a 40 percent cut in benefits, adds nearly $5 trillion in additional debt over a 20-year period; 70 percent privatization tax, which on average takes back 70 cents on every dollar in private accounts. Some argue 80 percent. I mentioned this a minute a ago: $152,000 in benefit cuts for young people is based on the price index.
So I think it is important that we look at this, especially as Americans are forced to start thinking about this, something that is 50 years away of being a problem. And I must say, after 50 years, Mr. Speaker, 80 percent of the benefits that are now offered in Social Security will still be intact. In 2052, 2053, people will still be able to receive 80 percent of the benefits. So I am wondering, where is the fire?
I can tell the Members what is the fire right now, if we can use that as a metaphor, or the emergency. The emergency now is the fact that we have Americans working without health care. Emergency is the fact that we are not able to provide benefits to our veterans that are now paying more for health care that they were promised that would be free. Emergency is the fact that we have a Department of Homeland Security, that we are rated as an F as it relates to protecting our information technology. Those are true emergencies.
Emergency is the fact that we cannot protect our borders. Those are true emergencies. Emergency is the fact that we have local districts, local cities, counties and State governments that are suffering through the acts of this Congress in what we call devolution of taxation. We will cut taxes, but we are going to make them raise them on the local level. Those are emergencies. Those are right now pocketbook, wallet issues that are facing Americans right now.
I am glad the gentleman from Ohio (Mr. Ryan) joined me. I am starting to think that some people in this town may want us to say that something is an emergency, and it is actually not, while we are not looking at the ever-growing federal debt, the highest in the history of the republic; the fact that we are not looking at the fact that Americans do not have health care; the fact that we really do not have anything going on as it relates to making the dollar stronger; the fact that we do not want to address gas prices. Maybe this is the reason why we are spending all of this Federal jet fuel that the President is using flying around the country to try to persuade people to believe in a philosophy of privatization of Social Security when he himself has said privatization of Social Security alone will not save Social Security.
I yield to the gentleman from Ohio, my good friend.
A joint hearing, I must add, Mr. Speaker.
I just want to make sure that we are factual, sir.
Mr. Speaker, reclaiming my time, I think it is important that we realize the urgency of so many issues that are before us. And the issue as it relates to Social Security, as the majority side or as the administration would like for us Americans to see it, is that it is not rocket science. It is not a Federal emergency.
Forty-eight million Americans celebrate Social Security right now. Thirty-three million of those Americans would be living in poverty if it was not for it. We have a number of young people that are going to school solely on survivor benefits because their family members have moved on.
And I can tell the Members what is even further appalling is the President saying to the African American that I am pushing private accounts because African American males do not live as long as Anglos.
In my opinion, Mr. Speaker, that is very wrong. But it goes to show us the desperation that some majority leaders on the majority side have to try to do this because they can.
But I can tell the gentleman the reason why we do not have a bill on this floor yet is not because we have staff or Members here that are lazy and do not want to write a bill. The reason why it is not here is that Americans are not with the administration and some Members of the majority side on messing with Social Security, especially as it comes down to private accounts on a risky scheme, because if not the number one, it is one of the main reasons why so many Americans appreciate this Federal Government, that we will keep our word, that we will stand by what we said we will do.
So when we start looking at these issues, the American people are not necessarily with the administration and some Members on the majority side as it relates to trying to change Social Security on a scheme of private accounts. That is why there is not a bill here. That is the reason why we hear some posturing here and there and an article saying we are going to start marking some up pretty soon.
I am going to tell the gentleman right now that discussion has been going on since 1978, and the reason why that discussion has been going on as it relates to private accounts since 1978 is the fact that the American people are not marching up and down the street saying, ``We want a reduction in our benefits; we want to gamble on our retirement.'' They are not saying that. What they are saying is that ``I have a Social Security card and guess what. When I reach the age I should be able to receive Social Security, I look forward to it. I want you to stand next to your word.''
So earlier I commended not only all of my Democratic colleagues but even some of the Members on the majority side that have the courage to stand up and say, I am here on behalf of my constituents, I am not here on behalf of myself, on being accepted by those who are trying to persuade them to do otherwise.
So when we start looking at it in a nutshell, Mr. Speaker, I am starting to believe more and more it is one of these things, look over here and think Social Security is Social Security. Meanwhile, we have the highest deficit in the history of the Republic. In Florida, that is a real issue; and I guarantee the reason why there are a number of Members of the Florida delegation that are not necessarily with the administration and the majority side and even some of those Members on the majority side are not with the majority side on the issue of privatization of Social Security, because eventually many of the gentleman from Ohio's constituents will be my constituents in the end in Florida.
And those are as-of-today numbers.
Mr. Speaker, reclaiming my time, I think it is important for the Members to understand and also for many Americans to understand that we did not just draw that number up in the back, that we were back there drinking a bottle of water, saying can we come up with a number that is a big number?
I know some of the Members are in their offices, and I think it is important that they know that national debt number as of today, and Americans and Members can go to the official Website of the U.S. Treasury. They have to go a couple of clicks, but I am going to share with the Members how they can get directly to that number and that ticker. Because if I am in the Treasury Department, I am going to have people go into two or three different clicks once they go to my home page and maybe, just maybe, they will get to the ticker because it is nothing that we can be proud of.
Also, as it relates, we need to talk a little bit about those countries that have bought our debt and we are beholding to foreign countries. The gentleman does that better than me. But the Web site is www.ustreas.gov. That is the Department of Treasury Web site. Www.ustreas.gov. Or you can go directly to when you go on the page, because we are trying to share with the Members and educate the Members and make sure the American people understand exactly what is happening here, because it is not a badge of honor to be a Member of the 109th Congress and for history to reflect that we made the decisions to have the highest deficit in the history of the Republic. That is just not something that one can be proud of. But you can go if you want directly to www.house.gov/budget_democrats. That is www.house.gov/ budget_democrats.
It is important, because our Democratic budget committee has really worked hard in making sure that we can pull this information out, that not only it should be useful to the Members on both sides of the aisle, but also to the American people.
Mr. Speaker, reclaiming my time, before the gentleman leaves for his meeting, that I am pretty sure is very, very important, the gentleman is going to have to not only give the information on the Web site, because we want to hear from Members, we want to hear from Americans, to make sure that we get the information from them on how they feel, especially as it relates to Social Security, the Federal deficit and other issues, because it is important that we share this, not only with young people.
We have the 30-something Working Group. But in our age range, I say to the gentleman, there are a number of young parents that are out there, and so many times here in Washington, people say, well, we are doing this for the future generation.
Well, the future generation has $26,000 in debt right now and climbing. So I do not know. I do not feel good about my daughter and my son having to worry about college and all these other things, and then worry about the Federal debt at the same time.
Mr. Speaker, I thank the gentleman. I want to thank the gentleman for co-chairing this 30-something Working Group that consists of 16 or 18 Members on the Democratic side of Members of the House. We, like I said earlier, try to come together and share this information, not only with Members of the Congress on what is important to the American people, but also what is important to young people that are trying to raise their families and have a good future for their children.
I think that it is important once again to know that on the Democratic side when we start talking about Social Security or we start talking about Social Security reform, I think it is important that the American people understand that we want to strengthen Social Security without slashing the benefits that Americans have earned. I think that is important.
I think that when you start talking about what Americans have earned, I believe that is paramount in this debate. And I think when they earn something, I think we need to make sure that we stand by our promise.
Now, when we have a forecast for the present benefit structure that will for almost 50 years be in place, and then beyond those 50 years 80 percent of those benefits will be provided, I think that is standing next to our promise.
I think there are some things that we need to do to make sure that the Social Security trust fund is solvent for years to come. One is to stop deficit spending in such a large amount of money every Congress; every budget that is passed, deficit spending. The whole philosophy of pay-as-you-go is no longer a philosophy as it relates to the majority. It is putting it on the credit cards. It is saying it is okay for foreign countries to buy our debt. It is saying that we will forestall it off to future generations.
I do not believe that that is something that we should subscribe to. I think we should work hard in bringing the debt down and paying back into the Social Security trust fund. That will have us continue to provide the kind of benefits that we look forward to, that many Americans look forward to.
When the President starts off in saying it is going to be $5 trillion to put forth his philosophy, I think that is problematic at the beginning, saying we are going to save you money, but we are going to borrow money to help you save money. It sounds like the Potomac Two- Step once again. And so it is important that we realize the gravity of this situation, knowing that there are issues that are greater than an emerging problem in 50-some-odd years.
So it is important that we do as we always do as Americans, come together to save great programs and to be able to help our elderly and frail, to be able to help those individuals that have worked all their lives, the 48 million Americans I speak of that are already receiving Social Security benefits and that are counting on them.
So, Mr. Speaker, I look on the bright end of things as I start heading towards a close here. The 48 million Americans that are celebrating Social Security right now, that are receiving on average $550 a month right now, which we know as of today if the majority side and the President's philosophy was in force, because there is no plan, that those benefits would be $516. That is easy math. That makes a world of difference to someone that is on a fixed income.
We know that 33 million of those 48 million are retirees. So when the 30-something Working Group starts to look at priorities, we want to watch out for our parents, we want to watch out for our future and for our children's future.
So when we were here in the state of the union and the President started talking about, well, people over 55 do not worry about it, my proposal will not affect your benefits, are we promoting two Americas, or are we promoting unity? I am glad my mom did not call me up and say, Kendrick, guess what? I am okay. You are not. Good luck. That is not what Social Security is about. It is not the ``Kendrick Meek Report.'' This is what took place here in this Chamber, in the state of the union, with both Houses coming together at that time.
So it is important that we realize what is being said and what is being done. Forty-eight percent of those individuals, of the 48 million, would be living in poverty if it was not for Social Security. That is important to the 30-something Working Group, especially for those young professionals that the gentleman from Ohio (Mr. Ryan) talked about when they leave their higher educational experience on average $20,000 in debt.
For those individuals, I mean, I thank God for the ability to have had the opportunity to go to school on a football scholarship and I left college without being in debt. But, guess what? Everyone is not an athlete. Every student going to college did not go on a scholarship. Some people had to get a student loan. And even for those that went on scholarships that had parents that could not afford it, Mr. Speaker, the money that it takes to buy books and other things that scholarships do not provide, they leave college or a post-graduate degree $20,000 in debt.
So if we start messing around with the benefit structure under the privatization scheme, guess what? We are going to have to take care of our parents and our grandparents. We are going to have to subsidize their income. We do now, but it will be greater. So that is the reason why this is important, that the facts are put forth. Forty-seven years of solvency, the way Social Security is right now will continue.
So, Mr. Speaker, I look forward, as long as there are those that are in this Chamber and outside of this Chamber that are sharing with the Americans inaccurate information and saying that privatization is good and it is going to be a really nice thing for all Americans and we all should do it, the 30-something Working Group will continue to work not only with the Democratic leader, the gentlewoman from California (Ms. Pelosi), and the gentleman from Maryland (Mr. Hoyer), who is our whip, and the gentleman from New Jersey (Mr. Menendez), who is our chairman of the Democratic Caucus, and the gentleman from South Carolina (Mr. Clyburn), who is our vice chair of the Democratic Caucus, and sharing accurate information with the American people and staying in the fight of informing them on the truth about what is happening right now; not what might happen, what is happening right now and what is going to happen for years to come.
Because, remember, I say to my colleagues, Social Security in the 1980s was saved by a Democratic House, working along with Ronald Reagan in the White House, doing what we had to do on behalf of individuals that were carrying Social Security cards to keep our promise to them. We did the right thing, and we will continue to do the right thing. But the right thing is not increasing the Federal debt, and it is not taking a gamble on private accounts.
So we will continue to share this information. I want to thank the Democratic leader for allowing the 30-something Working Group to have this hour. We look forward to being back next week, sharing good and accurate information, and the topic will be Social Security, with the Members of the House.