U.S. Newswire

February 27, 2002 Wednesday

SECTION: National Desk

Gephardt Response to Speech on Social Security by Majority Leader Dick Armey

DATELINE: WASHINGTON, Feb. 14

The following statement was released today by the office of House Democratic Leader Richard A. Gephardt: "I am gratified at news that Majority Leader Armey wants an honest debate about Social Security. We should have this robust dialogue as soon as possible in the House and Senate.

"A vital public trust, Social Security has served for 67 years as a ringing commitment to all Americans who work hard and play by the rules. The American people trust this program. They know it forms a cornerstone of our retirement security system. They deserve to have a full hearing in Congress about all the plans to reform and privatize it. "Mr. Armey's ideas cast doubt on Social Security's future. Today in his speech, he repeated his desire to bring up a sham 'certificates' bill that gives people a piece of paper worth nothing and fails to guarantee Social Security benefits for current workers. And his plan to privatize Social Security makes promises it simply can't keep. Many experts predict that it will lead to benefit cuts or cuts in other budget areas like education.

"If Enron's collapse isn't a prime argument against Social Security privatization, I don't know what is.

Capping a broader decline in the stock market, Enron's fall caused thousands of once-prosperous employees to lose their life savings.

"Meanwhile, the administration's budget drains $1.5 trillion from the Social Security trust fund, breaking both parties' promise to safeguard the trust funds. Two of the three plans offered by the President's Social Security Commission explicitly propose cuts in benefits, while the third plan could lead to benefit cuts even for individuals who opt out of private accounts.

"As Majority Leader, I hope Mr. Armey allows consideration on the floor of his proposal as well as the three plans offered by the President's Commission. These proposals are all deserving of a full, honest debate in the near future."

CONTACT: Erik Smith or Kori Bernards, 202-225-0100 both for House Democratic Leader Richard A. Gephardt Web: http://democraticleader.house.gov