Thursday, October 09, 2008

Walberg For Privatizing Social Security Before He Was Against It Even Though He's For It



At last night's debate in Adrian, Congressman Tim Walberg and state Senator Mark Schauer talked about privatizing Social Security. Here's what happened, via the Jackson Citizen Patriot's Chris Gautz:

They also clashed over Social Security, with Schauer saying Walberg supports privatization.

"No I don't," Walberg said.

Schauer then offered to read Walberg his statement to CitPat reporter Holly Klaft in expressing his support for private accounts.

Schauer said Walberg's plan is dangerous and that "Social Security is not in crisis."

and Holly Klaft:

Schauer said the first-term congressman's plan to fix the nation's Social Security system by creating private accounts would be ``devastating.''

Walberg said there is no effort at this time to privatize Social Security.

He has said he would support giving future workers the option of putting part of their payroll taxes in personal accounts.

And, finally, the Schauer campaign has this quote:
"I have never taken a position to privatize Social Security."
Now, I haven't gotten my hands on any audio from the debate (yet), so I can't give you the unfiltered exchange. But let's suppose that this is all that happened.

For starters, when it says:
He has said he would support giving future workers the option of putting part of their payroll taxes in personal accounts.
Well, Congressman Walberg, that is privatization of Social Security. At least, that's the sort of plan generally accepted as privatizing Social Security. People get into trouble by relying on Wikipedia too much, but the article on this debate, while not the best, has a decent explanation of what "personal accounts" means-- namely, that individuals could take money they pay into the Social Security system and invest it in stocks and bonds.

So, Congressman Walberg, when this happened:

They also clashed over Social Security, with Schauer saying Walberg supports privatization.

"No I don't," Walberg said.

And this:
"I have never taken a position to privatize Social Security."
Well, you weren't exactly being honest. And then this:

Walberg said there is no effort at this time to privatize Social Security.

That's basically true. No one's really been pushing that idea lately. It basically died in 2005, due to lack of support and a lack of political capital for President Bush. But that didn't stop Tim Walberg from supporting it in 2006, so much so that he put it on his website:
Tim supports President Bush’s efforts to expand our ownership society by allowing younger workers to voluntarily invest a portion of their payroll taxes and allowing the money to be secured in personal investment accounts.
And in 2004, he also put on his website:
Tim Walberg believes Social Security benefits must be protected and younger workers should have the option of investing a portion of their payroll taxes in stocks, bonds, or money market funds. Under this reform, younger workers will earn a higher rate of return and likely retire with far more funds than under the current system.
Those claims are a little dubious, but that's beside the point-- in 2004 and 2006, Walberg was clearly on the record as supporting privatizing Social Security.

And then, in September, from the Detroit News:
Walberg, R-Tipton, supports changing the program so younger workers could choose to invest a portion of their Social Security money in private investment accounts.
And this from the Citizen Patriot the next day:

Kennelly, who is president of the National Committee To Preserve Social Security and Medicare, which endorsed Schauer in his bid for Congress, said lawmakers should avoid looking to privatization as a solution.

Privatization would put Social Security money seniors rely on into private accounts that are at the mercy of the market, she said.

She said many Social Security recipients get a little more than $1,000 per month.

Schauer said Social Security is an efficient system that must be preserved. He has said he would oppose any efforts to privatize it and would work to make sure Social Security is available for the long term.

Walberg said he supports giving future workers the option of saving part of their payroll taxes in personal accounts.

My point, of course, is to say that yes, Congressman Walberg, you do support privatizing Social Security. You didn't call it that, but Holly Klaft equated your plan with privatization, and we didn't hear any calls for a retraction. And just a few days ago, Chris Gautz made the same connection between "privatization" and the Walberg plan:

Also in the ad, it points out Walberg's support of "privatization," which is another way of saying he supports giving future workers the option of saving part of their payroll taxes in personal accounts. Of course those accounts could be subject to the whims of the market, and especially this week, might not be the most popular idea.

So, Congressman, when you said:
"I have never taken a position to privatize Social Security."
well, that was just a lie. You have taken a position in favor of privatizing Social Security. The only thing you haven't done is used the magical word "privatize."

Needless to say, the Schauer campaign is jumping on this (and rightly so):

WALBERG LIES ABOUT SUPPORT FOR PRIVATIZING SOCIAL SECURITY AT ADRIAN DEBATE
Schauer has a clear record of fighting to protect guaranteed Social Security benefits

BATTLE CREEK—During last night’s debate at Siena Heights University in Adrian, Congressman Tim Walberg once again lied about his stance on Social Security, saying, “I have never taken a position to privatize Social Security.” In fact, less than a month ago Walberg told the Jackson Citizen Patriot that he, “supports giving future workers the option of saving part of their payroll taxes in personal accounts.” [Citizen Patriot, 9/9/08]

Such a policy would slash benefits by more than 40 percent for future retirees, replace guaranteed Social Security benefits with risky private accounts, drain trillions of dollars from the Social Security Trust Fund, and increase America’s debt to foreign nations by about $5 trillion over 20 years. [http://www.cbpp.org/12-17-04socsec.pdf; http://www.cbpp.org/5-1-06socsec.htm]

“Tim Walberg can call it whatever he wants, but the bottom line is that private accounts would effectively kill Social Security as we know it,” said Schauer spokesman Zack Pohl. “At a time when the financial meltdown has cost more than $2 trillion in lost retirement funds, working families and seniors can’t afford to put Wall Street CEOs in charge of our Social Security benefits.”

Background:

Walberg also supported private accounts for Social Security during his 2006 campaign: "I support efforts to expand our ownership society by allowing younger workers to voluntarily invest a portion of their payroll taxes and allowing the money to be secured in personal investment accounts. Once the system is fully transitioned into personal investment accounts, the system will involve real savings and real rates of return.” [Detroit News, 7/17/06]

Walberg has received more than $1 million in campaign support from the extreme Club for Growth, a group that also supports personal retirement accounts for Social Security. [Club for Growth Press Release, 8/8/06; www.clubforgrowth.org/about.php]

In March 2005, Vice President Dick Cheney visited Battle Creek to support President Bush's plan to privatize Social Security. That same week, Sen. Schauer hosted a town hall meeting with Congressman Sandy Levin to oppose Bush's privatization efforts. [http://www.woodtv.com/Global/story.asp?S=3122588&nav=0RceXskT]

According to the Social Security Office of Policy Data, there are roughly 126,552 seniors in the 7th district who receive Social Security benefits. [http://www.socialsecurity.gov/policy/docs/factsheets/cong_stats/2007/]

# # #

Come on, Congressman Walberg. If you really, honestly, truly believe that privatizing Social Security is the right thing to do, then say so and do it honestly. Defend your ideas for what they are. Right now, you're trying to have it both ways, and when people call you out on it, you lie. That's not acceptable.

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