DeMint Drums Up Support in South Carolina

August 20, 2003

The latest Social Security event held in North Charleston, South Carolina, hosted by Social Security Choice.org, and headlined by personal account advocate and U.S. Rep. Jim DeMint (R-S.C.) received attention from the media and support from the audience. The August 11 Charleston Post and Courier included a house editorial that discusses current systems fractures as noted by the event's panelists, and a letter to the editor by an inspired attendee of the event.

The opinion article summarizes DeMint's message: "Do something on Social Security." It states: "In 1945, 41.9 Americans paid money into the Social Security system for each beneficiary who took money out of it. Today, that worker-to-beneficiary ratio is 3.3 to 1. By 2030, it will be 2 to 1. This is a demographic numbers game that Social Security, as it's now designed, can't win. Unfortunately…the clear need for fundamental reform of Social Security continues to be blocked by misperceptions and political considerations.

"Such obstacles should be removed as soon as possible. That sense of urgency was stressed by three Social Security reform advocates—U.S. Rep. James DeMint (R-S. C.), Michael Tanner, director of health and welfare studies at the Cato Institute, and Robert Costello, president of Social Security Choice.org—who held a town hall meeting on the topic Thursday night in North Charleston.

Rep. DeMint told the Post and Courier that "Social Security reform is 'the biggest domestic issue of our generation,' backing up that dramatic billing by pointing out that 'Americans put more money into it individually than any other government program.' … He warned that the system, without comprehensive changes, now stands less than 15 years from requiring general-revenue funding to meet its obligations. He warned, too, that the longer we wait to fix Social Security, the more that repair job will cost."

At the event, DeMint and Tanner proposed "to 'create personal wealth' by allowing all Americans who now pay into Social Security to direct at least some of their money instead into personal savings accounts that would remain part of the system. … Mr. Tanner dismissed criticism of private accounts' dependence on stocks and bonds by citing their positive long-term performance as a safe long-term investment. As to the 'risk' argument, Tanner contended, 'Doing nothing is not an option.'"

"A rising number of the American people agree, according to public-opinion polls. They can see that the pyramid of the Social Security system eventually will collapse." Furthermore, as the article adds, the "election results from last year, when several Democrats tried and failed to capitalize on fading fears about any changes in Social Security, reflect an expanding public desire to address this growing problem with effective reforms.

The article concludes, "Rep. DeMint, Tanner and Costello are right to warn that with the worker-beneficiary ratio inexorably dropping, the status quo presents the biggest risk of all to the system—and to the millions of Americans who depend upon it."

South Carolina resident and attendee of the North Charleston Social Security event, John Steinberger, wrote a letter to the editor approving of the personal account reform plan proposed by DeMint, Tanner, and Costello, and encouraged fellow voters to support the legislation. His comments follow:

"I was enlightened at a recent forum on Social Security reform hosted by Rep. Jim DeMint of Greenville. The system will begin to run deficits in 15 years. There are three choices to sustain the system at that point—raise payroll taxes 18 percent from current levels, cut benefits by one-third or establish personal retirement accounts to increase payouts.

"Rep. DeMint has proposed legislation that will allow workers to invest portions of their payroll taxes in stock mutual funds, bond funds, or treasury bonds. Those at the lowest end of the income scale would be permitted to invest up to 8 percent of gross income in a personal retirement account, while the wealthiest Americans would be limited to a 3 percent contribution.

"Personal retirement accounts are a way for all Americans to accumulate wealth that can be passed on to their heirs. Currently, one-third of African-American males die before they are old enough to collect Social Security benefits, despite a lifetime of work. A participant at the forum asked whether any of the Congressional Black Caucus had co-sponsored Rep. DeMint's bill. His shocking answer was no!

"Young workers have a chance to build a million-dollar nest egg. We won't get this opportunity unless citizens urge their congressmen to pass this legislation. I appreciate Rep. DeMint's leadership on this crucial issue."

2005 Index | 2004 Index
2003 Index | 2002 Index | 2001 Index
2000 Index | 1999 Index | 1998 Index