CNN's Moneyline: Social Security Attacks "Failed"

November 14, 2002

On the November 7 edition of CNN's Moneyline, host Lou Dobbs and reporter Brooks Jackson reviewed the success of negative attack ads against congressional candidates supporting Social Security reform incorporating voluntary personal accounts.

Dobbs: One issue Democrats thought they could win in these elections was Social Security. In race after race, Democratic candidates tried to tie the economy and corporate corruption to Republican efforts to privatize Social Security.

But as Brooks Jackson reports, those efforts, for the most part, failed.

Brooks Jackson, CNN Financial Correspondent: She survived it. So did he. In race after race, Republicans came out on top after a bitter national debate over creating private Social Security accounts. Democrats thought Elizabeth Dole was vulnerable on the issue.

Narrator: But Elizabeth Dole still wants to gamble Social Security money in the stock market, even though it would reduce guaranteed benefits for retirees.

Jackson: But Dole defended her plan straight to the camera.

Elizabeth Dole (R), Senate Candidate, North Carolina: I will not cut one single penny from the benefits of anyone on Social Security, and I won't vote to increase payroll taxes. I want to make Social Security stronger, or it will go broke.

Jackson: Dole won convincingly, 54 percent. Democrats hoped a plunging stock market would sour voters on investing, especially when coupled with Enron and other corporate scandals.

Narrator: Imagine turning your Social Security fund to the risky stocks like Enron.

Jackson: South Carolina Republican Lindsey Graham was attacked for his sponsorship of private accounts, but fought right back.

Narrator: Lindsey Graham and President Bush have a plan to guarantee and to protect and preserve Social Security.

Jackson: And Graham also won with 54 percent of the vote.

In Georgia, incumbent Democratic Senator Max Cleland hoped to save his seat with the issue. This debate was three days before the election.

Sen. Max Cleland (D), Georgia: One thing I will never support and that is turning the Social Security benefits of those people on Main Street over to people on Wall Street to play Russian Roulette with in the stock market.

Jackson: But challenger Saxby Chambliss unseated Cleland anyway, winning with 53 percent.

The Democrats' numbers differed from state to state. In North Carolina they said private accounts would cost this.

Narrator: More than a trillion dollars.

Jackson: In South Carolina they said it would cost more.

Narrator: Would cost 2 trillion dollars.

Jackson: One trillion? Two trillion? Do I hear 3 trillion?

Narrator: Jim Talent co-sponsored legislation that takes 3 trillion dollars from the Social Security trust fund and gives it to Wall Street to invest instead.

Jackson: But even that failed to save Democratic Senator Jean Carnahan. Republican Talent beat her 50 to 49.

Opponents of private accounts had hoped to bury the whole idea on Election Day by defeating some of those who defeated it. But that didn't work, and so the debate continues.

Dobbs: It will continue for some time, I'm sure. Enron.

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