Lindsey Says Bush Still Committed to Individual Accounts, Sees Action in 2003

December 4, 2001

Lawrence Lindsey, President Bush’s chief economic advisory, has restated the President’s commitment to Social Security reform and suggested that the President will push for passage of individual accounts in 2003. Appearing on Fox News Sunday, Lindsey was asked by host Tony Snow: "The Social Security commission, it's going to come up with recommendations. A lot of people are skittish about the stock market. Is it still wise, in your view, to have some private investment component in Social Security?"

Lindsey replied, “ Yes. What we're talking about here is diversifying your risk. If you'd put $2,000, say, in the stock market every year for the last 20 years, and Monday the stock market was to be cut in half, you would still have a higher rate of return than Social Security gives you. So, yes, you definitely want to do some diversification."

Snow then asked about timing, whether the President would send a bill to Congress in 2002. Lindsey suggested that 2003 was more likely, noting that the commission has not yet released its report. “ I think what we want to do is, we want to see what the commission comes up with. I think the commission's going to come up with a variety of proposals that cover the field. And let the debate proceed. I think the president definitely wants this. Whether next year or the year after is the right timing, let's see what the commission comes up with first.”

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