Bush Reaffirms Support for Personal Accounts
December 21, 2000
Following are excerpts from comments from President-elect Bush during the press
conference announcing Paul O'Neil, CEO of Alcoa, as Treasury Secretary:
"I think it is so important for members of the Hill to understand that tax
relief is all about economic growth and cash flow and accumulation of capital,
and so is Social Security reform. Part of the reforms we outlined in the campaign
on Social Security, as you may remember, talked about personal savings account.
That not only encourages people to manage their own money, trust people with
their own money, that policy encourages the accumulation of capital in the private
sector. Capital is what fuels entrepreneurial growth."
…
"We have a plan, the cornerstone of which will be tax relief, free trade,
Social Security reform, less regulations."
…
QUESTION: "You've mentioned Social Security several times. Two questions:
How do you persuade Americans at a time when we may be going into a slow down
that they want to put their retirement money into private accounts, perhaps
in the stock market?"
BUSH: "Right."
QUESTION: "And secondly, are you still planning to form a commission on this
as the first step to bringing consensus on it?"
BUSH: "I said I'd do so in the campaign, form a commission for Social Security.
I'm going to look at to make sure it's the right policy. I think it is. And
we'll let you know."
"Secondly, an investment in the private markets should be viewed as a long-term
hold, not something -- the mentality of the day-trader is not a part of the
vision of a retirement system where people are able to hold assets for a long
period of time.
"There will be ups and downs in the marketplace. But the facts are that the
rate of return on moneys held in the private markets are significantly higher
than that which is achieved off of the Social Security trust.
"And in order to make sure that baby boomers who are going to retire within
the decade and beyond have got retirement system, we've got to do a better job
of getting a rate of return on the moneys in the Social Security trust.
"Secondly, one of the key challenges for our nation is to make sure that there
is enough money in the private markets to fuel economic growth in the future.
And a Social Security system that allows people to manage their own money in
private markets will provide the fuel for economic vitality in the future.
"And I believe the American people heard this argument.
"I want to remind you that my opponent also talked about some kind of private
savings accounts; we just disagreed on the funding mechanism. I think the private
savings accounts ought to come from the payroll taxes people contribute into
the Social Security trust. And this is an important issue that I'm going to
prioritize right after I'm elected."
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