Friday, January 13, 2006

President Clears It Up

I don't know how I missed this earlier, but on February 4th of 2005, GWB gave this little rundown (transcript from of exactly what his proposal was to fix social security. The question is from a woman in the audience in Tampa, Florida:
Q: How is it the new plan is going to fix
that problem?

THE PRESIDENT: Because the -- all which is on the table begins to
address the big cost drivers. For example, how benefits are calculate,
for example, is on the table; whether or not benefits rise based upon
wage increases or price increases. There's a series of parts of the
formula that are being considered. And when you couple that, those
different cost drivers, affecting those -- changing those with personal
accounts, the idea is to get what has been promised more likely to be
-- or closer delivered to what has been promised.

Does that make any sense to you? It's kind of muddled. Look,
there's a series of things that cause the -- like, for example,
benefits are calculated based upon the increase of wages, as opposed to
the increase of prices. Some have suggested that we calculate -- the
benefits will rise based upon inflation, as opposed to wage increases.
There is a reform that would help solve the red if that were put into
effect. In other words, how fast benefits grow, how fast the promised
benefits grow, if those -- if that growth is affected, it will help on
the red.

Okay, better? I'll keep working on it. (Laughter.)
May God bless it - to our understanding.

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