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 whitehouse.gov) 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.