Republican presidential contender Newt Gingrich is set to introduce a “growth and innovation” plan that would offer younger workers an alternative to Social Security.
The former House speaker, whose political comeback has seen his political fortunes improving in recent weeks, planned to tell students at St. Anselm College Monday that he would allow some members of the U.S. workforce to choose private retirement accounts and end the expectations that Social Security will be a safety net for older workers.
Gingrich’s plan would also let the markets determine retirees’ income.
We are still recovering from the big economic collapse of 2008, so betting people’s retirements against a very volatile stock market probably isn’t the best thing to do. As matter of fact it wasn’t a popular idea back when the markets were much more stable:
President George W. Bush offered some similar proposals for Social Security soon after winning re-election in 2004, but ran into stiff resistance from Democrats and from some within his own party about proposing changes to the popular program.
Remember Bush pushing his plan? It wasn’t just some within his own party that didn’t like it, it was a lot. The Bush plan saw 55% oppose it, as compared to 37% who favored it. It also contributed to his tanking approval rating.
The problem with the GOP and Social Security is their misrepresentation of it. They constantly tell us that it is an “entitlement” program, which is true, but not in the sense the GOP wants you to think. Every worker pays their fair share into Social Security, so it’s our money. Where it does become an entitlement program is for Congress, who decides to raid the coffers for whatever pet project they want. Both parties have engaged in this practice for decades.
It will be interesting to see the response to Newt’s plan. It could be the kiss of death for his campaign, or it could end up being embraced by the far right Republican Party. Over all I think if he makes it to the general, it will be a really hard sell and one that will help insure a second term of President Obama.