Ted Cruz and John Cornyn have found a new issue to bond over: a shared desire to end Social Security and force workers into risky personal accounts.
Per the Dallas Morning News:
Texas Sens. John Cornyn and Ted Cruz are spending this afternoon learning about alternatives to Social Security – a likely prelude to a push to create investment accounts for younger workers.
Critics of such plans, including most Democratic officials, warn that “privatization” of the retirement safety net would push down benefits for future retirees. And they view it as too risky, because stock market volatility could leave older Americans with nest eggs too small to rely on when the time comes.
Y'all remember that massive stock market crash in 2008? Remember when Lehman Brothers failed and John McCain briefly stopped campaigning because of it? If George W. Bush had had his way, many Americans would have lost their savings, leaving them unable to retire or destitute.
Privatizing Social Security is a bad idea for working people, and a great idea if you want to enrich your Wall Street cronies. That's probably why Cornyn & Cruz want to explore the idea.
Private accounts would make Social Security less stable, as diverting funds to private accounts shortens the time that current benefit levels can be sustained without raising taxes. It harms workers currently on disability, by taking money contributed to the fund now out of their pockets. It would bloat the size of government requiring employees to track many tiny accounts — practically one for each worker.
It would have the most adverse affects on women — like most Republican policies, amirate? — because women work fewer years outside of the home, earn less per year than men, and live longer after retiring. 60% of all Social Security beneficiaries are women. Without the guarantee of Social Security, even more older women will end up living below the poverty line than they already do now.
Besides, the entire scheme rests on Americans investing successfully. That's the biggest gamble of all. An SEC survey found that only 14% of investors knew the difference between a growth stock and an income stock.
Someone needs to remind our Republican senators that 15% of Ohio Republicans credit Mitt Romney with killing Osama bin Laden. One quarter of Americans (and 49% of Republicans) think ACORN stole the 2012 election for Obama, even though the group folded in 2010.
Bottom line, it's a scheme that would enrich Wall Street and the same big banks behind the sub-prime mortgage crisis and stock market crash of 2008. Is that who we want securing the retirement for the next generations of American workers? I don't!
But yeah, it's great to see our junior and senior senators working together to make sure future generations of Texans are forced to gamble their retirement on the stock market! Teamwork, y'all.