Sep 17, 2010
Fact Check: Personal Accounts and Privatization are the Exact Same Thing
Fact Check: Personal Accounts and Privatization are the Exact Same Thing
Many Republican candidates are trying to hide from their support of their unpopular and risky plan to privatize Social Security by claiming they only support “personal accounts.” But that’s just a different name for the exact same plan to gamble seniors’ hard-earned retirement on Wall Street.
FALSE CLAIMS: Many Republican candidates support personal accounts but don’t advocate privatization.
FACT: Personal accounts and privatization are the exact same thing.
In 2008, the Associated Press wrote a fact check on Sen. John McCain’s attempt to distance himself from support for Social Security privatization. The AP wrote, “McCain and other Republicans once spoke more openly of "privatization" but realized people didn't like to hear that. Now they talk of "personal accounts." It's the same thing.” [Associated Press, 6/14/08]
According to the Pulitzer Prize winning Politifact, “It was around this time that Bush and his party decided that most people didn't like the idea of "privatizing" Social Security. Pollsters found that if you didn't call Bush's plan "privatization" but instead called it "personal accounts," you could increase support for the plan significantly — even though it was the same plan.” [Politifact, 6/13/08]
Michael Tanner, a leading privatization supporter, called the distinction between personal accounts and privatization “a silly, semantic argument.” [Star Tribune, 8/05/02]
According to the AARP, “there is a lot of debate on the semantics rather than the substance. Essentially it doesn't matter if you call the concept ‘privatization,’ ‘personalization,’ or anything else—diverting Social Security revenues into individual accounts shifts risk to the individual and hurts the financial status of Social Security itself.” [www.aarp.org/money/social_security/a2003-03-26-ssprivatization.html]
BACKGROUND
AZ-08: Jesse Kelly Supports Privatization, Now Calls it “Personal Accounts.” After facing criticism for week over his support for privatizing and phasing out Social Security, Kelly’s latest ad claims that for Social Security he supports, “giving younger generations a choice.” According to his campaign website, “Younger workers should have the choice of allocating a portion of their contribution into a personal retirement account in their name.” Previously, Kelly has said of Social Security, “privatize it, phase it out.” [Kelly Campaign Ad; Kelly Campaign Website]
IL-10: Bob Dold Supports Privatization, Calling it “Individual Retirement Accounts” Funded From Social Security. According to his interview with the Chicago Tribune, “I would propose allowing a portion of Social security payments (not more that 25%) to be put into Government authorized individual retirement accounts.” Later, Dold tried to his position by claiming support for personal accounts doesn’t “advocate privatization.” [Chicago Tribune, 3/14/10; Daily Herald, 9/4/10]
IN-08: Larry Bucshon Supports Privatization, Calling it “Private Accounts.” On April 17th, when asked in an interview if people should "have the flexibility to invest their Social Security funds into private accounts," Bucshon said, "I think ultimately they should." Bucshon later tried to change his position, saying “I will fight with every fiber of my being to make certain the government honors the [Social Security] commitment.” [Evansville Courier & Press, 5/23/10]
NC-11: Jeff Miller Supports Privatization, Saying Social Security Should be Diverted Into “Some Funds in Private Securities.” Jeff Miller said he favored allowing Social Security funds to be diverted into ‘some funds in private securities.’ He then claimed that anyone who claimed he supported privatization “is a jerk.” [Ashville Citizen-Times, 9/16/10]
PA-15: Charlie Dent Supports Privatization, Through “Personal Retirement Accounts.” Rep. Charlie Dent has been criticized for years for playing “word games” by supporting privatization of Social Security through “personal retirement accounts” and then trying to hide his position by claiming he opposes privatization. [Morning Call, 3/16/05]
NM-02: Steve Pearce Supports Privatization, Wants Social Security Funds to “Divert into a Private Account.” Steve Pearce has long supported privatization of Social Security through “private accounts” that “divert” Social Security funds from the system. Recently, Pearce has tried to backtrack from his long history of supporting privatization. [Albuquerque Journal, 9/5/10]
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