`Ownership society' must have a warranty (Rahm Emanuel-Regulated SS accts)

http://www.chicagotribune.com/news/opinion/oped/chi-0412140161dec14,1,5607256.story?coll=chi-newsopinioncommentary-hed

`Ownership society' must have a warranty
The free market is not infallible; government must help level the playing field to protect Americans

By Rahm Emanuel. Rahm Emanuel represents the 5th Congressional District in Chicago

December 14, 2004

Two major shifts in our economy have fundamentally changed the social contract between employers and employees. We are transitioning from defined benefit to defined contribution retirement plans and from employer-provided health care to individually purchased plans.

Republican policies have accelerated these trends while simultaneously cutting regulations and oversight capabilities. This combination has pulled the regulatory rug out from under individuals, leaving them to traverse the markets alone, without recourse against powerful interests.

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The Bush administration's proposal would call for investing a portion of workers' payroll taxes in the capital markets, to be managed by an industry that, as evidenced by recent events, cannot be trusted to police itself.

That is why Democrats who favor individual choice oppose privatization and instead support retirement accounts that supplement--but don't replace--Social Security. We can give workers more control of and responsibility for their retirement, provide strong oversight and leave in place the safety net guaranteed by Social Security.

When the new Congress convenes, the Republican majority will promote Social Security privatization and individual health accounts. One of the things Democrats will insist on is that the "ownership society" provide a government warranty of effective regulation, oversight and enforcement to ensure that marketplaces work fairly and outcomes are not controlled by powerful interests. As millions of Americans have learned through painful experience, choice without protection is no choice at all.

money to save the system and now wants to get out repaying. And they also have such a good reputation in keeping promises and treaties. Why are the Dems even thinking of going for this. Are they out to screw us too?

But Congressman Emanuel is only saying that if we do allow voluntary payroll deduction 401k's to piggyback the Social Security payroll tax system - with the Soc Sec UNCHANGED - then those voluntary accts will require a system of regulation to prevent folks from being screwed.

There are many rules for 401k's - and he wants those to apply to these voluntary accounts.

HE DOES NOT ENDORSE THE BUSH BENEFIT CUT WITH DIVERSION OF PAYROLL TAX INTO PRIVATE ACCOUNTS WITH 2 TRILLION IN BORROWING TO COVER THE DIVERSION OF THE PAYROLL TAX.

But the ABCNote, the WSJ folks, and Chi Trib headline writer choose to emphasize the regulation - as if he was OK with Social Security private accounts as long as they are regulated.

It seems impossible to get mainstream media to tell the truth in this country.

when they forced us all into Social Security to fix it the easy way, that left us with two retirement accounts AND a Thrift Savings Plan. Choice? Management? Nearly everyone I know rode the Clinton wave and never moved their money out of the stock market until it was far far too late. Like when they finally got the trimester report in the mail showing they had lost a huge bundle. Suddenly all those news stories and 911 seemed relevant to their "choice" that could have been made anytime online.

They know the basis for the privatization and "self-management" is a crock for the majority, that they can shift blame right back on the people that SS was made to protect in the first place! There are numberless schemes, nearly all GOP inspired that let you stick you hand into the rat trap. From tax free scholarship investment funds, applying for tax relief(so that they are forced to raise taxes to make up for the givebacks), the RX card choice, the flattering "responsible" libertarian notion that you are the best wizard to beat the system is just bait and little else.

They hardly try hard not to show their satisfaction at making fools out of the "little guy". They try not at all to show cause and reason. Just media blab points that are mostly old lies in dumbed down packages.