Younger union members and other young workers need to know that today's Social Security will pay full benefits through 2041, and 73 percent thereafter even without any change in the system, according to the 2002 annual trustee's report.

During the past decade, a relentless campaign to cast doubt on the viability of Social Security was waged by advocates of privatization. It eroded confidence of young people to the point that Time Magazine reported during the last presidential campaign that more believed in UFOs than in the prospect of a Social Security check when they retired. But doubt is not the same thing as a lack of support for America's social insurance program.

Worker confidence in Social Security has rebounded from a low of 19 percent in 1995 to 34 percent in 2001, reports AARP, the American Association of Retired Persons. This despite the dire predictions of privatization propagandists that Social Security is going broke.

Today's workers should ask what are the odds of seeing a flying saucer hovering overhead in 2041, versus the certainty that the full Social Security check will be in the mailbox? Not only does Social Security replace 40 percent of an average earner's income, the system provides all-important disability benefits and payments to surviving dependents.

Bush 'cooks the books'
In the attempt to conceal the fatal flaws in his scheme to partially privatize Social Security, President Bush manipulated statistics and ignored basic facts in a major policy address at the 2002 National Summit on Retirement Savings Feb. 28.

But neither President Bush nor the Republican Party want Congress to debate their plan to privatize Social Security before the 2002 elections so the American public knows in advance what's in store if the GOP captures complete control.

Bush stressed that today the average return on Social Security taxes is "less than 2 percent."At other times the President and supporters of privatization laud the average 7.4 percent return after inflation for stocks.Thus they erroneously conclude that the new privatization plans boast a hefty 7 percent return versus 2 percent.Also consider the 7.4 percent return is based on every stock sold which no diversified portfolio could achieve.There are winners and losers.

But the reason why the Social Security return is low (Treasury Notes pay about 7 percent) is that it pays for the benefits of current beneficiaries---as well as the benefits current workers have accrued. These payments are not avoided by setting up individual retirement accounts, so if you stop comparing apples and oranges the rate of return is essentially the same!

"Retiree benefits are paid directly from the taxes paid each year by current workers," Bush acknowledged. But then he gave his $590,000 pot of gold upon retirement example for young workers based on a well-paid employee who was able to invest all of his FICA taxes in stocks.(We are left to guess how benefits could be paid to retirees drawing Social Security.)

Remember that Bush's own Commission on Social Security is proposing that only 2 or2 percentage points of FICA taxes go into private retirement accounts, not the whole 12.9.

Finally, no financial planner would recommend investing more than 50 percent of equities in an investment portfolio. The plans envisioned by the Bush Commission restrict individuals to investing in one of three mutual funds in the early years of private investment accounts.After that some unspecified investment latitude would be allowed.

And let's not forget the "clawback" in the President's plans for private accounts, a little known and hardly ever mentioned feature. The account would cause a dollar-for-dollar reduction in the amount of Social Security benefits paid to the retired worker.

Keep in mind that the administrative costs of 140 million separate accounts would run an estimated 10 percent compared to Social Security's cost of less than one percent.And, don't forget the cost of commissions to buy stocks and bonds - Wall Street isn't.

Ron Cohen writes for the Communications Committee of the Minnesota State Retiree Council, AFL-CIO.

For more information

Read the 2002 Social Security Trustees Report, http://www.ssa.gov/OACT/TR/TR02/index.html