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Volume 70, Issue 101,
Monday, February 28, 2005
News Students weigh in on Bush's reforms Most agree Social Security needs fixing, but disagree over how By Angela Stokes
As they do across the country, opinions on President George W. Bush's proposal to privatize Social Security differ among UH students -- but most agree that something should be done to help the system. "I am in favor of reforming the Social Security plan, but not in the privatization of accounts. I don't think that (young people) will see a good investment return when we retire," political science junior Tony DuBois said. Bush's plan would allow workers under the age of 55 the option of putting up to two-thirds of their Social Security payroll tax into private accounts. The money in those accounts could be invested in the stock market or in bonds. No private accounts exist in the current system. Workers pay out 6.2 percent in payroll tax and employers match the 6.2 percent for a total of 12.4 percent that goes into the Social Security fund. Seventy percent of the tax money collected is then paid to retirees and the rest is placed into a surplus fund. Disabled workers, their dependents and survivors of deceased workers also receive a percentage of the tax. A poll on the president's proposal in one of DuBois' political science classes found that three-fourths of the class didn't support the plan. Those students are not alone in their opposition. "I think Social Security will be fixed, but Bush won't come up with a plan that works. I don't think this plan will pass," said philosophy sophomore Sandie Givey said. Without reform, Bush has said the United States will have to raise taxes dramatically, lower Social Security benefits or borrow massive amounts of money to keep the program afloat. Some students, like hotel and restaurant management freshman Sean Wiener, said the stability of the investment market is a concern when it comes to private retirement accounts. "It is a big gamble," Wiener said. "You could put all your money in one place, like stock, and get screwed." But the private accounts in Bush's proposal would be voluntary. He said the government will still be able to afford to give retirees monthly Social Security checks; the personal accounts will supplement that. "It seems like a good plan to have money to put into a separate account. If I am able to use it at retirement and I'm working to save my own money, then I don't see what's wrong with the new plan," psychology major Erica Salinas said. There's also optimism on campus about the proposal and its effects on workers' savings. "They should do it, and they should have done it already," business sophomore Josh Owen said. "It will give people the incentive to work so they can save more. They will be working for themselves." Regardless of what happens, said post-baccalaureate business student Vinay Bhosale, the responsibility for retirement savings is up to the individual. "My opinion in this matter is that retirement should
be fully privatized," Bhosale said. "We, as a country, need to have the
mentality to save for our own retirement. We can't rely on Uncle Sam to
do this for us. I've decided to set up my own retirement account and go
with it. The key is to start early and stick with it."
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