Bush Plan for Social Security

George W. Bush has been accusing Al Gore of trying to scare the public about his plans for Social Security, tax breaks, etc. He is right. And the public should be scared.

Dubya will harm Social Security. He has said over and over again that under his plan the fund will last until 2015. Everyone under 70 has reason to worry if that is the case. Fifteen years is not that far away, and with life expectancies at about 85, it is clearly a problem.

Tax breaks to the wealthy will cut into debt reduction, health care and education programs, funding for the military and other crucial government investments in our future. It isn’t ghosts and goblins that send shivers up my spine this Halloween season. It’s a Bush presidency combined with a Republican Senate.

MARTI SHELDON

Huntington Beach

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Regarding Bush’s Social Security plan:

If young workers are given the opportunity to invest 2% of their income in U.S. bonds, they could obtain a yield of 6% for their retirement funds that would, of course, be significantly more than the yield of 2% they would get if the same amount stayed with the Social Security fund. The difference between 2% and 6% would add up to $150,000 with no additional risk. This assumes that they start the investment at the age of 21 and continue to the age of 65, they earn an average level of wages and their wages would grow annually by 4%, the same rate as for the past 10 years.

If the 2% were to be invested in a widely diversified portfolio of common stocks, the new plan would yield an extra benefit of about $500,000. This assumes future returns from stock investments would be about the same as those of the past 60 years, namely about 10%.

THEODORE A. ANDERSEN

Professor of Finance

UCLA

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Remember when Orange County trusted Wall Street brokers and invested tax money hoping for a higher return? Remember when Orange County went bankrupt? Do you want to risk the same kind of outcome with your Social Security benefits? I know I can’t afford to! Bush trusts Wall Street brokers with our Social Security taxes. That’s certainly reason enough to vote for Gore. Remember that when you go to vote.

ILENE DICE

Lakewood