But the president's strategy had other, surprising consequences. Federal Reserve officials note the hesitance of the president and Congress even to consider using tax cuts or additional spending to boost economic growth, despite fears that the global financial crisis could prompt a recession here. And far from sparking a debate on Social Security reform during this election, the president's strategy has turned many races into contests over who is more loyal to the system as it is now constructed. During the 1996 election, for instance, Rep. Nick Smith, a Michigan Republican, toured his district, charts in hand, to explain his ideas for privatizing a part of Social Security. This election, he has been targeted by the AFL-CIO with two rounds of ads labeling him weak on Social Security.
Democrats looking to overhaul the system face similar problems.
Rep. Charles Stenholm, a Texas Democrat who has worked with a group of lawmakers on a plan similar to Rep. Smith's, is being attacked by his Republican opponent, Rudy Izzard, for a provision that would gradually raise the retirement age to 70. However, the price tag would be reduced if the economy continues to grow robustly, or if the changes include a rise in the retirement age or in payroll taxes. The administration hasn't yet decided which proposals it will support. Mr. Reich chides Democrats for letting the surplus become an end in itself. She lost to a more conservative candidate in the primary, who in turn was defeated in the general election by the liberal Rep. Furse.