President Clinton knows that Social Security simply will not have the resources to pay all the benefits it has promised. He recognizes that Americans need the security of private investments to supplement basic Social Security benefits. Americans should be able to use Social Security to create wealth. President Clinton recognizes that Social Security should allow workers from all income levels to create a nest egg to use for their retirement or their family's future. Americans should have more to show for a lifetime of work than memories and a small monthly check.
Government investment is a bad idea.
The President agrees with the Congressional Research Service, Federal Reserve Chairman Alan Greenspan, and others that having the government invest the Social Security trust fund simply would not work and could threaten the economy by politicizing investment decisions. Personal retirement accounts are feasible, cost-effective, and safe. President Clinton knows it would be fairly simple to solve the logistical problems associated with creating personal retirement accounts, and that these accounts could be structured to be both inexpensive and low-risk. Workers in three Texas counties already manage their own Social Security investments with high returns, and other Americans can, too. Gaps in the Proposal.