Elsewhere among the Bush policy proposals, investors are giving Dick Cheney's recent energy speech high marks. The veep emphasized that energy production not conservation is the answer to shortages in electricity, natural gas, and other power providers. Even liberal Democrats like Sen. Chuck Schumer are signing on to the concept. No wonder Democrats led by Sen. Tom Daschle are screaming like stuck pigs. Of course, Bush will strengthen his ties to the investor class, but Social Security reform will play well among heavily Democratic voting groups such as blacks, Hispanics, labor, and senior citizens.
Ownership is a key theme here, along with economic growth.
And, of course, they'll have a source of high-yielding retirement funds without paying higher payroll taxes in the future. In coming weeks, President Bush would be well advised to link personal tax cuts with Social Security retirement accounts. The distribution tables change radically when private investment accounts are added to the calculus. Folks at the low end of the income distribution hardly pay any income taxes, but they are increasingly overburdened by big payroll taxes paid on the first dollar of income earned. All in all, Bush is having his way.