President Bush's second term officially begins with his inauguration, but he
has already signaled his intent to push his Social Security privatization plan
through Congress during his second termin fact, as soon as possible. That's
what he wants. What the public wants, however, is far different as revealed
by four recent polls taken on the eve of his second inauguration.
The first poll to consider is the
new Pew Research Center poll, their annual assessment of the public's
policy priorities. That poll finds that, while 49 percent say the Social Security
system needs major changes or to be completely rebuilt, far more say the health
care system has problems of this magnitude (71 percent) or that the educational
system does (62 percent). And, while the poll finds support (54 percent to 30
percent) for the very general idea of having private investment accounts within
Social Security (the typical finding when no tradeoffs or costs are mentioned),
the poll also finds overwhelming support for the priority of "keeping Social
Security as a program with a guaranteed monthly benefit based on a person's
earnings during their working life" (65 percent) rather than "letting
younger workers decide for themselves how some of their own contributions to
Social Security are invested, which would cause their future benefits to be
higher or lower depending on how well their investments perform" (29 percent).
The second poll is the new
Time/SRBI poll, which focuses particularly on the Social Security issue.
To begin with, the poll finds that public divided both on whether there truly
is a Social Security crisis (45 percent say there is; 44 percent say that's
just a scare tactic to help Bush push through his plan) and on whether they
favor (44 percent) or oppose (47 percent) the general idea of allowing people
to invest part of their Social Security payroll tax in stocks and bonds.
Note that the latter finding was before respondents were informed of any possible
costs of the plan. Opposition moved to 48 percent to 41 percent if Bush's plan
included a drop in "guaranteed money from Social Security". And when
informed that Bush's plan would include government borrowing of $1-2 billion
over ten years, in addition to the private accounts and reduction in guaranteed
benefit, opposition to his plan soared to 69 percent to 21 percent.
In perhaps the most intriguing result of the survey, by a healthy twenty-three
points (56 percent to 33 percent), people believe they personally would do better
sticking with the current system "which pays benefits regardless of the
performance of stocks and bonds" rather than "investing part of your
Social Security payroll tax in stocks and bonds."
The poll also finds the public favors a series of alternative ways to fix the
Social Security system's problem, some by wide margins. By 48 percent to 41
percent, they favor raising the cap on income that is eligible for Social Security
taxation; by 58 percent to 38 percent, they favor reducing Social Security benefits
for wealthy people; by 69 percent to 28 percent, they favor providing more incentives
for people to work beyond the ages of sixty-two and sixty-five; and by a very
impressive 73 percent to 19 percent margin, they favor allowing people to invest
more in tax-deferred retirement accounts outside of Social Security.
The latter result strongly suggests that Congressional Democrats could strengthen
their hands against Bush's Social Security privatization push by focusing attention
on a plan to provide private accounts outside of Social Security, such as the
one advocated by Gene Sperling of the Center for American Progress or
alternatives previously proposed by economists such as Henry Aaron, Alicia Munnell,
or the late Robert Eisner.
The
new Washington Post/ABC News poll gives Bush a very low 38 percent approval
rating on Social Security, tied for the lowest he has ever received on this
issue in this poll. The poll also finds that the public trusts congressional
Democrats (50 percent) more than Bush (37 percent) to handle the issue. And
young people (age eighteen to thirty), in particular, have little confidence
in Bush on Social Security: just 33 percent approve of the way he is handling
the issue, compared to 60 percent who disapprove, and by 59 percent to 32 percent,
they say that they trust congressional Democrats more than Bush to handle the
issue.
And these are the voters who are going to power the Republican drive to transform
Social Security? Seems hard to believe based on these data.
On the specific plan Bush is putting forward to deal with Social Security,
the Washington Post/ABC poll reports markedly more positive results for that
plan than almost all recent polls, including the Pew and Time polls summarized
above. A question that mentions a change in the guaranteed benefit returns a
close split (48 percent opposed/47 percent in favor) and a question than mentions
this change in guaranteed benefit along with "a stock market option for
Social Security contributions" returns a 54 percent to 41 percent majority
in support.
How can this be-how did the Washington Post/ABC poll come up results so radically
different from other polls?
Simple. It's all in the question wording. The change in the guaranteed benefit
that is mentioned in the Washington Post/ABC questions is not described as a
cut in the guaranteed benefit but rather as "a reduction in the rate of
growth in Social Security benefits for future retirees"-a question wording
that no doubt elicited broad smiles down at the White House and in the offices
of congressional Republican leaders.
And I'm sure it's true that if the massive cut in guaranteed benefits proposed
by Bush is uniformly referred to simply as a reduction in the rate of growth
of benefits, Bush's plan could have pretty smooth sailing. But of course that's
not where the debate is going to take place and it's rather odd that the Washington
Post/ABC poll chose to use the locution favored in RNC talking points, rather
than the straightforward wording favored by other pollsters.
So these particular results should be treated very skeptically. In particular,
no one should suppose that congressional Democrats' criticism of Bush's proposed
cut in guaranteed benefits is likely to be ineffective, based on the Washington
Post/ABC findings. Noam
Scheiber is all over this one and his assessment is worth quoting at
length:
According to the Post, the response [to the proposed change
in guaranteed benefits] was basically a wash: 48 percent opposed the idea, 47
percent supported it. So does that mean it would be hard for Democrats to defeat
privatization by emphasizing benefit cuts?
Noooooo!!!!!!
What would be a wash is a debate in which one side argues: "To help keep
the Social Security system funded, we want to reduce the rate of growth in guaranteed
benefits for future retirees by up to one and a half percent a year." And
the other side argues: "We oppose reducing the rate of growth in guaranteed
benefits for future retirees by up to one and a half percent a year, even though
it would help keep the Social Security system funded and would, truth be told,
be the responsible thing to do."
What would not be a wash is a debate in which one side argues: "To help
keep the Social Security system funded, we want to reduce the rate of growth
in guaranteed benefits for future retirees by up to one and a half percent a
year." And the other side argues: "Bush will SLASH your Social Security
benefits." Or, even better, "Bush will SLASH your Social Security
benefits by $4 TRILLION," which is the kind of cut we're talking about.
Note to congressional Democrats: If there's something in here that doesn't
make sense, please see "Medicare, slowing growth of, 1995," in your
handbook.
Exactly.
The final poll to be considered here is the
new Annenberg survey. That poll finds startlingly lopsided 86 percent
to 11 percent opposition to a Social Security funding proposal worded as "[w]hen
current workers retire, giving them lower benefits than what they are now promised".
Note the huge difference with the Washington Post/ABC finding, though
both questions are referring to the same proposal.
The Annenberg survey also finds that only 18 percent of the public favors Bush's
plan to both reduce "promised benefits and current taxes by allowing workers
to invest some of their Social Security contributions in the stock market"
once it is mentioned that such a plan would entail borrowing as much as $2 trillion
to cover benefits for people who have paid into the current system.
And on Bush's alleged election mandate to transform Social Security, here is
what the public has to say: just 23 percent think his election victory means
the American people support his ideas about changing Social Security, while
65 percent do not. And of those who said he did not have such support from the
American people as a whole, only 19 percent believe he even has such support
from the people who voted for him. Finally, by 50 percent to 32 percent, the
public says they personally do not support his ideas about Social Security.
No mandate. Little support. Less enthusiasm. Maybe when House Ways and Means
Committee Chairman Bill Thomas (R-Calif.) called President Bush's plan "a
dead horse", he knew what he was talking about.
Ruy Teixeira is a senior fellow at The Century Foundation and the Center
for American Progress.
|