SCR1 Social Security.doc

THE SENATE

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HAWAII SILVER LEGISLATURE, 2005

STATE OF HAWAII

S.C.R. NO.

SENATE CONCURRENT

RESOLUTION

URING PRESIDENT BUSH AND THE U.S. CONGRESS TO NOT PRIVATIZE

SOCIAL SECURITY.

WHEREAS, on April 14, 1935, Social Security was signed into

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law by President Roosevelt, and has helped children, the

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elderly, and those with disabilities to stay above the poverty

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level for over seventy years; and

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WHEREAS, without Social Security today, almost fifty

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percent of the U.S. senior population would live in poverty

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compared to approximately ten percent who actually live in

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poverty; and

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WHEREAS, because of this effect, Social Security is one of

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the most successful insurance programs ever created; and

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WHEREAS, opponents of Social Security believe that baby

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boomers, when they become dependents of the system, will skew

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the proportion of working adults to Social Security recipients

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down to 1.27 in 2030, thereby predicting a balance of zero in

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the Social Security reserve by 2042; and

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WHEREAS, although this is seen as a pitfall, the ratio of

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worker to dependent is still higher than that of 1960 where

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there were only 1.5 workers contributing to funds per each

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dependent; and

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WHEREAS, when Social Security was created, it followed a

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pay as you go system, and therefore, Social Security will never

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go bankrupt and shut down, but will instead revert back to its

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previous system as it performed before 1984; and

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WHEREAS, because of the prediction of foreseen problems

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related to Social Security, the Federal government would like to

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institute private investment accounts where the initial

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SCR1 Social Security.doc

estimated start up price ranges close to $1 trillion but may go

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up as high as $3 trillion; and

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WHEREAS, according to the Center for Budget and Policy

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Priorities, this plan may result in $1.4 trillion in national

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dept over the first ten years and add $4.9 trillion in dept over

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the next ten years; and

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WHEREAS, by creating private investment accounts which

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divert money into private accounts, additional risks such as

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retirement when stock markets are down, investing in bad stocks,

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and high management fees must also be taken into consideration;

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and

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WHEREAS, the analogy of fixing the problem of a leaky sink

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by destroying an entire house is much like what the Federal

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government is planning to do when they eradicate the current

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Social Security policy and replace it with private investment

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accounts; and

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WHEREAS, Social Security, which is seen as a safety net for

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retired workers who spend an average of twenty years in

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retirement after age 65, serves as a protection against

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inflation due to its cost of living adjustments and allows

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purchasing power and non-declining benefits; and

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WHEREAS, without Social Security, many of our elderly would

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live in poverty due to a shortage of saved income, pension

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funds, and also the rising cost of inflation; now, therefore,

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BE IT RESOLVED by the Senate of the Hawaii Silver

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Legislature of 2005, the House of Representatives concurring,

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that the Bush Administration and the U.S. Congress are urged to

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not privatize Social Security; and

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BE IT FURTHER RESOLVED that certified copies of this

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Concurrent Resolution be transmitted to the President of the

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United States, the Speaker of the U.S. House of Representatives,

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the President of the U.S. Senate, and Hawaii’s Congressional

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Delegation.

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