GOP's "Savings Recovery Act"

On April 15, 2009, House Minority Leader John Boehner previewed the Republican Party's "Savings Recovery Act." While the preview offers absolutely NO details on what the actual legislation will include, Americans have every reason to be skeptical.

Recent Republican proposals aimed at "retirement security" would have been disastrous, bankrupting an entire generation of American seniors.

The Republican Plan = Disaster

"I encourage everyone to try the rate of return calculator, and to think carefully about their retirement security."
-- Rep. John Boehner [Boehner Congressional Release, 4/11/05]

Good idea, Congressman... try it, we shall.

Under the Republican Plan, Seniors Would Have Lost 30% of Their Private Savings Since 2005. Since February 2, 2005, the day President Bush announced his plan to privatize Social Security, the S&P 500 has lost 29.4% of its value. From January 2, 2005 to April 14, 2009, the S&P 500 fell from 1,193 to 841. If a U.S. worker used his/her Social Security "private investment account" to invest in an S&P 500 index fund, they would have lost nearly 30% of their savings. [Yahoo Finance, accessed 4/14/09; 2005 State of the Union, 2/2/05]

The GOP's Push to Privatize

Bush: "I Believe You Should Be Able To Set Aside Part Of That Money In Your Own Retirement Account." In his 2005 State of the Union address, President Bush said, "I believe you should be able to set aside part of that money in your own retirement account, so you can build a nest egg for your own future. Here is why personal accounts are a better deal. Your money will grow, over time, at a greater rate than anything the current system can deliver - and your account will provide money for retirement over and above the check you will receive from Social Security." [2005 State of the Union, 2/2/05]

Boehner Urged Americans to "Invest A Portion Of Their Payroll Tax In A PRA, Which They Would Own, And Which Would Help Them." In a 2005 column, Rep. John Boehner wrote, "Younger workers, however, would be given an option: they could continue paying into the original system and receive whatever benefits Congress decides to offer. Or they could invest a portion of their payroll tax in a PRA, which they would own, and which would help them build a sizeable nest egg for the future. The choice would belong to the worker." [Boehner column via US Fed News, 4/29/05]

• Boehner: "Doing All We Can To Reform And Strengthen Social Security, Will Protect The Interests Of Workers, Retirees, And Taxpayers." In reaction to President Bush's 2005 State of the Union, Rep. John Boehner said, "The President's commitment to solving problems, rather than simply talking about them or passing them on to future generations, is exactly what America needs... doing all we can to reform and strengthen Social Security, will protect the interests of workers, retirees, and taxpayers." [Boehner Congressional Release, 2/2/05]