WTNH News Channel 8 / News / 1999

	President Proposes Social Security Investments - Will it Fly? (WTNH) _ Federal Reserve Chairman Alan Greenspan doesn't like the idea of playing the stock market with Social Security money. He says it could damage the economy. Last night the president proposed putting a percentage of the budget surplus towards Social Security, and using a quarter of those savings into stock investments. It's a plan that sounds reasonable, but does it go too far? News Channel's Ned Berkowitz reports. Social Security was created to make sure retired Americans would always have at least some money for their retirement. But with the system in jeopardy of running out of money, the president says keeping Social Security safe will now require some risk. President Clinton hit the road, campaign style today to sell the proposals he outlined in last night's State of the Union address. At the top of the list, saving Social Security and keeping the system solvent until 2055. The President wants to use $2.7 trillion, more than 60% of government surpluses over the next 15 years, to bolster Social Security reserves. $700 billion of that would be invested in the stock market to gain higher returns, another $500 billion would go toward creating new 401-(k) style retirement accounts for most working Americans. Federal Reserve Chairman Alan Greenspan today criticized the plan, saying it could damage the economy. But even if the president's plan does not succeed, many market experts feel some privatization of social security may be inevitable. Christopher Getman, Merrill Lynch: "I think there's enough support for the concept. How you iron out the technicalities and get everybody to agree is another problem." On the street, reaction to the president's plan was mixed. Phil Giuliano, East Haven: "I think it's a great idea. Why not diversify. We do it with everything else so why not do it with Social Security." Ned: "Do you think Social Security will be there for you when you retire?" Ashish Deshpande, Guilford: I'm not counting on it. I'm doing everything I can to save enough money to retire by myself." Greenspan and other critics of the Social Security stock plan say it would be difficult for the government to make investment decisions free of political considerations. For instance, Microsoft has been a great stock, but would the government invest in the company while suing them for anti-trust violations. Today's News Page. WTNH Home Page. ©1999 WTNH/WTNH-DT A LIN station.

President Proposes Social Security Investments - Will it Fly?
(WTNH) _ Federal Reserve Chairman Alan Greenspan doesn't like the idea of playing the stock market with Social Security money. He says it could damage the economy. Last night the president proposed putting a percentage of the budget surplus towards Social Security, and using a quarter of those savings into stock investments. It's a plan that sounds reasonable, but does it go too far?
News Channel's Ned Berkowitz reports.

Social Security was created to make sure retired Americans would always have at least some money for their retirement. But with the system in jeopardy of running out of money, the president says keeping Social Security safe will now require some risk.

President Clinton hit the road, campaign style today to sell the proposals he outlined in last night's State of the Union address. At the top of the list, saving Social Security and keeping the system solvent until 2055.

The President wants to use $2.7 trillion, more than 60% of government surpluses over the next 15 years, to bolster Social Security reserves. $700 billion of that would be invested in the stock market to gain higher returns, another $500 billion would go toward creating new 401-(k) style retirement accounts for most working Americans.

Federal Reserve Chairman Alan Greenspan today criticized the plan, saying it could damage the economy. But even if the president's plan does not succeed, many market experts feel some privatization of social security may be inevitable.

Christopher Getman, Merrill Lynch: "I think there's enough support for the concept. How you iron out the technicalities and get everybody to agree is another problem."

On the street, reaction to the president's plan was mixed.

Phil Giuliano, East Haven: "I think it's a great idea. Why not diversify. We do it with everything else so why not do it with Social Security."

Ned: "Do you think Social Security will be there for you when you retire?" Ashish Deshpande, Guilford: I'm not counting on it. I'm doing everything I can to save enough money to retire by myself."

Greenspan and other critics of the Social Security stock plan say it would be difficult for the government to make investment decisions free of political considerations. For instance, Microsoft has been a great stock, but would the government invest in the company while suing them for anti-trust violations.

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