Friday, February 04, 2005

How Do They Come Up With This Stuff?

Talon News reports that the White House called a Washington Post article "flat wrong."

The White House voiced its objection to the Washington Post news article by Jonathan Weisman titled, "Participants would Forfeit Part of Accounts' Profits," saying that its headline and central assertion were inaccurate. The White House said that the statement about workers who opt for personal accounts "would ultimately get to keep only the investment returns that exceed the rate of return that the money would have accrued in the traditional system," is wrong. The White House has asked the newspaper for a correction.

In a press release, the White House stressed, "Under President Bush's plan, participants would get every single penny of their retirement accounts -- both the principal and interest."

It disputed the Washington Post claim that personal retirement accounts benefit the federal government because of a "claw back" feature. Such a feature would reduce the amount of benefits paid out by the federal government when the personal retirement account investments earn more than the standard rate of return in the traditional system. In effect, the more successful the personal account does, the less a beneficiary would receive from the government.

The White House denied that the president's plan for personal retirement accounts contains a "claw back" feature. It insisted that the amount beneficiaries receive from the government would not be affected by the performance of a personal account. All gains from the retirement accounts would go to the beneficiary.

What was this guy doing during the State of the Union Address. He obviously did not hear the same speech that I heard. Rational people can disagree over personal accounts, so there are real arguments that can be made against them, but to flat-out lie, with "facts" just pulled out of the air, does a disservice to all sides of the argument. Anybody reading this blog knows that I favor personal accounts. DISCLOSURE: I am over 55, so I will not have the option of starting a private account, but I believe it is the best, or at least the least bad, option to allow younger workers to receive benefits when they reach retirement age,


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