Treasury Secretary pitches Social Security plan in Bozeman

By RON TSCHIDA, Chronicle Staff Writer

U.S. Treasury Secretary John Snow carried the Bush administration message on Social Security reform to Bozeman Wednesday, addressing about 65 people at a Bozeman Area Chamber of Commerce forum.

"Every American has a stake in this," Snow said.

Snow's visit was part of the Bush administration's 60-day, 60-city tour to promote plans to change Social Security. Bush was in Iowa Wednesday talking about the issue.

In Bozeman, Snow hit all of the main points the administration has been making for months:

€ The underlying problem is Social Security isn't sustainable for demographic reasons. The first of the 75 million members of the Baby Boom generation reach retirement age in 2008. By 2017, Social Security will pay out more in benefits than it receives in revenue. Its trust fund will be exhausted in 2041.

€ Social Security "has served us well" and the president is committed to saving it.

€ Waiting will just make the problem worse, so the prudent thing to do is to fix Social Security now.

Snow acknowledged that creating the personal accounts the administration wants will not solve the looming deficit in the Social Security fund.

"But I think they have to be an integral part of a fair and equitable solution," he said to the invitation-only crowd at the Holiday Inn.

Younger workers would be able to divert part of their payroll taxes into accounts invested in stocks and bonds, he said, and achieve a better rate of return. He said the accounts would supplement Social Security.

"This is all about arithmetic and not about ideology," Snow said. "Nobody is proposing to privatize Social Security."

Personal accounts would be a government-run program. And the funds would be invested in "safe and secure index funds" through the federal "Thrift Savings Plan," the same plan that members of Congress and members of the military invest in.

As to specific proposals that would solve the pending shortfall in Social Security, Snow said Bush is open to many options but hasn't embraced any particular solution yet because the country first needs to be educated about the gravity of the problem.

He spoke for about 35 minutes and took several audience questions.

Snow also met privately with the chamber's executive board for about 45 minutes. Chamber president and Chief Executive Officer David Smith said the Treasury secretary addressed issues important to business owners, including health care costs, medical and legal malpractice and the affect of huge federal deficits, a subject he also addressed in the larger forum.

The federal deficit is getting so big it threatens economic growth, Snow said. It is not a result of too little revenue -- a reference to the tax cuts enacted under Bush -- but too much spending.

As Snow addressed the crowd, on the sidewalk along North Seventh Avenue more than 30 protesters carried signs.

Sheena Rice, 22, carried a sign saying, "Honor thy father and mother." She said she doesn't believe in privatizing Social Security. People can invest in the stock market through 401k retirement plans and other options.

"Social Security should not be one of those options," Rice said. "Social Security is a social program. It's for the people. It's not for Wall Street."

Ron Tschida is at rtschida@dailychronicle.com

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