News Release

July 29, 2004

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Democratic platform silent about Social Security crisis

WASHINGTON--The Democratic Party platform approved during this week's national convention opposes Social Security "privatization" or any reduction in Social Security benefits, but says nothing about how the party would deal with the program's looming financial crisis, according to Michael Tanner, director of the Cato Institute's Project on Social Security Choice, who made the following comments on the platform:

"Social Security will begin running deficits in less than 15 years, spending more on benefits than it takes in through tax revenues. Overall, the program faces more than $26 trillion in unfunded liabilities. As former President Bill Clinton pointed out, three are really only three options for Social Security reform: raise taxes, cut benefits, or invest privately. Since the Democratic platform rules out private investment or benefit cuts, it could be accused of implicitly endorsing tax increases. On the other hand, it could also be said to have ducked the entire issue."

Tanner is available for media interviews.

Social Security Time Bomb, and the Candidates Aren't Talking, by Michael Tanner

The 6.2 Percent Solution: A Plan for Reforming Social Security, by Michael Tanner