Wall Street Meltdown Shows Why Bush –Lance Economics a Disaster

Normal 0

FANWOOD –With recent stock market drops causing massive anxiety for many New Jersey families, Linda Stender today took to task Leonard Lance’s support for failed Bush economic policies.

“As Wall Street continues its dizzying free fall, we see that retirement savings have lost $2 trillion in the past few weeks,” Stender said. “This is the Bush Administration’s nightmarish parting finale after eight years of complete fiscal incompetence and mismanagement. New Jersey families are worried about access to credit for their businesses, struggling with high food and gas prices, and now they are heartsick over watching their 401(k)s and pensions lose value. We clearly need a change in Washington to get our economy back on track.”

Stender pointed out that Lance’s record of supporting Bush’s economic proposals to privatize Social Security and privatize public pensions into 401(k)s reflected more of the same disastrous policies that have caused our current crisis. “Leonard Lance supported Bush’s risky scheme to privatize Social Security and he’s proposed converting the pensions of firefighters and teachers into 401(k)s,” said Stender. “Can we imagine the even greater economic catastrophe we’d be suffering now if Lance-Bush economics had allowed Wall Street to gamble with the retirements of New Jersey families? We must restore trust in our financial markets and ensure our seniors can retire with dignity. In Congress, I will fight for the change and new direction our country so desperately needs.”

*****************************************************

BACKGROUND:

Lance Supported Bush’s Privatization Proposal. In 2005, Lance voted against a Senate resolution calling on the U.S. Congress to reject privatizing Social Security. The act called on Congress to “reject the Social Security privatization proposals of the President’s Social Security Commission that would create private accounts, require deep cuts in guaranteed Social Security benefits and lead to excessive federal borrowing.” Lance voted against the resolution. [SR94, Seq. 1065, 6/23/05

Lance Supported Privatizing Pensions into Risky 401(k)s. At the same time Bush proposed privatizing Social Security, California Gov. Arnold Schwarzenegger in 2005 also proposed a radical plan to privatize the state pension fund into 401(k) plans. Lance said at the time, Schwarzenegger’s idea might be right for New Jersey. He noted that “401(k)s are becoming the norm in the private sector and the public sector should reflect that.” [Philadelphia Inquirer, 9/25/05]

Schwarzenegger Plan Seen as “Kissing Sister” to Bush Social Security Privatization. Analysts said the plan to privatize pensions came from “some of the same antitax advocates, free-market enthusiasts and Wall Street interests pushing President Bush’s Social Security Initiative” and that “although Social Security and the California pension plans have important differences and different long-term challenges, the proposed solution - private accounts managed by individual workers with a predetermined contribution by employers - is basically the same.” “They certainly are kissing sisters,” said Stephen Moore, the former director of the conservative Club for Growth.” [New York Times, 1/23/05]

Paid for by Linda Stender for Congress