Issues Defined But Have a Minor Effect on Campaigns

Lacking a war or Great Depression, Americans since the Lyndon B. Johnson/Vietnam debacle choose presidents with whom they feel comfortable.

Arkansas Gov. Bill Clinton had no foreign affairs experience. Yet, his boyish charm was enough to defeat President George H. Bush who had a 90 percent approval rating following the Persian Gulf War.

The three presidential debates this year established the personas of Gov. George W. Bush and Vice-president Al Gore.

Bush is amiable, low key and smiles pleasantly. His big claim is that he “brings people together.”

Gore is in constant attack mode, recites pertinent statistics and promises more government assistance for the “right people.” His big claim is that he “has experience.”

In politics, likeability usually trumps experience. Remember Dwight D. Eisenhower, John F. Kennedy, Jimmy Carter, Ronald Reagan, and William Jefferson Clinton.

However, for undecided voters in the current race there are three issues meriting definition – Social Security, Medicare and education. Both candidates would “fix” these paramount government programs in different ways.

Bush would partially “privatize” the old age pension program. This would allow workers to designate that 2 percent (not 20 percent as critics exaggerate) of their payroll taxes be invested for them in approved financial securities of their choice.

Designated investments would be limited to triple-A corporate bonds, U.S. Treasury notes, top-rated mutual funds, annuities and insured bank certificates of deposit (not in common stocks as widely reported).

This would give future retirees a substantially greater pension than if it was based entirely on government management. Oh, the wonders of compound interest!

Retirees already in Social Security would continue under the present plan. This is gender discrimination for those of us who plan (so far, so good) to live forever. However, the least we can do for our working children is to give them the option already available to British and Chile workers.

Only private capital creates opportunity for wealth and democracy – as history has amply demonstrated.

Gore would put all Social Security taxes in a “lock box” (a proposal and phrase coined by Republicans) and pay off the national debt with half of any budget surpluses that might occur. Presumably, all interest saved would go to shore up Social Security.

The American Academy of Actuaries says interest on the present national debt will pay off only half the Social Security obligations after 2037. Thereafter, pensions will have to be subsidized partially by increased income taxes.

The fact is that Social Security and Medicare eventually will have to cut benefits and/or raise payroll taxes – regardless of who wins on Nov. 7 or any time in the future.

Bush’s plan would put off the inevitable longer than Gore’s – thus gliding to a soft landing. Until then, retirees would have more to spend on themselves; and the government would have less to spend on new projects.

Gore’s plan would spend more freed up debt interest right away for social benefits, but reach the moment of fiscal truth much sooner and harder.

The responsible position would be for Congress to adopt, and the president sign,

proposals of the National Bipartisan Commission on the Future of Medicare. It was appointed by President Clinton and Chaired by Democrat Senator John Breaux.

The commission made two recommendations:

* Small, immediate “increases in Medicare co-pay and deductible structures.”

Translation: raise payments into the plan.

* “Standard benefit packages specified in law.” Translation: reduce benefits.

A stunned President Clinton discharged the Commission and deep-sixed its report.

As for education, only six percent of public school revenue comes from the federal government. The major contributions come from state and local taxes. Democrats want greater control of schools and would gain same through greater designated federal contributions.

American public schools do a commendable job -- considering the centuries-old agricultural economy approach, influx of illiterate aliens and disinterest of inner-city families.

Competitive school vouchers supported by Bush; and more unionized teachers supported by Gore, are Band Aid solutions.

A healthy public-school system is essential for representative democracy says Gore.

There must be a nation-wide standard of excellence says Bush.

Both men are correct. However, the long-range solution is reform of the system -- not tighter control of failing policies by Washington totems.

The education issue hinges on which presidential candidate can, and will, lead a cultural crusade. The goal must be year-round classes taught by dedicated professionals earning year-round salaries. And so we come to the crucial divide – educated children versus carefree seniors.

The bully pulpit is potent, but only Congress decides issues. The duty of voters is to choose a president who can best lead the way and balance the calls for government’s limited largess.

A persuader or an enforcer?

Lindsey Williams is a Sun Herald columnist

williams – issues

Sunday – oct. 29, 2000

6 col head and byline logo for editorial column