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CONGRESSIONAL RECORD— Extensions of Remarks E974 HON E974 CONGRESSIONAL RECORD — Extensions of Remarks May 13, 2005 Still, Snow said, ‘‘I challenge all of our paign—told me the idea of allowing the trust congratulate the Israeli people for a remark- critics to say, if you think you’ve got a bet- fund to invest more broadly makes sense. able history and to celebrate the strength of ter idea, what is it?’’ But he said the public isn’t ready for that the U.S.-Israel relationship. He added, echoing Perot without the irony discussion. of anatomy, ‘‘We’re all ears.’’ Despite the lack of a cohesive public de- In just 57 years, a land mainly comprised of Well there is a better idea—but sadly, the bate, the trust fund investment idea may desert has been transformed into fertile farm- administration is all fists in fighting it back. emerge as a dark horse. On Monday, the Yale land, thriving communities and world-class cit- That’s because private accounts are not on School of Management announced a working ies. Industry and technology have boomed the list of features the Bush folks are willing paper by finance professor Will Goetzmann and most significantly, millions of Jews have to do without. that shows exactly how such a system might returned to live in their ancestral homeland. The idea behind the private accounts is work. Goetzmann envisioned an independent A robust democracy has developed around that workers could choose to invest their the ideals of freedom of speech, freedom of money in stocks. not just the long-term agency, similar to Fannie Mae, that would bonds the trust fund uses today. Over time, manage the Social Security fund. It could religion, fair elections and an independent jus- on average, company shares earn higher re- issue its own bonds and sell contracts, like tice system. In fact, it is the only nation in the turns than bonds. Social Security could meet annuities. It could invest in all sorts of so- region to accomplish this. its obligations without raising payroll taxes, phisticated instruments that individual ac- Brave soldiers have fought to defend their and poof! We wipe out much of our $11 tril- counts couldn’t touch, such as commercial brethren and innocent civilians have coura- lion deficit. real estate, commodity indexes and short- term Treasury notes. geously endured the constant threat of at- If tapping into the stock markets would tack—all to live freely in their homeland. And, work in private accounts. why can’t it work Goetzmann calculated a portfolio mix that for the trust fund as a whole? Why can’t the would most closely mirror the rise in U.S. despite this constant threat, the Israeli people fund simply set a target of stockownership— wages. That’s the measure Social Security remain committed to a peaceful coexistence say, 25 percent—and gradually ramp up to uses to set payouts to retirees. with their neighbors—a testament to their res- ‘‘It’s a fairly broadly diversified portfolio,’’ that target, without giving Aunt Martha fits olute and compassionate spirit. Goetzmann said Monday. over the state of her personal account? Setting the right investment mix, he said, As remarkable as Israel’s short history is, The financial results would be identical to ‘‘is a very sophisticated question that is not we must not take its existence for granted. Bush’s plan. going to be answered with a few oversim- While recent events have sparked new opti- The start-up cost would be lower because it plified choices on a menu.’’ mism in the peace process, radical terrorist or- could be done over a period of years. And getting to that point in the debate Aunt Martha, who may already have plen- ganizations, such as Hamas, Hezbollah and will not happen as long as we have officials ty of worries about her 401(k) and other pri- Islamic Jihad, emboldened by Iranian and Syr- on both sides who give us an oversimplified vate savings, could rely on a predictable ian support, are as committed as ever to their menu of political arguments, and nothing stream of retirement income, no matter more. core goal: the eradication of Israel. And by what—just like uncle Chester had back in now, we are all too familiar with the daunting the day. f task of protecting innocent people from suicide The fund could achieve returns based on ISRAEL INDEPENDENCE DAY bombers. decisions by the best and brightest financial minds—not the twitches of a nervous house- Despite this reality, Prime Minister Sharon hold, multiplied by 100 million. HON. CHRIS VAN HOLLEN and the Israeli people plan to move forward Last week, a ranking Treasury official told OF MARYLAND with an historic and courageous plan to with- me the problem is that Social Security IN THE HOUSE OF REPRESENTATIVES draw from Gaza and parts of the West Bank would end up meddling in the stock mar- Thursday, May 12, 2005 this summer. kets—a dangerous thing if, say, someone in As Israel moves forward with efforts to live power wanted to help or hurt General Elec- Mr. VAN HOLLEN. Mr. Speaker, I rise today with its neighbors in peace and security, it is tric Co. in honor of Israel Independence Day. This crucial that we continue to stand by her. But that worry is easy to wave off with a young country, now 57 years old and sur- We must defend Israel’s right to engage in pair of laws even this Congress would pass rounded by hostile neighbors on each of its without much debate: All stocks must be legitimate acts of self-defense to prevent ter- part of broad index funds, and never could borders, has stood as a bulwark of democracy rorist attacks in Israel; the Social Security Administration vote in throughout its history. We must stand up for Israel when our inter- company proxies. On this day we honor the people of Israel, national allies and other members of the inter- On Monday, Snow produced another an- who struggle daily to maintain freedom and national community unfairly criticize her; swer: Allowing the fund to invest as a whole independence. Throughout the country’s short We must hold Syria, Iran, and any other in stocks produces a short-term surplus, history, Israelis have fought against country that aid and harbor terrorists, account- ‘‘and short-term surpluses become subject to unfathomable odds to reestablish the birth- able; and the spending proclivities of Congress.’’ place of the Jewish People. Today, Israel ‘‘This,’’ Snow said of the private accounts, We must push President Abbas and the now echoing Al Gore, ‘‘is a lock-box.’’ stands strong and prosperous, longing to live Palestinian leadership to match Prime Minister It’s true that Congress—and our free- in peace and security. Today we also remem- Sharon’s courage by taking steps to end cor- spending president, by the way—have bor- ber and pay tribute to the strong bond of ruption, crack down on terrorist organizations rowed heavily from today’s Social Security friendship and support between the United and end the media incitement that encourages surpluses. But it’s hard to believe that fed- States and the State of Israel. hatred and violence. eral spending rises just because the surplus I am proud to have visited Israel and to is there. It rises because we have rising Support for Israel has been one issue con- have seen firsthand the courage and steadfast sistently agreed upon by both Republicans needs, and because the political system we resolve of its people. I look forward to a time have causes it to rise. and Democrats, through many different admin- Anyway, there are better ways to rein in when we will be able to join Israel in the cele- istrations and many different times. I am proud federal spending than to needlessly take tril- bration of a more peaceful and secure Middle that this support remains so strong today. lions of dollars out of the system and put East. Mr. Speaker, it is truly an honor to stand by Mr. Speaker, it is my hope that all Ameri- them in a place—your hands and mine— Israel and I know my colleagues join me in ex- cans will join me in congratulating the citizens where they will cause new grief. The admin- pressing Mazel Tov for a remarkable 57 years. istration’s real goal here is not to advance of Israel and the entire Jewish community on Social Security, but to push its social agen- the 57th anniversary of the birth of the State f da, the so-called ‘‘ownership society.’’ of Israel. ISRAEL INDEPENDENCE DAY Funny, median family income adjusted for inflation—the most important measure of f how typical Americans are doing—has fallen IN HONOR OF ISRAELI HON. ROBERT MENENDEZ three straight years and is headed for a INDEPENDENCE DAY OF NEW JERSEY fourth as Bush showers tax breaks on compa- IN THE HOUSE OF REPRESENTATIVES nies that aren’t hiring. Whose ownership so- ciety is this? HON. ALLYSON Y. SCHWARTZ Thursday, May 12, 2005 Democrats and their allies at AARP in the OF PENNSYLVANIA Mr. MENENDEZ. Mr. Speaker, today, I am Social Security debate have offered little in IN THE HOUSE OF REPRESENTATIVES proud to join my colleagues in the United the way of real solutions. John Rother, di- Thursday, May 12, 2005 rector of policy and strategy for AARP—de- States Congress and world leaders in cele- fending his hilariously exaggerated, slam- Ms. SCHWARTZ of Pennsylvania. Mr. brating the creation of the State of Israel on dunk anti-personal account TV ad cam- Speaker, I rise today on Yom Ha’atzmaut to this 57th anniversary of Israel’s Independence VerDate Aug 04 2004 01:54 May 14, 2005 Jkt 039060 PO 00000 Frm 00018 Fmt 0626 Sfmt 9920 E:\CR\FM\A12MY8.099 E13PT1.
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