The director of a rural policy organization says privatizing Social Security is dangerous for rural America.
The stock market is not a sure thing, said Niel Ritchie, executive director of the League of Rural Voters, at a Rochester news conference last week. His IRA still hasn't recovered from the stock market dip of a few years back.
Privatization turns Social Security into an investment account, rather than a savings account, he said.
"For many rural Minnesotans, Social Security is the only pension they will ever see," Ritchie said.
Even as many pension funds have run into trouble, Social Security has continued to deliver checks every month to senior citizens, disabled persons and survivors, he said.
The program has kept many senior citizens from being poor in their old age, he said.
The effects of privatization would be felt first in rural America, where the population tends to be older on average.
Rural Americans depend on Social Security income 46 percent more than their nonrural counterparts, Ritchie said.
In Minnesota, 70 out of 87 counties are considered rural, and Social Security accounted for 7.1 percent of the total personal income to individuals in rural counties, according to a study completed by the Institute for America's Future, a coalition of progressive organizations. By contrast, only 3.8 percent of the total personal income to individuals in nonrural counties came from Social Security.
The report estimates that President Bush's proposal would result in a lifetime benefit reduction of more than $227,174 for the average Minnesota worker.
The League of Rural Voters and Americans United to Protect Social Security, a group that represents Democratic-leaning organizations, stopped in Rochester, Austin and Albert Lea last week to encourage citizens to demand that their representatives take a stand on privatization.
The organizations have data showing that even a majority of people who voted for President Bush in the last election don't support private Social Security accounts, said Zach Rodvold, state director of Minnesotans United to Protect Social Security.Agri News
