Public Employee Press

Part 2 in a series on the threats to secure retirement.
Social Security
Bush plan hits African Americans

President Bush is cynically trying to drag African Americans into his campaign to privatize Social Security by stressing a sad fact and ignoring the big picture.

The administration argues that the Social Security system shortchanges African-Americans, particularly males, because they have a shorter life span than other groups.

It is true that African-American men have a lower life expectancy than other demographic groups. In fact, black male workers can expect to collect benefits for an average of 14½ years, two years less than white male workers.

But nothing in Bush’s plan for private retirement accounts or anywhere else in his policies would
improve the longevity of these workers, and his health care cutbacks would make things worse.

The president conveniently fails to notice that African-Americans are more likely than other groups to need Social Security’s survivor and disability coverage. In addition to providing retirement payments, Social Security devotes about one-third of its funds to benefits for workers who become disabled and children who lose their parents.

In 2000, African Americans — 12.5 percent of the population — accounted for 17 percent of the Social Security disability coverage. African-American children represented 23 percent of all children who received benefits as the survivors of deceased workers.

Bush’s own Social Security task force concluded that his privatization plan would probably cut survivor and disability benefits. Bush’s plan would divert vital funds from those benefits as individuals put money into private investment accounts.

Instead of guaranteeing a specific income, privatization would subject the retirement benefits of all Americans to the uncertainties of the stock market. About 75 percent of elderly African Americans depend on Social Security for half or more of their income after they retire. They would be the hardest hit, because the Bush plan would shatter this pillar of their retirement security.

— Gregory N. Heires