Did You Know, You’re Too Dumb to Decide Your Own Future?
By Bill Bedor

In the last year, starting with the campaign and culminating with the State of the Union speech, President Bush has outlined his vision of an “ownership” society that, he believes, will transform this nation. The corner stone of that policy is the private account remodeling of the Social Security system started by Franklin Roosevelt in the 1930’s. The Roosevelt approach, and that of the Democrat Party ever since, is that the American public is too dumb and certainly too unsophisticated to plan for their own future and make the important decisions to secure their well being.

Republicans, and the President, think otherwise. Every day, millions of Americans make financial decisions for their own families. Should I buy this house? Where should I send my child to college? Where should I invest my 401(k) money? Today, 52% of Americans own stocks or mutual funds compared to 30% in 1989. If the President’s Social Security reform becomes law, perhaps 80% will now own stocks, becoming the largest investor class in history.

Make no mistake about what is at stake, here. Saving a troubled Social Security system is certainly important and a major goal in itself. But, it’s the political strategic byproduct of that reform which will transform the nation. That’s the truly important outcome. Recently a small business owner was telling the President, who was visiting the business, that his younger employees were more engaged in managing their 401(k) accounts once they see the assets begin to accumulate. President Bush, in response, said, “That’s kind of an interesting thought, isn’t it - when you see it on paper, the value of something, you begin to actually pay attention to what causes values to go up – good policies that enhance growth.” Bush continued: “I mean, people wake up and they look at their account, and say, I’m so sure this person’s policies are beneficial to my being able to earn a better rate of return. You pay attention because it’s their own money.”

Surveys indicate that as little as $5000 in an investment account can change a person’s political thinking. In the 2004 election, people who described themselves as members of the investor class voted 61% for Bush versus 37% for Kerry. Clearly, it’s in the Democrats’ best interest to keep the American people poor, dependent on government, and out of the investor class. Roosevelt started a Democrat dynasty that lasted over four decades by creating a program that made millions of Americans dependent on the government for their financial security. President Bush now has the opportunity to create a Republican dynasty for decades to come by creating a program that allows everyone to own a bit of their own future and gain control of their own destiny. The Democrats will not give up easily. There is too much at stake