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Social Security and Latinos March 24, 2005


Washington,D.C., National Republican Committee Chairman, Ken Mehlman spoke on Tuesday about a memo he send to RNC members outlining the polling trends in the social security debate. Social Security has become a key issue with Latinos. In a recent study conducted by the Pew Research Center's (PRC) publication entitled "Trends 2005" results demonstrate that Latinos are the largest minority group in the nation. By the end of the year 2004 it has been estimated that Latinos in this nation will total 40.2 million. By the year 2020 according to PRC, it forecasts a large increase of Latinos in schools and in the workplace amounting to half the growth of the U.S. labor force.

Sixty nine percent of the Latino population recently surveyed believes that social security is "in a state of crisis" or has major or minor problems and in turn supports personal accounts. (Richard Fry, Rakesh Kochhar, Jeffrey Passel and Roberto Suro, “Hispanics and the Social Security Debate,” Pew Hispanic Center, 3/16/05)

The Pew poll also found 49% of Hispanics thought that a plan for individual investment accounts of the sort proposed by President George W. Bush was a good idea. (Richard Fry, Rakesh Kochhar, Jeffrey Passel and Roberto Suro, “Hispanics and the Social Security Debate,” Pew Hispanic Center, 3/16/05) Furthermore, Social Security is the only source of retirement income for 41% of elderly Hispanics. (Social Security Administration Website, “Hispanic Americans and Social Security,” http://www.ssa.gov/, 9/04)

The President's commission to strengthen social security found in their "Interim Report", 8/01 p.27 that by the time Hispanic taxpayers are eligible for retirement benefits, "the current social security system would be paying substantially lower returns than in earlier generations." The commission also said that “Hispanics tend to be younger than the American population as a whole and would consequently bear a disproportionate share of the rising cost of sustaining an income transfer system.”

Ken Mehlman said that the public increasingly understand the problem the nation is facing in respect to the social security system as it stands. "As the President and Congress have debated Social Security reform over the past couple of months, certain trends have emerged. Americans have learned more about the problems facing the current system, and thus, are more likely to recognize the need for changes in the future, including Personal Retirement Accounts," said Mehlman in his memo. The latest Gallup poll shows that Americans think Social Security is now the most important domestic issue. At 12%, Social Security has increased by 8% since January and is a greater concern than the economy (10%, health care (9%), or terrorism (9%). "We received a positive response from across the country, particularly from the Latino community. There is an understanding that folks are relying on social security and therefore is more important to modernize and to save it. There is also an understanding that exists today that the majority of Americans polled support personal retirement accounts. Unfortunately there is a gap in wealth between Anglos and Latinos in America. One of the ways we close that gap between Anglos and Latinos as well as between whites and black Americans is to allow all Americans regardless of their income or their station in life to be able to have a "nest egg," added Mehlman.

This "nest egg" will be set up and set aside and invested in a safe and secure mix of bond and stock funds. According to Mehlman one of the most important indication of wealth by family is to determine if they have the ability to purchase bonds or stocks. "Folks who live paycheck to paycheck right now can't buy bonds or stocks, they can’t participate in a 401K, and they can't set out an IRA. A personal retirement account creates more equality in ownership and more equality in wealth in this country, " finished Mehlman.

In general, Wisconsin's young population will be affected if nothing is done. The social security administration says “in 2042, benefits for all retirees could be cut by 27 percent and could continue to be reduced every year thereafter.” (Social security administration website, www.ssa.gov/qa.htm, accessed 1/28/05) The median age of Wisconsinites is 36.0 years old approximately 2,595,553 (48.4%) Wisconsinites are aged 34 or younger. (U.S. Census Website, www.census.gov, Accessed 3/21/05)

Reprinted with the permission of El Conquistador News

By: Camille Solberg