Inouye criticizes
Bush’s reforms

A Social Security plan is too costly
and risky, says the U.S. senator

U.S. Sen. Daniel K. Inouye says he doubts President Bush will be able to push his Social Security reforms through Congress this year.

Where to watch Island Insights, a co-production of PBS Hawaii and the Honolulu Star-Bulletin, highlights the issues of the day. University of Hawaii professor Dan Boylan and Star-Bulletin reporter Richard Borreca alternate as program host. The program is broadcast on PBS-Hawaii on Mondays at 7:30 p.m.

While Bush is urging changes to the federal government's retirement plan to allow workers to invest some portion of their retirement funds in a stock-market account, Inouye says the plan is risky, costly and lacks the support of Republicans.

"The president is not going to have an easy time with Social Security; in fact, he may not make it," Inouye said.

Hawaii's senior Democratic senator made his comments during the taping of the PBS show "Island Insights," which is co-sponsored by the Honolulu Star-Bulletin. The broadcast will be shown at 7:30 p.m. tomorrow on PBS.

"Before you make such a massive change, I think it would take a colossal study," Inouye said. "One cannot help but conclude that maybe he wants to dismantle Social Security."

A stock-market plan for Social Security would have risks, Inouye said, noting the dangers of having millions of retirement accounts involved in investments such as the failed energy company Enron.

"If we had invested in Enron, where would we be? I don't think we would be too happy, and what would government do after that?" Inouye said.

The Bush plan also doesn't address the costs to move from the existing Social Security system to a new plan, Inouye said. He estimated the cost at $1 trillion.

"When you see the number of influential Republicans speaking up against it, I'm beginning to see doubts. They are quite concerned and frankly afraid of what it would do to them in the polls," Inouye said.

The Center for Budget and Policy Priorities, a liberal think tank, has estimated that the plan would add about $1.4 trillion to the national debt over the first 10 years.

"All told, the plan would add $4.9 trillion to the debt over its first 20 years," according to the center.

Brennon Morioka, Hawaii GOP chairman, says he thinks the public will support Bush's plan.

"The president is giving the people a choice. Those who are now in the system or will soon be collecting Social Security have the option to stay in the system.

"But to turn a blind eye to the troubles with Social Security is not being realistic," Morioka said. "We need to act now."

"There has been so much talk over the last 10 years and nothing has been done," Morioka said, calling Bush "a man of action."

"I think it is time to act, and I applaud the president for his decision. I think Social Security as it is has served its purpose. Times change, people change and technology changes, but often government doesn't change with it," Morioka said.