VOLUME No: 67 Issue No:2

Washington, D.C. - Nov 19, 2004

Cabinet Reshuffle

As of this Friday six Bush Cabinet officials have relinquished their posts in the White House, citing a variety of reasons. There are three White House nominees for the open posts. Pending Senate confirmation, National Security Advisor Condoleezza Rice will supercede Colin Powell at State Department, Assistant to the President for Domestic Policy advisor is in line for Rod Page's old job at the Education Department, and White House Counsel Alberto Gonzales will take over for John Ashcroft. Replacements for the Secretaries of Agriculture, Commerce, and Energy have yet to be named.

Full list of the Cabinet Changes (italics indicate new member):

Social Security Bill Offers Incentives for Voluntary Privatization

A social security privatization bill brought before Congress last July by Senator John Sununu (R-NH) and Representative Paul Ryan (R-Wis) has been reenergized by the Bush Administration's reelection to the White House. Citing the President's use of privatization as a campaign issue and given the success of the Republican Party in the election, proponents of the Sununu-Ryan bill believe the time is right for an overhaul of social security. With a solid majority in both houses of the 109 th Congress, conservatives have a good chance to make headway for this bold topic.

The proposed legislation would allow workers to voluntarily transfer up to 10% of the 12.5% social security tax into private accounts and would guarantee continuation of entitlement benefits at current levels. Financing this transition has been the selling point for the bill's proponents since social security operates on a pay-as-to-go basis and allowing people to take their money out of the system would result in immediate shortfalls. The Sununu-Ryan answer is the redirection of federal funds from wasteful or counterproductive programs into social security. When combined with limits on federal budget growth to inhibit addition federal spending, backers say the plan will cover the shortfall and will lead to economic growth from increased private investments. According to conservative groups, the Sununu-Ryan bill would result in a social security surplus by 2030.

Opponents of the bill say that even with caps of federal spending and the elimination of other programs, the government will still have to borrow trillions of dollars to keep social security from going bankrupt, negating any gain in private sector economic growth. In the meantime, Democrats renewed calls for a bipartisan plan to shore up entitlement benefits and guarantee the future vitality of social security.

Specter to Chair Senate Judiciary

Despite loud objections from critics, Sen. Arlen Specter (R-PA), it appears the senator will take over the Senate Judiciary Chair from term-limited chairman Sen. Orrin Hatch (R-Utah). Specter addressed some of the criticism he received after commenting on the battles pro-life judges will face during the confirmation process this week by gaining vocal support from his Republican colleagues and Senate leadership. Specter was further encouraged by his meeting with GOP members of the Judiciary Committee, of whom he will need a majority of support to be affirmed. The vote to decide the new chairman will be held in January.