Bush to press privatization of Social Security

WASHINGTON -- President Bush, facing a chilly reception on Capitol Hill on his plan to overhaul Social Security, said yesterday he would take his case directly to the American people, crisscrossing the nation to galvanize support for partially privatizing the 70-year-old federal retirement system.

"It is very important for us to reassure seniors that nothing changes. I fully understand the power of those who want to derail a Social Security agenda by . . . scaring people," Bush said at a morning news conference.

In the wide-ranging session, the president sought to put a positive light on his agenda and his record on Iraq. As Bush spoke, there were signs of the challenges he faces at home and abroad as he embarks on his second term.

The Defense Department announced that 37 American military personnel had been killed yesterday in Iraq -- the deadliest day for the United States since the war started almost two years ago. Bush yesterday mourned the loss of life, but added that he was heartened by the fact that Iraq is scheduled to hold an election Sunday. "The notion that . . . somehow we're not making progress, I just don't subscribe to," Bush said.

New budget forecasts estimate that the federal deficit will reach a record $427 billion this year, casting doubt on the president's promise to cut the deficit in half.

Two of Bush's high-profile Cabinet nominees -- Condoleezza Rice and Alberto Gonzales -- took verbal beatings from Senate Democrats this week.

Rice was confirmed to succeed Colin L. Powell as secretary of state, but only after Democrats spent nine hours questioning her record and truthfulness. Gonzales was approved to succeed John Ashcroft as attorney general by the Senate Judiciary Committee yesterday without support from a single Democrat.

Bush defended both officials, saying "Condi's a firm believer in democracy," and that Gonzales "will be a great attorney general." Gonzales is expected to survive a confirmation vote next week.

On Social Security, Bush is facing opposition from Republican and Democratic lawmakers who worry about the cost of private accounts and the reliability of benefits for future generations. Democrats are moving aggressively to quash Bush's plan, announcing yesterday that they would hold their own hearings on Social Security.

The president brushed aside the brewing discontent, saying it was constructive that lawmakers were offering their points of view.

"I think it was an effort to get back on the offense, after continuing setbacks in Iraq, disquieting budget numbers, skepticism about his plans for Social Security, and much second-guessing about his inaugural paean to liberty," Thomas Mann, a political analyst at the Brookings Institution, said of Bush's appearance.

Bush did not provide specifics of his plan, which would allow younger workers to put some of their payroll tax money into private investment accounts. Proponents say the system would give people more control over their retirement funds and allow them to earn greater returns than the current system if they invest wisely. Opponents of the idea say it is costly and will weaken the government's commitment to taking care of retired people.

The president hinted that he might reveal some of the details of the plan at his State of the Union address next Wednesday. But Bush, who is facing well-organized opposition to his plan, needs to move quickly or he will miss his opportunity to revamp the program, said Stephen Moore, president of the Free Enterprise Fund and a supporter of private accounts for Social Security.

"The debate has not been going very well for Bush. He needs to provide meat on the bone," Moore said. "The White House has to lead on this; they can't follow. So far, they've been very vague about how the plan would work and what its structure would be."

Bush has begun a limited lobbying campaign with lawmakers. He met Tuesday with Republican members of Congress to discuss Social Security, and met yesterday with the Congressional Black Caucus in a rare meeting with the all-Democratic group.

Representative Richard E. Neal, a Springfield Democrat newly assigned to the Social Security subcommittee of the House Ways and Means Committee, said he did not think the privatization plan would be approved by the House if it were on the floor this week.

Unlike the response to Bush's tax cuts, "there are no defections" among Democrats on Social Security, and some Republicans are also skittish, he said.

Bush would be best off directing his campaign at younger voters, who are more likely to support a partial privatization of Social Security, Moore said.

The AARP, which represents retired and near-retired people, has begun a campaign of lobbying, advertising, and local forums to fight the plan.

While initial response to the idea divides the group's membership about evenly, people grow more skeptical of the idea if they are told that the plans would present more financial risk, said David Certner, director of federal affairs for the AARP. "They're not looking for a radical overhaul of the program," he said.

Charlie Jarvis, president of USA Next -- which he called the "free-market alternative to the AARP" -- said his organization would be contacting AARP members to counter their arguments.

"They are trying to terrorize people into supporting a very illogical position," Jarvis said of the AARP, which has 35 million members.