Posted on 12/05/2005 12:01:51 PM PST by libertarianPA
KERNERSVILLE, N.C. - President Bush called on American businesses on Monday to live up to their pension promises, saying too many companies are not putting away enough money to protect the retirement benefits of their workers.
"My message to corporate America is you need to fulfill your promises," Bush said. "When you say to a worker, `This is what they're going get when they retire,' you better put enough money in the account to make sure the worker gets that what you said."
In a speech on the economy, the president said federal rules governing pensions are confusing and misleading and allow companies to technically play by the rules without funding the promises they make. In the end, taxpayers wind up footing the bill because of federal pension insurance, he said.
"So Congress needs to straighten up these rules," Bush said. Members of his economic team said pension-reform legislation moving through Congress is not tough enough. "And I'm not going to sign a bill that weakens pension funding for the American workers," Bush said.
The president made his remarks in a speech before a friendly audience at the Deere-Hitachi Construction Machinery Corp. in Kernersville, N.C.
Trying to calm Americans' anxieties about the economy, Bush said the economy is growing and added 215,000 jobs in November. He called on Congress to extend tax cuts that are due to expire, and urged passage of long-pending health and energy legislation.
"This economy is strong and the best days are yet to come for the American economy," Bush said.
Bush's approval on handling the economy was at 37 percent in an AP-Ipsos poll in early November, the lowest rating yet on the economy. More recent public polls have shown a solid majority of Americans have a pessimistic view of the health of the economy these days despite signs that it has been gaining strength after blows delivered by the hurricanes this fall and a spike in energy prices.
But public opinion analysts have suggested that uncertainty about the war in Iraq is affecting the public's mood in other areas, such as their view of the economy.
The administration went on a public relations offensive, with Treasury Secretary John Snow and Commerce Secretary Carlos Gutierrez planning speeches on the economy later this week. Snow, Gutierrez and Labor Secretary Elaine Chao wrote a Nov. 21 op-ed piece in The New York Times about pensions problems.
The article said legislation emerging from Senate negotiations would relax rather than strengthen funding rules for pensions, while a bill moving through the House was weakened by the long transition period it allows before tighter funding requirements take effect.
"Unless these bills are strengthened, they could result in weaker pension funding that increases the potential that workers will lose benefits and taxpayers will have to bail out the pension insurance program," the article said.
"It's no secret that some companies don't want to pay more to support their pension promises," the article by Chao, Snow and Gutierrez said. "It's also no secret that labor unions would rather bargain for new wages than ask companies to fund benefits their members already have."
"But even if the pension insurance system picks up the bill if promises can't be kept, rank-and-file workers — and potentially taxpayers — ultimately pay the price for this behavior; just ask any United Airlines retiree whose pension was reduced to the maximum federal guarantee," the article said.
"Similarly, responsible employers are harmed, because their insurance premiums must be increased to pay off the pension insurance agency's deficit," the article said. "We must not kick this problem down the road by extending that temporary relief while further postponing reforms. The problem continues to grow and more workers' pensions are at risk."
Then what's the point of calling yourself a Republican if you're not first and foremost an economic conservative.
You might not begrudge him. But I do. I begrudge him big time, along with that faux Republican House of Representatives.
I'm still believe principles are worth fighting for. And if our leaders aren't willing to do that, we need to stop giving them a job every election.
Do you suggest that Republicans "censor" the fifth column of government -- the MSM? would that make you happy?
Seems to me that his position is eminently conservative. Make a deal, keep the deal.
Get rid of the tax code, Mr. President, and this problem will virtually disappear overnight.
Yeah, that's the ticket! It's the media's fault. And Bill Clinton too! And Jimmy Carter! And Hillary!
Where the h-ll did that come from? I suggest the President fight for conservative economic values.
Are you happy now?
Matter of fact yes. It's unconstitutional and not a power of the national government
Or maybe this is an attempt to fix SOMETHING?
Ah, yes. The national government 'fixing' something. I look back with fond memories of how many things the national government has 'fixed'. It's good to see 'conservatives' so adamant about the national government getting involved in what is a state issue at best. But that is what Republicans have always been good at isn't it? And selling it as conservatism the entire time
Whatcha getting so upset for? Didn't you describe the President as being "just" like the Democrats? Er, not a conservative or something like that?
Rolling On The Floor, Laughing My Abs Off.
Well we just had to 'win back the Senate'. It was an imperative. Exactly why it was an imperative I have no idea. And I would like to take a moment and once again thank every person who helped 'win back the Senate' by casting a useless vote for more big government political hacks that are more concerned with power than following the Constitution
I'm commenting on the hypocrisy. A President presiding over the worst deficits and the highest national debt in history telling the private sector what they should do.
Listen. The companies can honor their contracts. They can also go bankrupt and throw tens of thousands of workers out of their jobs, without any pensions for any of them. Companies can't tax citizens like governments can.
So, take your pick. Ultimately, the companies should live up to their obligations. But if they do, they'll probably have to fold and eliminate countless jobs. I know they signed contracts. But many were also bullied and threatened of denial of a workforce by unions.
Corporations have hade quite a run. They need to pay attention to their obligations, especially since their perpetual life is ultimately guaranteed by Congress and the White House, and if FedGov ends up with these obligations it will not go well with the evolution of corporate life.
Yes I did.
If you're going to contribute to this discussion. Might I suggest something? Have a point.
Most of the corporations are public. On top of that, they exist at all at the pleasure of FedGov and their charter to existence could be revoked at any time.
But I don't understand any conservative/libertarian winking and nodding at big business braking contracts that they signed. It certainly isn't Bush's fault that they were pushed around by unreasonable union demands but Bush here is giving them an ample excuse to just say NO MAS!
"The national government 'fixing' something."
It's interesting to me when people cling to dogma over substance. Pension funds being under funded is a real issue and a real problem, that left unattended will cost the federal government billions, (pension guarantee corp).
Many states are like Ohio. Ohio's state government is as useless and clueless as it gets.
You're technically correct about who should do what. You're also ignoring what has transpired over the years. The Federal government directs the States by distributing or withholding tax dollars.
But it's more fun to complain about the Feds overstepping their boundries, rather than examine how a problem could be addressed.
How about the income tax? I'm not sure, but I've heard that's unconstitutional as well?
Why even bother with pensions anymore, rather than switching to something like 401(k)s where the worker owns his retirement fund? It makes more sense in a world where workers more frequently switch jobs, anyway.
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