Top Bush Advisor Claims Private Accounts Cost No Money

Astoundingly, the White House is still trying to claim that carving personal accounts out of Social Security will not cost money. Yesterday, Chuck Blahous, Special Assistant to the President for Economic Policy, took questions on the White House website. Here is what Ira from Kirkland asked:

Mr. Blahous, why do we need an expensive new federal program when there are existing options for investing in securities?

Here was Blahous’s response, on behalf of the White House:

Ira, the President has not proposed a new federal program, nor to increase the costs of existing Social Security…The personal accounts that the President has proposed would be fiscally responsible because they would be used to fund retirement benefit obligations that would exist under the current system.

Most everyone knows by now that the private accounts the President is proposing would cost around $2 trillion dollars. Karl Rove himself has said these accounts are non-negotiable. Yet, the White House seems intent on continuing to mislead the American people.