Ross Perot on Social Security

1992 & 1996 Reform Party Nominee for President


Base indexing on a lower inflation rate

We need a pay-as-you-go government. Each generation must have the courage and discipline to pay its own way.

Who should do the paying as we go? All forms of revenue and expenditures should be on the table-entitlements, taxes, defense, and all the social programs. Everything. That includes something called “indexing,” whereby the spending in certain federal programs is increased to compensate for the inflation rate. More accurate indexing would save big money and help the economy.

Inflation is probably overestimated between 0.7% and 2%, probably closer to 2%. For example, the Consumer Price Index deals with a fixed market basket each month, but does not permit flexibility. If the price of beef goes up, many people switch to chicken, but that is not taken into account.

If the CPI were reduced by 0.5%, in the year 2005, the savings would be $73 billion. Some politicians view indexing as a sacred cow [because it effects Social Security payments], but they shouldn’t.

Source: The Dollar Crisis, p. 92 , Jul 2, 1996

Invest Trust Fund surplus like a pension fund

Q: The Social Security trust fund is projected to be insolvent by the year 2036.

BUSH: The Social Security system was fixed, about 5 years, and it's projected out to be sound beyond that. So at least we have time to work with it.

PEROT: Everybody's ducking it so I'm going to say it: we are not letting that surplus stay in the bank. We are not investing that surplus like a pension fund. We are spending that surplus to make the deficit look smaller to you than it really is. That puts you in jail in corporate America if you kept books that way, but in Government it's just the way things are. That's because it comes at you, not from you. Now then, that money needs to be--they don't even pay interest on it, they just write a note for the interest.

CLINTON: A lot of you may not know this: Social Security produces a $70 billion surplus a year. Six increases in the payroll tax--that means people with incomes of $51,000 a year or less pay a disproportionately high share of the Federal tax burden.

Source: The Second Clinton-Bush-Perot Presidential Debate , Oct 15, 1992

Other candidates on Social Security: Ross Perot on other issues:
Former Presidents/Veeps:
George W. Bush (R,2001-2009)
V.P.Dick Cheney
Bill Clinton (D,1993-2001)
V.P.Al Gore
George Bush Sr. (R,1989-1993)
Ronald Reagan (R,1981-1989)
Jimmy Carter (D,1977-1981)
Gerald Ford (R,1974-1977)
Richard Nixon (R,1969-1974)
Lyndon Johnson (D,1963-1969)
John F. Kennedy (D,1961-1963)
Dwight Eisenhower (R,1953-1961)
Harry_S_TrumanHarry S Truman(D,1945-1953)

Religious Leaders:
New Testament
Old Testament
Pope Francis

Political Thinkers:
Noam Chomsky
Milton Friedman
Arianna Huffington
Rush Limbaugh
Tea Party
Ayn Rand
Secy.Robert Reich
Joe Scarborough
Gov.Jesse Ventura
Civil Rights
Foreign Policy
Free Trade
Govt. Reform
Gun Control
Health Care
Homeland Security
Social Security
Tax Reform

Page last updated: Oct 28, 2021