Could Bush Dip Into “Lock Box”?
President George W. Bush promised through the campaign to maintain the so-called “Social Security lock-box,” which is in effect a promise not to use surplus payroll taxes for purposes other than debt reduction and Social Security reform. But a Business Week interview with top Bush economic advisor Lawrence Lindsey hints that the lock-box could get “picked.” Q: President Bush has said that he wants to keep Social Security surpluses off-limits for current spending and tax cuts. But that would severely limit his options for stimulating the economy in the short run. With the economy slowing sharply, should the government temporarily dip into the Social Security surplus to give growth a boost?” Lindsey: “It’s a question that needs to be asked. The best thing to do to ensure the long-run health of the Social Security system is to have a vibrant economy.” (For reasons why economic growth alone won’t solve the Social Security problem, see Social Security: Is It “A Crisis That Doesnt Exist”?, b
