Cost of Business v. Cost of Doing NothingBy James Hamilton

Congressional Democrats and their minions, imps, and lesser demons are busy these days trumpeting the latest finding from the General Accountability Office: "The Bush administration spent at least $2.8 million traveling around the country promoting its plan to let many people divert a portion of their Social Security taxes into private retirement accounts."

Predictably, key Democrats pounced on the report's release. "Campaign-style events cost tens of thousands to stage and millions of taxpayer dollars were spent to try to convince the American people to support a flawed and unworkable proposal," crowed Rep. Henry Waxman (D-CA), chairman of the House Oversight and Government Reform Committee.

The Democrats' primary ally in Washington, the AARP, piled on: "It would have been better had we been able to spend more time and resources trying to strengthen Social Security for the future instead of on ways to carve out individual accounts," said David Certner, AARP legislative policy director.

Okay. Let's start with Waxman, the one who requested the GAO report in the first place. On it's face, it's clear this information should be made public. Public funds were used to fund the tour so the public should know how much it cost. However, it's also clear Waxman and his aides are driven by political acrimony, not the public's need to know.

More glaring, however, is Waxman's willingness to proclaim the GAO's findings in this report but IGNORE the agency's findings on the future of Social Security, Medicare, and other such programs. What has Chairman Waxman done personally to get Democratic congressional leaders to take a single constructive step toward addressing these program's long-term solvency issues?

And don't get me started on AARP. This organization has done more to derail legitimate discussion on the issue than any other special interest group. The group's leaders in DC talk loudly about opposing significant reform efforts that would allow today's workers the opportunity to invest a portion of their payroll taxes in protected accounts, but AARP offers its own members a whole array of mutual funds in which to invest. Hmm....

Take a look at most of GAO chief U.S. Comptroller General David Walker's speeches over the last few years and you'll see a see a theme running through them: In the coming financial crises, America faces a "financial tsunami" that will "swamp the ship of state."

Walker's very specific. The U.S. currently has over $40 TRILLION in financial obligations to current and future Social Security and Medicare recipients. Where's this money going to come from, he asks. It represents a $400,000 tax burden on every American worker today.

That's real money, Mr. Waxman. Where is your righteous indignation now?

We're listening and waiting, Mr. Chairman.