Coverage Issues Arise from Social Security Plan

By Kevin Sweeney
February 3, 2005 12:04 PM

Headlines of President Bush's plan to restructure Social Security carry more than just words -- they translate into important coverage issues for business reporters.

The New York Times: Bush Says Overhaul of Social Security Essential to Avoid Bankruptcy

The Denver Post: "Save Social Security"

The Los Angeles Times: Bush Issues Call to Action on Social Security Makeover

As the centerpiece of his State of the Union address, Bush proposed that younger workers be allowed to invest income into personal retirement accounts by 2009. The timeframe for enacting a plan is a key factor reporters should address.

"The biggest service we can do as reporters day to day is to keep telling the public that it's very much a long process," says Richard Benedetto, White House correspondent for USA Today. "What may be talked about today might not be a final bill for years. Most everything Bush talks about requires legislation."

And that means reaching across the aisle. Don't fall into the trap of playing into obvious divides. Republicans are likely to be steadfast in their support for Bush's plan while Democrats will oppose such a change. No surprises there.

While politics deserves coverage, they should not dominate the issue at hand. Report on substance.

"Pay less attention to the debate," Benedetto says. "We report the fight between the parties but don't pay enough attention to the details of the plan."

Social Security is a wide-reaching issue that provides an opportunity to reach out to all of those in your community in order to get their take.

"Since so may people have access to 401(k)-style programs through work, that should make the debate a bit more relevant to the public," notes Russ Wiles, financial writer and columnist with The Arizona Republic.

There are generational issues. Bush told Americans 55 and older that the Social Security system will not change for them. For younger workers, he warned of serious problems to come.

Polls show that elderly workers are reluctant to accept the restructuring Social Security. Younger workers are more open to the possibility of individual investment accounts. "The generational story is so important," Benedetto says.

A potential business story would contrast and compare how the young and old in your community view a change in the current system. Readers will be able to relate to others in their community facing the same prospects.

Aside from Congressional support, President Bush's plan needs revenue. His agenda includes setting aside up to 4 percent of payroll taxes into conservative bonds and stock funds so that money can grow at a fast pace.

"I think the key is to have sources lined up who listen carefully to what Bush is saying," Wiles suggest. "These would include financial advisers, economists and perhaps some real people."

References to determine the financial efficacy of restructuring Social Security include the Office of Management and Budget and the Congressional Budget Office.

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Copyright © 2008 Donald W. Reynolds National Center for Business Journalism