The politics of Social Security reform.

• Author: Hinchman, Grace
• Position: Washington Insights

The policy issues and challenges facing Social Security reform will require bold initiatives and financial investments if we are to level the playing field between privatization and reducing benefits. Unfortunately, some political realities of this debate must be considered.

First, there is the 5,000-pound gorilla called Enron. Enron has successfully dominated almost every Congressional committee for months, and will continue to do so through the summer. Why? Members believe they can actually do something for their constituents -- and correct or stop future Enrons from happening. There isn't a better formula for action during an election year -- correcting a wrong and doing it on CNBC. Now, to say Congress should do something about Enron is another matter, and one for debate in the years to come.

However, it's important to understand the different political dynamics between Social Security reform and an issue like the Enron collapse. Politically, Enron presents a great opportunity. Members have the chance to provide a "quick fix," complete with sound bite analysis -- where Social Security reform is complicated, bogging down Members with weighty and complex issues of privatization. Or even worse, this issue can comer a Member into declaring his or her views on the need to reduce Social Security benefits, versus the need to raise taxes to continue providing the current basket of benefits.

With Democrats fighting to maintain control in the Senate and Republicans fighting to maintain control in the House -- and with both parties dreaming about taking over both Houses -- Social Security is a radioactive campaign issue.

Second, the "politics" of Social Security reform are not as well developed as the "policy" debate surrounding Social Security. The "politics" here really come down to one thing -- dollars. Without a deficit-free budget, there will be no significant Social Security reform.

However, there are champions for correcting the Social Security imbalance at the margins. One such champion is Rep. Clay Shaw (R-Fla.). His bill, H.R. 4069, the Social Security Benefit Enhancements for Women Act, attempts to correct some financial aspects of Social Security as they affect women.

Nibbling Around the Edges

The bill's total 10-year revenue estimate is less than $1 billion, which says to me that Congress doesn't have the traction to achieve more for women vis-a-vis Social Security. So, Shaw is attempting to nibble around the edges to achieve these...