http://www.progressive.org/conniff9903.htm
The Republicans prodded Jackson about using the government surplus to pay down the debt--wouldn't he rather spend the money? Jackson stuck by the President's ultraconservative economic program: "Reducing the debt obviously gives us more strength; it allows us to save Social Security," Jackson said.
Kemp gently disagreed. Focusing relentlessly on paying off government debt is like saying you should buy a house only when you can pay for it up front in cash, he explained. "I'm in favor of debt to pay for long-term expenditures," said Kemp. "We grew out of World War II's debt. The deficit in 1946 was 50 percent of GNP--50 percent of GNP! But we have had continued expansion. . . . The answer to debt is growth--it's reducing debt as a percentage of the pie, keeping our economy on a growth track. It's doing well today, but I tell you my friend, Reverend Jackson, the actuaries of Social Security are scaring the American people by coming to the conclusion that if our economy slips to 1.3 percent growth over the next three years, retirement will not be there for them."
Here, before he was quickly cut off by Chairman Archer, Kemp let the cat out of the bag: If we continue having even modest economic growth, there is no reason to believe the Social Security system will reach a crisis. . . .