Usual Demagoguing.(ISSUES & INSIGHTS)(EDITORIALS)

Social Security: The Democrats are trying to frighten old folks again. And, as usual, they're distorting the real picture.

The Democratic National Committee has mounted a fund-raising campaign attacking President Bush's plan to let younger workers invest part of their payroll taxes in private markets. The large mailing was sent to senior citizens before the Sept. 11 terrorist attack, the party says.

To characterize the letter, signed by Party Chairman Terry McAuliffe, as misleading would itself be an act of dishonesty. While never allowing that Bush wants stock market investment to be an option for young workers, the letter claims the president wants to move as much as $1 trillion from "safe, interest-bearing accounts" to Wall Street, according to The Associated Press, which obtained a copy.

First, the Social Security trust fund is far from being safe. In fact, no trust fund actually exists. And even if it did, courts have ruled that once the money is in the Social Security system, workers have lost their claim to it. It's doled back to them -- with little or no return on investment -- at the government's discretion.

Second, Bush wouldn't move anything. He simply wants to set up a way to reform the dying system and would let workers escape it if they chose to do so.

Third, the interest on these accounts stems from agreements by the government to pay Treasury rates to the trust fund on the money coming into it. And where does the government get the money to pay this interest? That's right, the same people -- taxpayers -- who are allegedly to benefit from the Social Security system.

The McAuliffe letter also ...