The latest installment of the neocons’ efforts to privatize everything they think they can make a buck from involves throwing around Big Scary Numbers:
The shortfall between the promises the government has made on Social Security, Medicare and other benefit programs is $45 trillion over the next 75 years, up nearly $1 trillion in just one year, the Bush administration reported Monday.
The administration, releasing the "Financial Report of the United States Government" for 2007, said that the gap between benefits that have been promised and projected revenues is up 67.8 percent from just four years ago, when it was estimated at $26.9 trillion.
This shortfall includes Social Security and Medicare in addition to Railroad Retirement and the Black Lung program.
Ooooh, scary! We should rush right out and cut all government programs! Or turn them over to Big Business! Right?
That’s what the Chicago Boys, the Shock Doctrine folks, want you to do. They want to shock and scare and stampede you into trashing public programs so they can turn them into moneymakers for themselves.
Here’s Dean Baker with some reality and context on the Big Scary Numbers that the Bush Junta is waving at you:
Suppose the news reporter had told us what this number is — the projected shortfall for Social Security and Medicare for current participants, under the assumption that no one else ever starts working in the United States. The $45 trillion is the discounted (using a 3 percent real interest rate) value of this projected shortfall.
I don’t know a single economist anywhere who thinks that the U.S. economy is going to stop having new workers. There are a lot of kids in the schools who will eventually graduate, at least some of them plan to work when they are adults. So this number does not sound very scary on its face since it has nothing to do with anything we will see in the world.
How about telling listeners why the number grew by $1 trillion from 2006 to 2007? I don’t recall any big boosts in SS benefits approved by Congress. The reason for the growth is that we are measuring the shortfall in 2007 dollars instead of 2006 dollars. 2007 dollars are worth about 3 percent less than 2006 dollars due to inflation. Are you scared yet?
Ah, but the bogosity doesn’t end there:
…the growth in projected spending over the next 75 years is overwhelmingly due to the government health care programs, most importantly Medicare and Medicaid. In other words, the scary stories of government deficits are in fact scary stories about health care costs being out of control.
Funny thing: Health care costs, which are out of control in the US (to the point where they’re rising twice as fast as wages), aren’t out of control in places with socialized medicine. You know, like Canada, where car makers like Toyota are building new plants instead of in America, because in the US health care costs make up around $1500 of the cost of each car that rolls off the assembly line. But the privatizers don’t want you to know about that.
The amount of bullcrap the privatizers have slung over the years is amazing. Apparently their new trick is to conflate Medicare (which is in trouble — that’s why the privatizers want nothing to do with it) with Social Security (which is not).
Why is Social Security safe? Because the sky-is-falling projections used by the Trustees are based on unrealistically gloomy economic forecasts (less than 2% per year forever), as if we were going into a permanent recession or depression. The reality is that even with growth that averages below-par — 2.7% — Social Security never runs out of money. Ever.
But get this: In order to convince Americans to destroy Social Security and hand their pensions over to the brokerage firms, the privatizers tout phenomenal rates of return on stock-market-based accounts of as much as 7% per year. These rates are possible only if the economy is growing at 1998-peak-boom-year levels every single year to the end of time. So the privatizers aren’t just arguing Permanent Recession — they’re also arguing Permanent Boom. At the same time!
Verily, ’tis a Bogosity Trifecta of such proportions that it threatens the very fabric of the space-time continuum.



76 Comments





Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About Firedoglake
PW!
Hi, PW!
BIG SCARY NUMBERS: http://nationalpriorities.org/cms/costofwar
…and getting bigger every second! PEACE!
I told them downstairs that we’re up here; now to read the post!
Do these slimebuckets tell the truth about anything?
It’s like that old lawyer joke: How do you tell when a lawyer is lying? His lips are moving. How do you tell when a right-wing scuzbucket is lying?
More from the Reid interview on the NewsHour:
Reid: I want to work with Mitch McConnell, I want to work with the Republicans, I want to work with George Bush. If we don’t accomplish a lot next term, it won’t be my fault.
Joe Lieberman is a friend. He is a good Democrat. He votes with us on everything except the war. Joe Lieberman is easy to work with.
No mention, not one of Dodd and the FISA fight.
This tells you all you need to know about Harry Reid. He is two thirds in the Republicans’ pocket before the bargaining starts. Even so if this is not enough, it’s not his fault. What A Democrat! Just like Joseph Lieberman.
All the more reason he needs to go as Majority leader.
No.
Simple answers to simple questions.
Reid is has every ounce of integrity one might expect from the Senator from Nevada.
STOCKHOLM SYNDROME. Reid is Patricia Hearst. I can just picture him in the Democratic caucus room, shouting:
“I’m Tania. Up against the wall, motherfuckers.”
A few billion here a couple of trillion there. $12,000,000,000 per month for the Bush war. That’s 12 bil a month folks. What’s the big deal. I gotta run. Goodnight.
Aloha, OKK!
Harry Reid: Hero of the Bush Revolution
http://patriotboy.blogspot.com…..ution.html
MILLIONS??? With an ‘M’??? http://bildkat.googlepages.com/MillionswithanM.wmv
Ooh, the Year in Review of Special Comments, on KO!
Special Comment tonight!
I think Jeb Bush should run our privatized SS pension fund. After all he and Enron did such a bang up job in Florida.
This is one for the DVD recorder! Will take it off the TiVo when it’s over. Make copies everyone, send them to your KoolAid drinking relatives.
Good idea – thanks!
Dang, they still send a shiver down my spine, even having perused them many times since they were first aired…
Has Bush called for another surge? Or is Keith talking about the last one. I haven’t seen anything about another surge.
Republicans can’t do math, period. They are geniuses lying about it though.
Medicare is part of the Social Security Administration but its funds and those of Social Security are never treated together.
The Summary of the 2007 Trustees Report can be found here:
http://www.ssa.gov/OACT/TRSUM/trsummary.html
There are some nice graphs but I find these paragraphs instructive:
It’s important to remember that removing the income cap on Social Security would go along way toward meeting the 16% SS tax increase suggested. Social Security costs will rise but then plateau. Medicare OTOH is expected to rise to 11% of GDP in 2081 and the trend is upward from there. So yes, it is the problem.
This is a collection of the special comments Keith did through the year.
War profiteering…KO is on it!
OKay, thanks!
Betrayal of the Democrats coming up on KO.
It’s Human Sacrifice!!! Damn Skippy!!!
I just fired off a missive to PBS. Where was the Edwards Christmas ad? Populist, authentic and responsive to the real concerns that we have. Well, I guess they also didn’t cover Romney’s Christmas ad (don’t really know if he has one). Some people, including me, think that Edwards will win Iowa and PBS doesn’t include him, joining the MSM in trying to sideline him. Disgusting really.
THX for the KO heads-up! WOW ~ I wonder how many writers Keith employs? ;-}
Heh, the MSM is too enamored to the Huckster’s meteoric rise… ;-)
So sad to see/hear the Dem’s, in January of 2007, making all of the uplifting promises about ending the war, which they have since that day made no effort whatsoever to fulfill.
David Brooks’ unchallenged claim that Huckabee’s version of populism is
the only one that can sell today in America nearly made me throw up.
This year’s PBS/NPR contribution is going to the Edwards campaign instead.
I’m almost out the door for a long drive up north. Have to finish watching the Olbermann first. Get rid of Pelosi, Reid and HRC. Please.
KO has a book of the special comments.
Well, that makes up my mind… Ron Paul’08: http://www.youtube.com/watch?v=CVuDURUKegI
Replace all of them now. Move for impeachment!! Have a safe trip!
As much as Shrub and Darth must despise KO, I’m sure Reid and Pelosi harbor very similar thoughts… ;-)
What is wrong with GE’s subsidiary NBC…?
What is wrong with GE’s subsidiary NBC…?
If you mean MSNBC, KO, speaking with Bill Moyers, said that it’s very simply a matter of the fact that Olbermann is making them money.
There he is again lying again, bush sucks… GO Kieth! Tell it like it is.
It’s great to watch Keith telling it like it is!!
Most of these entries stroke the heart of liberal minded Americans which is a nice thing. It feels good. But, what we as a nation really need is discussion of solutions that can actually be put in place to benefit the American people as a whole. This and other blog entries would be much more beneficial if we would use our collective expertise to brainstorm practical solutions and then lobby our Democratic representatives to turn them into useful legislation for the American people. This is a marvelous medium for communication. We are not taking advantage of it. Let’s use this technology for something other than venting.
Dang, another example of profit trumping ideology again… ;-)
I can’t believe that’s very persuasive. GE has to make lots more making bomber engines and military junk than it could possibly make on the ads it sells for a show that gets, what, maybe a half a million viewers? This show has to be a loss leader for them. I can’t figure out why they do it except that the viewership is insignificant in terms of what they make in military contracts. They don’t need to swat fleas. YMMV.
We vent but we work as a unit to raise money and provoke thought. Individually, most of us are activists in one way or another in our life outside of FDL.
I don’t remember if you where here on Monday during the Senate proceedings, but to me that was a great way to use this medium (internet). Yes more uses will be found, but remember this is still a new medium. This is the first time so many can get so much information with such a diverse spectrum of thought.
Hey, I’m just reporting what Olbermann said.
Maybe it’s both – with a twist. Olbemann’s ratings are indisputably growing, and his show is quite probably profitable. However, maybe GE can look at the raw numbers – viewership in the hundreds of thousands, a rather insignificant fraction of the population. Additionally, GE can claim some hypocritical credit for promoting an anti-war view, while losing nothing whatsoever on their main and most profitable business – war.
Keith, Keith, Keith…it all makes sense when you change your perspective.
Do a special comment on BLDG7. http://www.google.com/search?h…..gle+Search
Take your sanctimonious bullshit and shove it up your ass. Where do you get off assuming that the people engaged in a discussion here don’t do all of the things you are talking about, and more?
Sheesh, you must be a frigging menace at cocktail parties.
[RBG Note; next time, ya think perhaps there’s a slightly less confrontational way to make your point?]
Completelt OT, and maybe it’s already been discussed.
Courtesy of Roger Ailes ( the good one ):
As in the ancient punchline says, the quality of both MSNBC and TNR just went up.
Another Bilk-Gate a brand new bubble in time for christas. A christmac gift from dog to al neocns since the the housing bilk has dried up, the treasury is gone gone gone
Bushco won’t miss a beat and commit the SS funds for the eternal corporate wars. Wonder what Mark Twain would say. Or was it Will Rogers “never met a man I didn’t like”? He still think he’s on a roll, not toast.
Jay,
not disputing what you are reporting. I just think it’s far more complex than that. Unless and until Keith makes it to the “big time” ie takes over some plum real estate on NBC other than reporting the football games, I think GE can keep doing what they are doing letting him vent to a small but committed cadre of viewers and it won’t get much attention. Try to muzzle Keith and it becomes a big story. Strategically what would you do?
You are welcome to go first with practical solutions. But we cannot “lobby” as well as the K-Street Rats who have infected and corrupted Congress. Stop disrespecting FDL.
The Social Security cap on taxable wages can be raised from the current 90,000 dollars to a higher amount. This is the thing that scares the five percenters the most. They dont want to contribute more than the current amount. In fact, they don’t want to contribute to SS and Medicare/medicaid at all. With Media consolidation, they endeavor to plant all manner of false info into the mind of Joe Sixpack so that he will vote against his own interests again and again. Joe Sixpack is pretty stupid from the dumbing down of his education (also caused by the right wing).
Edited for clarity…
“But we cannot “lobby” as well as the K-Street Rats….” Don’t sell youself short Frank………….
Prof, you’re so tentative. Why don’t you tell us how you really feel? [wink]
Beautiful !!!
Yeah Frank! FDL is is great community to exchange ideas and when needed to rally the pups to call, sign up or what ever else we can do to try and make a difference for the good of all!
RevDeb,
Countdown is I believe the highest rated program on MSNBC and also has about the best ratings in the prized demographic. They caught a ration of cr*p when they cut Phil Donahue loose back a few years ago. It is both good business and good marketing to allow KO his freedom. Tuckery is the loss leader that they carry beyond all reason other than he has blackmail photos on someone high up at GE.
Strategically, I would leave him be, for the reasons that both your #50 and my #45 put forward.
And, if Olbermann were to ever be canned by MSNBC, he’d wind up somewhere with an even larger platform, I think.
But maybe Phil Donahue should be consulted first.
I’m still bummed that Rachel didn’t get hired… 8-(
Bout time someone asks Clusterfuck why he didn’t do damned thing about these problems in seven years.
There is such a thing as being too circumspect.
Eli’s upstairs…
Yeah, Yeah…I can’t stomach Gullianni either. And that’s commin’ from a middle aged womanizing ginny NooYourkr. So it for a whole ‘nother reason (See last comment)
I ran into a guy I hadn’t seen in years. He told me that he was a conservative Democrat. He then informed me that his choice for president is Fred Thompson. We had a discussion that lead to him bashing Clinton(s). I did the best I could with him (defending Clintons – yuck!).
Most of these entries stroke the heart of liberal minded Americans which is a nice thing. It feels good. But, what we as a nation really need is discussion of solutions that can actually be put in place to benefit the American people as a whole. This and other blog entrieswould be much more beneficial if we would use our collective expertise tobrainstorm practical solutions and then lobby our Democratic representatives to turn them into useful legislation for the American people. This is a marvelous medium for communication. We arenottaking advantage of it. Let’s use this technologyfor something other than venting.Edited for clarity…
I’d add this as well.
I’m glad to see this topic. One more data point for contemplation.
Now, in my 72d orbit of the sun, I know I won’t be around to see it all play out. But I do wonder how a given point of view becomes a Republican pwn’d talking point. Some of the sources I read, neither R nor neo-con, would take umbrage at that.
I never paid much attention to the SS debate until some panicky baby boomer called me and my ilk, ‘Unearned eaters’. Such is life.
All I know is I believed the guvmint lies when I got my SS card at the age of 12 … and now, more than ever, no statistic they throw up, especially the good news of late, is worth a damn.
Sorry I didn’t give credit CTuttle
Nah, he said more than that! He said that he thinks some of his bosses also have a conscience.
topic ss trust fund still in sites of rethugs my duess id to prop up wall street
You might like the less political very issue-oriented Washington Monthly blog.
WashingtonMonthly.com
It’s done by Kevin Drum who used to do CalPundit.com
and they focus very much less on politics.
Sometimes this place reminds me of high school.
Thompson’s appeal so far has been that nobody knew what he stood for. That’s mostly still the case. His campaign tactic thus far has been to deflate his opponents by showing up their mistakes and stupidity. In that regard he’s been helping keep the Republican party fractured.
I see no reason to try and convince him Hillary is a good choice. If he opposes her then that’s fine.
If he’s a conservative in terms of abortion or economics or ’small government’ or style, then maybe he’s been in denial for some time and really does fit best with Thompson.
If he can be reclaimed by the Democrats, then you have to wonder which candidate this year might appeal to him. To answer that you’d need to know more about how he feels we need to approach the war, terrorism, the deficit and federal debt, health care reform, immigration and many issues. Fundamentally, if he wants to tackle the war and health care reform, then he’s more likely to be okay with a Dem than a Repub. Further than that and you need to know if he is up for universal health care reform or a mandate-hybrid system and if he’s gung-ho to go after terrorists or wants a more restrained approach. It depends upon what he really wants as to which candidate could deliver for him. You can’t simply force a square peg into a round hole.
Nicely done CT! Charge him next time for such brilliant editing. My great reporter/editor Daddy is undoubtably smiling down on ya tonight! ;~)
Good thread, Phoenix.
This is just more of the bushCo bullshit, as they try to scare enough people into letting them hand the SS lockbox over to Wall St., to try to insulate the crap-shooters from the effects of turning the U.S. Treasury into “Warpimps-r-Us.
F-U-C-K-apostrophe-M. Fuck’m.
Greenspan’s euphemism for housing crisis and social security privatization.
.
There are some interesting side issues to the sub prime housing crisis that are not so generally discussed. Are free markets efficient, as the GOP/corporate mantra goes, or prone to excess and economic dislocation? Who pays for the economic dislocation, those receiving the bonuses prior to the crash or John and Jane Doe? If the total housing market is in effect a commodity subject to ups and downs why were the financial big boys all invested in an ever upward scenario? Who lends trillions collateralized by a commodity with little or no equity margin? Greenspan et al, to some degree knowingly, destroyed the S&Ls so Wall Street could get their hands on mortgage paper. This sub prime crisis is actually Part Two of the earlier S&L takedown.
Also, while considering the effects of Congress, the Fed and Corporate (Bank) America’s destruction of one institution, i.e. the Savings and Loan Industry, ask again why Bush, the GOP and Wall Street say trust us that privatizing social security is a guaranteed boon to our aging citizens.
First, the myth that free markets operate efficiently: In the 60’s, financial institutions’ equity got hammered by overlending to REITs. Then, as a result of a Latin America lending binge in the 70’s and 80’s, several household name banks disappeared via mergers. Followed on by the the S%L crisis which happened when the biggest commercial banks and investment houses talked Greenspan et al into deregulating these economically safe and efficient entities in order that they could get their hands on what would become known as securitized debt or mortgage obligations. Without legislation to destroy the Savings Industry’s niche, what we now call the sub prime fiasco could not have occurred. It is interesting to note that this is actually the S&L debacle, Part two.
My labored point is that the financial big boys go on binges. They regularly wipe out enormous chunks of their equity capital and in so doing they wipe out their lending capacity. If free markets were efficient this would not occur. In this fiasco the financial industry bought crap assets. Forget both the borrower and the broker who made the loans. Billions of these mortgages were known to entail a high degree of risk and yet they were bought at par so to speak. There is no evidence of market efficiency here. The supposed best, biggest and brightest bought junk.
Let’s hear Alan Greenspan’s (hilarious) euphemism on this subject: “Over the past five years, risk had become increasingly underpriced as market euphoria, fostered by an unprecedented global growth rate, gained cumulative traction.” (As I said the big boys, hedge funds, etc bought crap loans.)(Hence ’socialized’ gov’t intervention.)
Another different light that could be shed on the Collateralized Mortgage crash is that, in overview, housing is or became a commodity. I was a lender in the oil patch in the early eighties when the collective equity of the Texas and other Southwest banks seemingly disappeared overnight. A barrel of oil had risen to $26-28 and when it fell to $12, a domino of bad loans left the US Government as the Southwest’s banker.
Leading up to our present liqiuidity crisis, all housing became commodified. It had to increase in price for the sub prime CMO purchase and sale system to stay afloat. What I find interesting here is that there are written and unwritten rules that the financial world follows when retail or wholesale customers or the institutions take a position in a commodity. Common sense as well as in-place regulations mandate that a sensible liquid margin be in hand before, in this case, a person or an industry bets trillions on the price direction of a commodity or particular asset.
A regulator presenting a case for earlier intervention by using this commodity analogy might have presented a simpler, more cogent and forceful argument. Saving John and Jane Doe from resetting mortgages was not an argument likely to get a patient ear from our entwined Corporate America and Congressional decision makers.
And harken well to the underlying economic rationale and philosophy espoused when George Bush, the GOP and Wall Street attempt to entice the public that placing their retirement benefits in security related private accounts is a guaranteed boon to their retirement well being. The banks and the Fed and their Congressional enablers had their way with the Savings and Loan Industry and the results have not been pretty. When they come asking for commissions on the nation’s social security assets ask them to explain that bit about how markets only rise in value.
–cognitorex blogspot–