I guess you can’t make everyone happy, and this round went to the hippies.
Mitch McConnell didn’t hear what he wanted to hear about Social Security in Obama’s speech:
McConnell said that when Obama and his chief of staff, Rahm Emanuel, had previously spoken to Republicans, they struck a tone that indicated a willingness to work on Social Security. "That was the place that I hoped, based on what both he and the chief of staff had said earlier, we’d be able to move on a bipartisan basis. He kind of brushed over that issue" in his speech, said McConnell.
The "back-pedaling" McConnell is upset about "comes after several weeks of intense lobbying from liberals" (or as others referred to it, "fear-mongering") on Social Security.
Lindsey Graham says "I think they’re getting pressure from the left." (Ya think?)
I do not believe that it was unhelpful to push hard on this and those that did were not being disloyal or hysterical in getting out front and making noise about it. There is clearly a faction in the administration who see social security "reform" as either something centrist technocrats believe they can take credit for "fixing" (Gene Sperling) and others who want to use it as a legislative bargaining chip (Rahm Emmanuel) . It’s important that those who believe that there has never been a less propitious moment for mucking with the safety net (indeed, we think it should be expanded) are also part of the mix.
As she notes, it isn’t over. Michael Scherer:
Although Administration officials don’t like discussing the problem on the record [no shit -- ed.], the White House has not yet ruled out the idea of establishing an independent commission (outside the congressional committee structure) to look at creating a specific reform plan, an approach supported by many experts as the best way to break the political deadlock.
There is no "political deadlock," there is a horrendously unpopular idea that would trigger exactly what it’s supposed to trigger, a revolt at the ballot box. That’s democracy. So the idea of an "independent commission" would remove many of those nasty electoral repercussions and make it easier to enact something that people really, really hate. Here’s our old friend Jim Cooper, turning up like a bad penny:
"We have to approach the topic very gingerly," Cooper said in an interview, noting the concerns of certain congressional leaders that they will lose jurisdiction with an independent commission. "The key is going to be a required congressional vote, so we can’t duck the problem any longer."
According to health care reform advocates I’ve spoken with who were involved in the privatization battles against Clinton and Bush, they believe that if the administration puts Social Security reform off until after health care is done they will have time to mount public campaigns to oppose benefit reduction. But if it gets offered up as the price of Republican support for a health care package in a "grand bargain," they’re very worried. Everyone feels good about getting the Social Security Task Force killed and Pete Peterson scrapped from his keynote slot at the fiscal responsibility summit, but the NYT report of Rahm Emanuel negotiating with Lindsay Graham behind closed doors sent chills down everyone’s spines.
Here’s my fear. Yes, you can run a successful public campaign against cutting Social Security benefits, but it’s damn hard to run one against a process. If Rahm Emanuel’s "grand bargain" with Lindsey Graham for health care reform includes an "extraordinary process" that "provides for fast track consideration" to deal with Social Security (as Pete Peterson henchman David Walker described it at the summit), the writing will be on the wall, but it will be much harder for people to see.
At that point, the only thing standing between Social Security wolves and their burning desire to shred the social safety net will be Harry Reid and Nancy Pelosi. Cross your fingers and pray they hold.



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we need electoral reform: a multi-party system. not just thugs on one side, robber barons on the other, and blue dogs with one foot in each camp.
Hey Jane!
Call me shrill if you will.
At least I’m not a shill. ;->
Thanks for pushing hard on this Jane. To my chagrin, I was one of those that thought you and Digby were over reacting to things said and unsaid and that it has been hardly a month since Obama took office and would behoove us to give him some leeway. The reports in the last few days have shown clearly how right you both were. Your vigilance has paid off, for now.
Can anyone get inside the heads of those who want to eliminate SS?
Why do they give a shit if everyone gets some crumbs from the system that enrichs those with already high wealth and incomes? Do they want to see beggars in the streets. Aren’t there enough homeless now? What is it with them?
It’s good to have an idea of what the enemy is thinking. What are they really thinking is my question. What are their (emotional?) needs that they can’t fulfill with what they already have?
Thanks, Jane. Count me as one willing to hit the streets over this. Assholes like Linsey and Mitch can not be allowed to mislead the public about the health of Social Security.
slightly OT:
why lenders won’t slash mortgage rates.
“because it will affect those with mortgage securities.” yes, those very people who screwed things up.
watch from the 49th minute:
http://www.c-span.org/Watch/wa…..ss-A-40831
in 2008, mortgage defaults were around $250 billion, just a portion of the money bush and paulson gave the banks.
I thought the original plan was to shift the pot to Wall St. to manage, W’s privatization. Not sure what’s going on now, but would note that some substantial portion of Obama’s campaign funding came from Wall St., some say 60%.
.
“conservatives! HAH! Here’s what THEY say all their stupidity is based upon: Some old dead white guy. Gawd he’p ‘em!
.
Considering that many, like myself who are part of the post WWII baby boom, who will be retireing in a relative few years, due the damages of age or the permanent lose of jobs from the Bush economic stimulus, – many if not all or us lost upwards of 75-80% of our retirement and savings in the first Bush administration bust and have already lost 50% or more of what was left in the current Bush bust and will have to continue to work full time untill we are forced to give it up.
I do not hear anyone on government or anywhere else talking about what is going to happen to the return on our investment (withholdings) that the government has taken with promises to repay sufficiently to be able to live and be healty for a reasonable number of years past my retirement, whether forced or voluntary.
They’re like bloody children.
“Can’t have.”
“Want!”
No, I said CAN’T HAVE.”
“WANT!”
The greed factor is appalling. It seems many of the “haves” just can’t see any point either in sharing, or in admitting they have “enough”.
I can’t watch Mitch McConnell any more without endangering my tv screen. He has no share to spare. He wants the whole pie to himself. Disgusting.
It is not surprising that those senators or reps from the former Confederate states are those most opposed to having a safety net.
Graham and McConnell are still upset over the outcome of the Civil War.
I’m guessing they think that over the years, slavery could have been made more acceptable, showing its humanitarian and compassionate face. Kinda like Barbara Bush saying refugees from Katrina never had it so good.
“Do they want to see beggars in the streets”
Probably, yes. It gives them that warm Christian feeling of superiority.
What they want is slaves who labor for the smallest amount of subsistance pay possible, and with it absolute control of the slave class.
They they can live lke the Pharaoh’s and Tsars.
Thank you (((Jane))) for your courage and savvy and dogged determination, and most especially your caring heart.
Thank you for this blog!
true. painful to contemplate but probably true. *sigh*
The “shared sacrifice” meme will surface over this. The “old farts” (like me) will be expected to embrace any compromise in the guise of what’s best for the country. In the meantime the fools that got us into our current debacle will eagerly wait for their cornucopia of riches to be turned back on.
there’s a reason “free trade” was put on a “fast track.”
but if anyone can expose the invisible ink for what it is, i think it might be the person who made fitz a sex symbol.
An up to date picture for the poster. He should be a happy
dogdope.Here’s what Open Secrets has on the funding:
http://www.opensecrets.org/pre…..=N00009638
As always, I take essentially everything with a bucket of salt…but it’s a start.
“Why do you think they call it dope?”
Dogged determination . . . good one!
Shrill liberal here, reporting for duty. Oh, good morning.
Pelosi and Reid; just the people I’d pick to watch my boney ass.
Call me cynical, but if I had to guess, I’d say that somewhere along the line Wall Street is hoping to get their hooks into some of that SS money.
Plus ca change, plus c’est la meme chose.
Listening to the House hearings. Barney Frank sez less focus on SS and more on military, and takes a swipe at star wars.
Yep, that was the trust of my comment, though Obama’s still holding his cards close to his vest, so one can only guess at this moment.
I suspect you’ll see the arguement that it’s a much better time to launch SS privitazation when stock prices are low, than when they were high under W.
Yes wallstreet wants to skim all savings and investments but I think it’s deeper than that. The conservative mind wants workers to be scared, it makes us docile to point.
I hope we may be approaching the end of docility. If the veterans at the march on Washington had had twitters…..
Watched the documentary on Howard Zinn last night called “You Can’t Be Neutral On a Moving Train” which reminds us how entrenched the uber rich are with their grasping white knuckles, and how they have *always* thought the poor are poor because they deserve to be poor. It’s always going to be a fight with these bastards.
Yes, Shock Doctrine is part of it.
I keep meaning to mention that I love your moniker! Way clever.
Ah, merde!
Lindsey Graham says “I think they’re getting pressure from the left.”
damn straight.
The Confederates don’t want to bring back slavery because you have to feed and house the slaves. They want the post civil war share cropping system restored where the workers are responsible for their own food and housing. When they are no good for work anymore, there will be plenty of replacements.
Local government officials in Virginia are quoted during the 1920’s as being against public schools because where would you get cheap farm labor if they all got educated?
Quote from Senator Byrd of Va in the 1930’s. “50 cents a day and a pail of lunch is good enough for any man”
This is the way Republicans, Conservaterians and Blue Dogs think.
There is no “political deadlock,” there is a horrendously unpopular idea that would trigger exactly what it’s supposed to trigger, a revolt at the ballot box. That’s democracy. So the idea of an “independent commission” would remove many of those nasty electoral repercussions and make it easier to enact something that people really, really hate.
This is exactly what Philadeklphia’s Mayor Nutter is doing with regard to highly unpopular budget cuts to libraries, fire engines, and public pools. he convened a series of budget forums, run by an outside group called Penn Project for Civic Engagement, in which ordinary citizens decide what to cut and what to save.
The entire process is bogus of course: the moderators are trained to stifle dissent, highly popular options like “progressive taxation” and “tax the banks that got us into this” aren’t even on the table or up for discussion. But the mayor hopes that, at the end, when he makes the cuts he’ll make the cuts that “philadelphians chose in these sessions”. in doing so he hopes to “remove many of those nasty electoral repercussions and make it easier to enact something that people really, really hate.”
maybe our mayor and jim cooper can go have a circle jerk together…
In some way Bushy followed in the footsteps of Ray-gun…he took down the US government just like Ronny supposedly bankrupted the USSR. What a patriot. This government is kaput now and if we let them the Republicans can rebuild a new fascist one now.
Where there is capitulation to the pukes’ failed ideology, there is Rahm.
Thanks, Jane, for the good fight.
I’ve always been highly suspicious of Emmanuel since he helped Bush fast track about 4-5 “free trade” agreements before Bush’s FT authority ran out.AND cut his committee out of the process. He’s the most dangerous politician up there for the people’s interests IMO. Emmanuel LOVES the fast track.
I believe Pelsoi will stand firm. Reid….dunno…prolly not
BUT! if they do this without public comment allowed, they will ALL be booted out the door. Fair warning.
Seconded.
Here’s some local news you may enjoy. Someday Minnesotans hope to have 2 senators.
Thanks. Need more soundbytes like that.
Frank seems more competent as an attack dog rather than some one to get productive things done, but we’ll see.
In general, the D congressional leadership is surprisingly me slightly to the upside since the last election (well, Reid not so much).
Jane, I’d be interested in your take on Rachel’s interview of Pelosi.
I want to add my thanks to you and digby and everyone who made noise. As a baby boomer and retro New Deal Democrat, it boggles my mind that the Obama team would even have considered a capitulation to Rethug dreams of wrecking Social Security. Weren’t they paying attention to what happened to W’s supposed “political capital” when he decided to go after us? Or were they counting on “the left” to do just what we did? I keep wanting to be thrilled with Obama, but he keeps making me so uneasy. Maybe that’s best. I learned a long time ago not to trust any of them really. But thanks again to you, Jane. You really led the charge this time.
I think I have asked this before, but can’t remember the answer. Are we saddled with Harry Reid forever? Are Senate Dems in thrall to him? How did he get there and how does he hang on? Because he looks like someone’s favorite uncle? Pelosi seems to be coming around, seems to be emboldened by Dem “successes.” The pile of issues taken off Nancy’s table must be pretty impressive by now. This would be a good addition.
maybe our mayor and jim cooper can go have a circle jerk together…
Not that I’m any kinda expert on the subject of circle jerks, but I think it takes more than two….
Ian’s upstairs with healthcare, gang.
David Gregory’s dance partner, MC Rove is back to blowing racist dogwhistles in the Murdoch Street Journal.
Yes Karl, Obama is “lazy”.
http://online.wsj.com/article/…..78287.html
-G
Thanks for the post Jane. I’m not as worried as you. I think the WH is courting disaster here. They can’t separate their desire to cut benefits from the backdrop of bailing out corrupt and greedy bankers. It’s all one big mess and people are paying attention. People are already deeply unhappy about the bank bailout and what appears to be Japanification as Krugman put it last night on KO. We are supposed to keep bankers fat and happy, while being told we have to suck up Social Security cuts and reduced Medicare payments? That is not gonna fly. Obama got elected to change course from failed Republican policies. If he insists on surrounding himself with an economic team that sees nothing wrong with those policies and tries to ram “entitlement reform” down our throats, he could easily find himself out of a job in 4 years — especially if Japanification keeps the economy in the crapper for his entire term, which appears likely. The question is, are there people around Obama willing to tell him that his Republican love-fest is going to be politically problematic for him? We’ll see…
AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen Hamsher and the Firepup Freedom Fighters:
Now I appreciate your leadin the effort to keep Obama “honest’ and not let any political swindles er shell games be played out with fundamental issues like Social Security…however, I am wonderin’ what your continued efforts in this regard have taught us about Obama and the fundamentals that motivate him. Have we learned through incredibly good political reporting and push back, that Obama really doesn’t have a base of social values and programs that he is unwilling to compromise? Have we learned that Obama is really politically stupid, or not unlike Bill Clinton, so convinced of his own superior intelligence and political skills that he thinks that he can get away with sellin the farm before anyone figures out that the livestock is already gone? Or have we learned that Obama really has no fundamental values or “vision” beyond his own immediate success?
I would like you to give us a half time report here, Sister Jane, what have we learned about Obama and where are we on the road to where most of us know we need to go with regard to Social Security and healcare reform…or has Obama left us in the garage?
KEEP THE FAITH AND PASS THE AMMUNITION BUT DON’T SHOOT ANYMORE ‘TIL WE FIGURE OUT WHO THE ENEMY IS!!
I think the words “sellout” should be attached to any mention of Social Security “reform”.
With depression on us, this simply isn’t the time, and that Obama has put SS on the table now indicates that this is all about a sellout.
Why do we need a blankety-blank “grand bargain” to get health care reform? The Democrats have heavy majorities in the Congress and the President is a Democrat. If the Republicans try to block health care refrom via that law that requires a supermajority vote to increase the deficit, then they can just repeal that law. (It’s a bad one anyway.)
If the Republicans try to filibuster health care in the Senate, the Dems can mount a public campaign to break it. If that doesn’t work, they can threaten the Reps with the “nuclear option” they way the Republicans did on getting their rightwing judges approved. If a new “Gang of 14″ deal doesn’t do the trick, then the Senate Dems can just abolish the filibuster rule and approve the thing.
I know the filibuster is a sacred Senate tradition and yadda, yadda. Is it more valuable than saving Social Security from reactionary billionaire plutocrats like Pete Peterson? Not even close.
And, in reality, the “Gang of 14″ deal that gave the Republicans their judges effectively abolished the filibuster anyway. Save the filibuster? Or save Social Security? For most people, a very, very easy choice.
It may not be necessary to hit the streets at least not yet, but there is no question social security is under attack. Elections notwithstanding, no one knows where anyone stands. “Liberals” “won” the last two elections, but you wouldn’t know it from the actions of our elected officials. Jane commented a week or so ago how difficult it is to translate blog comments into something meaningful in the sense of having a political impact.
How, for example, might we inspire people to step into the street in front of their houses as a sign of support or opposition. Suppose whole neighborhoods came out, citizens gaining strength from seeing each other on the same side of an issue. That sounds like pie in the sky or something equally unobtainable, but perhaps not. Suppose we create a wikipedia like site for social security, all kinds of links with every bit of information we can muster. There might also be a way to organize on line by towns and cities.
Social security is a perfect issue. No one outside of Washington wants it reduced–think of where we’d be now if social security didn’t exist-so there’s interest and anger. Suggestions of lock boxes won’t do it when Congress holds the key. They embezzled from social security in the first place. How do we the people fight city hall? That’s the big issue. I don’t think faxes and phone calls to representatives are the answer.
Yes, and they are only 80% of the country.
Indeed, open secrets shows a substantially lower contribution than ECahn suggests. Of course, maybe all those lawyers and retirees and others are simply stealth “Wall Street” donors. But I doubt it.
My guess from looking at those figures is that Wall Street and others in the Financial, Real Estate, Banking Industries gave about 10-15% of Obama’s total contributions. And a lot of those were simply average folks (clerks, tellers, secretaries, etc.)…not Executives or PACs.
In this morning’s House hearing which was taking comments from economists to follow up on Bernanke’s testimony yesterday, Galbraith, Tayor and Binder sp?? testified.
On the Social Security question only Galbraith stood up and told them that SS has a surplus, is the wrong area to look for “fiscal responsibility” cuts, would threaten the well-being of elderly who have been most financially hurt by the financial meltdown, would be easily boosted by a cosmetic use of raised estate taxes or other tax increases.
Galbraith thinks that any focus on SS is a distraction from making much stronger inputs to get more jobs going in infrastructure, by focusing on Dodd’s infrastructure bank whose focus will be to finance the future of energy and climate change projects.
In the same hearing the two other economists took the position that the world needs to show that the US can demonstrate fiscal responsibility by using the ‘low hanging fruit’ of SS, clipping benefits now, raising revenues later as did Greenspan in 1983. Binder sp? actually had the audacity to call solving the banks crisis of today more important than the status of the only working social safety net we have.
In an other representative’s question ( I think he stood as Chair while Frank went to vote) the experts were asked if they thought that SS surplus could be used to finance the efforts of the Federal Reserve and Treasury, to buy up legacy assets and establish bank reserves.
Dr. Binder replied that in a sense that is already occurring since all revenues start out in the same pot. Dr. Taylor replied that banks are already swimming in their reserves due to fear of lending any. Galbraith’s opposition to this was firm: Do not draw on Social Security! If you want to put SS surplus to work in this meltdown, reduce payroll taxes and give more benefits to SS recipients.
Got to go get my automobile to the inspection station . Bye.
Yeah! Finally I am branded a hippie!
@54:
Thanks for sharing what Galbraith said. He sounded just like Jane.
I think that there are some that see the actuarial analysis and are legitimately concerned about how to keep paying benefits. Trust funds (”lock box”) money has to come from general revenue due to budget shenanigans… this makes some worry about the tax burden when benefits have to be paid out of trust funds. Then there’s the longer term issue of how to pay benefits once the trust fund runs out in 30 some years, and small changes make a big impact over the long term (compounding needs time to work – play with retirement calculators and see how $500 over 40 years compares with $2000 over 10 years). While there isn’t a crisis in Social Security now it does make some sense to think long term.
Eliminating the safety net is us projecting a wingnut fantasy. There’s been quite a bit of railing against Diamond Orszag, without noting that it fixes an immediate problem – low earner benefits don’t provide even poverty level income to beneficiaries. We really need to make the safety net at least provide poverty level benefits NOW, as in immediately. Diamond-Orszag brings minimum benefits to poverty by 2012.
Cutting high end benefits to pay for increased low end benefits is to me a worthwhile and progressive trade off. I’ve posted my prospective benefits versus those of another low income worker starting at age 69 in 2030. I’d be getting about $2340, the $14,000 a year worker gets about $780. I think raising the $780 to $1000 or more is much very worth having my benefit cut to $2000, I’d do it in a heartbeat.
The politicians who think they can fool around with SS need to know that anyone over 65 doesn’t have a lot of life to lose. Our death train isn’t far away so we can be very unreasonable when someone tries to fool with Social Security.
Unless and until Social Security is removed from the “unified budget,” we can safely assume the politicos never intend to repay the trust fund. Therefore, we should all be marching in the street screaming for the end of the stealth income tax on labor that has been in effect for the last 26 years.
At 12.4%, without deductions, the Social Security tax is an huge burden on working people. Only the self-employed actually see the amount on their tax returns, which is probably why Washington has gotten away with this for so long. A worker earning income up to the cap is not in the 28% tax bracket, he or she is in the 40.4% tax bracket!
The unified budget gimmick is a big part of the problem, it’s where the scare number of “$51 Trillion in unfunded liabilities” comes from. Those liabilities were funded, then lent to the treasury to pay other expenses. Paying them back has to be done out of future tax receipts.
There’s a deep fear that those trust fund obligations will be reduced or eliminated by massive cuts in benefits. Trust fund money will begin to be needed to pay benefits in 2017. So in 8 years part of the general tax revenue stream will be dedicated to SS. Politicians are used to having SS in a surplus and having the ability to raid that surplus. In 8 years that’s no longer possible.
Frankly I don’t see how we could have avoided this. A surplus in one tax revenue stream won’t stay in cash, it will buy “safe” investments from the Treasury. And when it is getting close to paying those Treasury obligations back it’s going to force some hard budget choices – increase taxes or cut spending. Cut defense spending. Increase taxes on high earners (both FICA and income taxes).
I am with you in principle and appreciate your gracious attention to detail. Let’s not feed the Blue Dogs by giving them permission not to draw down from the trust fund in advance.
We need to send a clear message to our “alleged” representatives. Social Security is a contract ( which the Republicans view as sacrosanct when it benefits the elites) between the taxpayers and the government. This is not an entitlement – we paid for it! If there is no money in the budget for SS then there is absolutely no money for their pensions, expense accounts or pay raises nor their “single payer” health care. Cut their entitlements before our safety net!
Why should we be treated any differently than anyone in the rest of the world.
as far as the elites are concerned, we shouldn’t. They’ve just been too busy elsewhere up to now.
first they came for……