Looks like Steny Hoyer and his buddies in the Blue Dog Dixiecrat Coalition are getting ready to implement the long-standing fever dream of their Cato Institute mentors and wage yet another war on Social Security. Time to break out the pitchforks!
The last time Social Security was under attack, its attackers claimed that privatizing it — that is, chopping it and its trillions-dollar trust fund into shreds and handing out the pieces to eager brokerage firms — would make it more efficient and provide more money to retirees. However, the disastrous experiences of Chile, the UK and other nations — not to mention the numbers in the last of the Bush plans to destroy Social Security — have shown the exact opposite: America’s evil-bureaucrat-run Social Security has overhead costs of less than 1%, whereas the Bush plan has ten times the overhead, the British plan has twenty times the overhead, and the retirees forced to live under the Chilean plan are seeing as much as a third of their retirement money eaten up by fees due to pension-fund owners more interested in turning a big profit than in providing for their elderly fellow Chileans.
But isn’t Social Security about to collapse? Um, no. Dean Baker explains:
Of course, the only reason anyone is even talking about cutting benefits and privatizing the program is that the right has managed to convince the public that Social Security is on its last legs. For more than two decades they have spread stories about the baby boomers bankrupting the system and multitrillion-dollar debts left to our children and grandchildren. In reality the program can pay all scheduled benefits long past the boomers’ retirement. According to the Social Security trustees report, it can pay full benefits through the year 2042 with no changes whatsoever. The nonpartisan Congressional Budget Office puts the date at 2052. And even after those dates, Social Security will always be able to pay a higher benefit (adjusted for inflation) than what retirees receive today. Those scary multitrillion-dollar debts translate into a deficit equal to 0.7 percent of future income–presented in very precise form in the Social Security trustees report for those who care to look.
Furthermore, as I have repeatedly explained, most recently a little over a month ago, it would take a decades-long Great Depression to make Social Security run out of money — and if the economy is that bad, frankly, Social Security would be the very least of our worries. Cannibalism would be a more acute problem. (Oh, and don’t get me started on how the people who are the Social Security Trustees are seriously cooking their numbers to get the doom-and-gloom stats the privatizers love.)
But isn’t Social Security this big ol’ drain on the budget? Um, again, no. In fact, it earns money most years, so much so that past administrations have used it to make their budgets look better. (This is a practice that President Obama, to his credit, might stop.) The deal is that its enemies are trying to get you to confuse it with Medicare, which really does need overhauling — though of course not the sort that the anti-Social-Security folks are typically proposing. (Oh, and in 2001 Bush wasn’t content to dip into the Social Security piggybank to mask the deficits he was running up; he used Medicare’s kitty — which back then was also running surpluses — this way as well.)
Bottom line: Leave Social Security alone. Period.
Related posts:
- Come Saturday Morning: Social Security is Safer than Your 401K
- Geithner on White House Plans to “Fix” Social Security
- David Broder and Five of His Friends Mean the “Nation” is “Ripe” to Cut Social Security Benefits
- Jim Himes: Don’t Call Me a Corporatist!
- Auto Retirees were Promised Health Care; GM Deal Breaks the Promise
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All these “concerned” politicians wishing to “save” Social Security – why do they make me want to grab my wallet?
he’s on Tweety right now
That was some ugly gloss, caught just the end.
Ed is the BlueDog catch-all, and Hoyer is so easy to despise.
thanks for covering this pw.
They don’t call it the third rail of American Politics for nuthin’. Frankly I am surprised they are trying this so soon after the latest meltdown.
Great post, PW…and excellent links. If they really want to strengthen Social Security why do they want to eviscerate it? Why not simply end the discriminatory limits on what the wealthy pay into it?
They wealthy constantly prate about how they “don’t need it”. But I wonder how many actually don’t accept the money they “don’t need”? They are like John McCain, receiving SSI, a military pension, an extravagant Senate income (and additional future pension) while being the husband of a multi-millionairess. And most of these corrupt politicos would see a lifetime of perks as a lobbyist if they ever push through the end of the “payroll tax” (i.e. the SSI ‘match’ + Medicare match + Unemployment Insurance match) for big biz.
I call him Slimey Hoyer.
In fact, they have been getting away with it for years. Maybe they should have to do a “catch up”?
I think that one on the far left is a manure fork, not a pitch fork. Although one would pitch manure with it.
EPued:
In response to selise @ 17 (show text)
Yup(:>)) No Need for a transplant, Doc now says not Cancer… Will know more after appointment Thursday. But Doc had called me again Monday to make sure I had understood what he had told us last Thursday… I was all ready for the transplant when pre op Doc said I was canceled!! He then took us to my liver Doc and he explained that that they now with new scans that I didn’t have Cancer but what they had been seeing was hemangioma. So looks like I am out of the woods and can start living life like a normal person(:>))
Damn, that’s great news. Doesn’t get much better than that.
Seein’s how we’re dealing with politicians the manure fork would be more apropos.
Sure is SD this has been a two year ordeal!
If it’s detectable with an MRI why so long?
got it (thank you very much!), and left you a reply.
Just use this to end his political career. It is all the real democratic candidate will needs to defeat him. People want universal health care. They don’t give a damn who knows it, and who cares if you don’t think so.
Don’t any of these idiot politicals realize they are going to be blamed for not saving the country as it falls?
Will we continue to ignore that Rome has again fallen, and the pieces are being hacked up?
And Dear Senator Reid; Don’t you understand the concept of a joke? Arlen and Joe have picked your pocket in your desperation to “not look like you are doing anything bad” as the leader of the children’s choir. You see, you must understand a joke not to be one. Ask someone on your staff unless they too are without the basic tools you need to open a door and make your way in the world.
Republicans have been trying undo the new Deal since it became law! They will never rest until they destroy SS. They have already got rid of those cumbersome regulations the Glass Steagall act! Look at what that got us!!
Thanks selise (:>)) Are you living in the Bay Area or did you just come here for treatment??
Last Scan was with the new 128 bit CT scanner that they just got running in their newly opened facility here in Redwood city. I guess just before I was to have the surgery they went over all the pictures including the ones I had done the week before and decided it wasn’t Cancer. The next day all the Radiologist went over my case and again decided no cancer.
i was living nearby when i got sick (actually almost on the redwood city border), but live in ma now.
Apparently, the Democrats are gung ho for this too… Take the people’s $$$ instead of taxing the outsourcing corporations or doing “cram down” or stopping CC company usury. I really don’t know who they think are going to buy their products unless they fully subscribe to Limbaugh’s views that people aren’t suffering form this depression….Well, he’s got his doesn’t he?
They already starting the process by not giving SS recipients cost of living increases for at least the next 2 years.
Social Security Benefits Not Expected to Rise in ’10
Really stupid, because these are the people who HAVE to spend their $$$.
So……….here we go
As we pass the mythical 100-day gate by a month or so, I have seem more and more signs that Obama did not chose Biden to be perceived as “more moderate”, but to give him closer ties to the Banksters in a most stealthy manner.
JoeBee has been the Senator from one mega-bank or another for as long as he’s been involved in legislation… he was a prime mover in keeping that Bankruptcy abortion alive through the whole of the Clinton years, he can’t even spell usury, and probably would have introduced legislation to write debtors prison into law if he thought he could have gotten away with it (not to mention getting paid handsomely for his efforts by the Banksters).
I suspect that JoeBee will be deeply involved in any “rewrite” of Social Security legislation… it truly is time to grab the torches and pitchforks and start taking to the streets to focus on the walking cognitive dissonance that is the Obama administration. Or we’re gonna all be owned by Delaware corporations, into the next twenty generations.
Exactly. Who the hell do they think is going to trust Wall Street after this?
((((((nahant)))))
I wonder if they are using social security to distract us from their real target – eliminating a govt. health plan option?
if mike allen is trying to help the repuglitards by posting luntz’ talking point lies, then allen should have been working for george w bush
ed henry is FLAYING a repuglitarded BIMBO with luntz lies RIGHT NOW
the bleach blond bimbo says the talking points ain’t really being used, AFTER ed henry played a tape of cantor repeating the lies verbatim
do the repuglitards know that we can spot a BAD LIAR a mile away ???
piss on my leg an tell me it’s raining AGAIN, you stupid twit, that’s been working out for YOU at the ballot box really GOOD
you got that right Cassy! But ” They say no increase because of “Low Inflation rate” which is how the increases are figured out by law.
Ditto Mucho!!
NAH, they’ll do that, but you can bet your sweet patutty that the insurance companies will be the major recipients of the largesse. It’ll be a sham.
I grew up in Boston & Nahant! Came here for the weather! We hope to be back there in late August for two weddings, maybe the Ma Pups could have a little get together then??
They should shop at MY store, Every time I go in there, the prices are up and there are fewer products. Anybody else noticing this?
as usual pw, a TERRIFIC post from you
let me ask something because there is too little information and misrepresentation
the social security is far more then a simple retirement fund, could you or anyone please enumerate all the programs that fall under the social security’s umbrella?
muchos
(((newspaperbrat))) Thanks NPB(:>))
Oh yeah! It is way to drop $100.00 at the food store and only bring one or two bags of food… Way too fucking easy..
that would be fabulous!
Lots fewer products at the stores I go to and at my usual store everything has become Sara Lee. UGH!
Dear Friends, let me remind you that the Republicans can energize people who need help the most to rail against that help. Trust me when I tell you that their playbook will be to play on the old socialist or communist fears about health care. People who don’t even have health care will be up in arms. The same game with Social Security. Many interviews with young people have shown them to be convinced that they are going to be left penniless when their retirement rolls around.
We should be there by August 20th.. at least thats the plan, first wedding that Saturday and then the next the following Saturday.. so we will have time in between. billbugs wants to get together also, so we see as the time gets nearer. Of course we have to visit Nahant, my parents & sister are buried there along with the rest of my Dad’s family.
great time of year. if it works out and is convenient, email me at gmail. there are a few other pups in the area, it would be fun to have a meetup!
Privatizing 20% of social security contributions would I believe to a great amount of good. All these numbers shown in the article assume that the government collects social security revenue and puts it aside for social security payments but in fact it does not. The government puts in IOUs and uses the money to fund other projects and operations. This is why putting 20% of that income into a broad spectrum of investment vehicles would be much more beneficial to many people. Lets say you cut 20% from a persons $1000 monthly social security check, this is $800 guaranteed. The other $200 will fluctuate, could be higher could be lower. But the great part is that that extra 20% is feeding the broader economy, providing liquidity, and growth potential for businesses and people. Also keeps the money out of the governments hands. This boost to inflow to the economy will help offset the outflow from baby boomers slowly draining their retirement funds as well.
sure would seliese.. is just seliese at the addy you said up thread?
I’m a young guy and I am not counting on Social security being there when I retire. I’m not saying it won’t because I have a hard time believing we could break away from it. I think all young people should plan like they are responsible to fund their own retirement, This way there would be no doubt that they can have a secure retirement and when and if social security is still around when they get there, congratulations your hard work has earned you a bonus.
yes. just two ‘e’s though: selise
also, you can click on my name and there is a contact page you can use (upper right hand corner is the link).
gotta go now, will catch you later. still smiling about your good news!
OOPS! sorry.. Hate it when I do that.
Sad4 -
Work hard for thirty years
In a flat or falling wage environment.
Utter disregard for labor in general.
Skyrocketing healthcare costs.
Criminal creditor controlled market.
No bankruptcy protection.
And get back to me with just how much you have in your retirement account.
Selise You have mail!!
Save $1000 a year for 30 years, that $83ish a month. Now say you don’t believe or have any trust that over thirty years the stock market can return 8%-12% annually so put put it in the bank gaining 3%. This way after 30 years you would have around $50,000 in cash. That is not gonna get you far but its a start. Then buy a modest house and work on it to improve it yourself and have that paid off in 30 years. That is prolly another $100,000. Sock away some in a 401K through your employer with a match even better, saves you on taxes and builds as well. There is a lot you can do on a limited budget and yeah its boring and tired but the whole living within your means and staying debt free as much as possible will work wonders
Not a problem. The Heritage/Cato crowd has controlled the debate terms for so long, even people who would normally know better are fooled.
It helps if you’re consistently employed at a job where you can afford to save. But real wages in America have — aside from during the last term of Bill Clinton’s — steadily dropped since the mid-1970s.
(((nahant)))
We now know that 401Ks are the sham that we merely suspected back when companies were ending the private pension. So now we need to be planning for INCREASED Social Security benefits–something akin to a true national penison plan.
For most of us, our parents got higher real wages during their life times plus a defined benefit pension plus continual increases in Social Security. How do these Republicrats expect those of us with less real income and no pension to manage to invest enough money to retire when their buddies on Wall Street are stealing interest and principle? How are we expected to make ends meet?
Funny you should mention the following:
“Cannibalism would be a more acute problem.”
Problem solved. I wouldn’t eat a Republicrat (one knows where they’ve been). But I am told that pigs will eat Republicrats, and I’ll eat pigs!
late, but woo-fuckin hoo!
I guess I just choose to look at the potential and great benefits out there and see how on my limited income I can make the best future for myself. That means planning for the worst as well. I can’t deny that “real wages” have gone down but I’m also not going to wallow in it. I am going to look and see that that is a real trend and in order for me to succeed and have a comfortable life I am going to need to make decisions that best suit my and my families needs and then go out and do it.
Social Security has sufficient funds to fully finance the retirement system to 2040 if the government honors its commitments and pays back the surpluses and the interest accrued on them. A lot of the current attempts to “fix” Social Security, I suspect, involve welching on these commitments. The government has various options. It can pay shortfalls which the surpluses were meant to cover and which should begin to occur around 2017 by dipping into general revenues to pay them. It can raise the retirement age and reduce benefits. Or horror of horrors, it can remove the income caps on the rich and fund the shortfalls to 2040 and beyond.
Even in a worst case scenario, SS should be able to fund 74% of its commitments in 2040 and beyond. So no, it will not run out of money even if nothing is done. It just won’t be able to meet all of its commitments. That is far different from not being able to meet any of its commitments.
Make the congressional pension plan use the same contribution and payout schedule as SSDI. Yes, they’d have to get used to not being in the top 10 percent in income after they retire, but they should have invested all those donations from the banking and insurance lobbies in reliable vehicles if they wanted to maintain that Village lifestyle. /s
The sad truth is that because the Thugs with the complicity of the Democrats raided the SS fund in the Bush years, taxes are going to have to go up to pay off the debt the United States government owes the Social Security Administration, which holds the notes. Hoyer is scared stiff that the thugs will go hell for leather after the Dems for raising taxes, although the tax increase was implicit in the original tax cuts put through — may I remind everyone– with Democratic support. It was a shell game all along.
Money at 8 to 12 percent: good bye. Sorry it went into derivatives and CEO compensation: Money in bank at 3%: sorry that doesn’t seem to match the inflation. Oh, well. Seemed like a good idea at the time. Money in house. They always go up, don’t they. Seemed like a good idea at the time.
social security is insurance. You pay for insurance to cover the odd chance that things don’t turn out right. As it happens, things are not turning out all right at present, and the people on SS are glad they had that insurance.
Learn some real economics. You might start thinking accurately.
The past and current attempts to privatize Social Security are nothing less than systematic attempts to feed the stock market money. It’s clothed in all kinds of Catoeque rhetoric, but the design is to take funds and divert them into the private sector, those geniuses of rational/optimal allocation of scarce capital, further decreasing government capital for its responsibilities under the Social Security Act, and further increasing the risk of losses suffered by individuals who participate in the market. No doubt the Blue Dog Democrats will agree that this 20% allocation needs to be mandatory to ensure a permanent source of revenue for stockbrokers, and they will ensure that losses may be deducted from the taxpayers’ following year’s income tax return to ensure that the Federal Treasury is further deprived of revenues. Once again we let the “intellectuals” at the Cato Institute et al to win this argument because we do not challenge their fundamental argument which is that the private sector should decide what is or is not in the public interest. Once you have two or three years of positive returns, there will be a clamor to require 40% of Social Security contributions to be privatized, and then 60%, and then 80%, and then 100%. So when the financial economy collapses again, and it will without serious reform and oversight, what then? What then will be the Blue Dog scheme to funnel massive amounts of money to these geniuses of capital allocation and risk taking? I would like to hear Steny Hoyer’s contingency plans for this scenario because I know that only a fool could not take away the lesson that the American financial economy needs serious reform before any rational person could think of diverting Social Security funds to them for long term retirement investment purposes. Right?