Paul Krugman basically collects the blog posts of the past few days to make a fully formed argument against Social Security benefit cuts or increases in the retirement age. He basically says that the expected increase in the percentage of GDP needed for Social Security in the next 20 years is less than the increase in the military budget since 9/11, and that those with their knives out for the program are using accounting tricks:
So where do claims of crisis come from? To a large extent they rely on bad-faith accounting. In particular, they rely on an exercise in three-card monte in which the surpluses Social Security has been running for a quarter-century don’t count — because hey, the program doesn’t have any independent existence; it’s just part of the general federal budget — while future Social Security deficits are unacceptable — because hey, the program has to stand on its own.
It would be easy to dismiss this bait-and-switch as obvious nonsense, except for one thing: many influential people — including Alan Simpson, co-chairman of the president’s deficit commission — are peddling this nonsense.
And having invented a crisis, what do Social Security’s attackers want to do? They don’t propose cutting benefits to current retirees; invariably the plan is, instead, to cut benefits many years in the future. So think about it this way: In order to avoid the possibility of future benefit cuts, we must cut future benefits. O.K.
He adds that raising the retirement age, which amounts to a benefit cut of up to 20% (that would be the entire point of raising the retirement age, to reduce future expenditures), particularly short-changes low-income workers, who have not seen their life expectancy increase at the same rate as the affluent.
Now that we have a solid foundation and a set of arguments against benefit cuts and rebutting the premise that Social Security stands in crisis, as well as a set of solutions (like raising the payroll tax cap so it captures the amount of compensation that was part of Social Security’s design) that would easily deal with the long-term funding picture, progressive groups have decided to challenge their representatives to sign on to the pledge that shares these precepts. At Hands Off Social Security, the coalition fighting benefit cuts has launched their whip count operation, getting members of Congress on the record with the pledge. So far, 7 current members of Congress and 6 candidates have either signed it or made statements consistent with it:
Members of Congress:
Raul Grijalva, Lynn Woolsey, Nancy Pelosi (based on this story), Alan Grayson, Dave Loebsack, John Conyers, Earl Pomeroy
Candidates:
Francine Busby (CA-50), Roxanne Conlin (IA-Sen), Jack Conway (KY-Sen), Elaine Marshall (NC-Sen), Ann McLane Kuster (NH-02), David Segal (RI-01)
This obviously is in the formative stages, but over the next several weeks, the coalition will continue to get members on the record about their plans for Social Security. Considering that the cat food commission won’t release their recommendations until after the elections, this represents an early start.




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spot on analysis by Paul
But the rest of the media is still not catching on – or if they are, their editors still demand he said/she said stories with no analysis of who is a liar – which in effect makes those editors liars because they only tell partial truth – and partial truth is the classic lie.
I hope this pledge works out better than the pledge not to support any healthcare bill without a robust public option.
One thing that always bothers me is when people refer to Social Security as an “Entitlement Program”. This is NOT an entitlement program, it is a retirement program that we have been forced to pay into since the day we took our first job at McD’s to help pay for college or our first set of wheels.
We were forced to pay in, our employers were forced to match the funds, and the plan administrator (SSA) was expected to prudently invest the funds so there would be plenty for us when we hit retirement age.
If we are going to cut “entitlement” – how about all those CORPORATE ENTITLEMENT programs paying out to corporations who turn it into bonuses for their top 2%?
sigh, have had those thoughts as well. the same with another group that appears to be completely legitimate -
Tangentially related, Krugman will received an award from NYABE on 10/4, and I’ll be first in line to ask him a pointed Q.
What you said.
Most of us have been paying more than double the needed amount into Social Security since about 1983 in order to fund the Boomer generation retirements. These surplus funds have been “invested” in “Special US Treasury Bonds” (those pesky “pieces of paper in a filing cabinet” in George Bush parlance)
So the folks trying to raise the retirement age or cut benefits are actually asking for the US to default on Treasury bonds because the surplus was spent to pay for tax cuts for the well to do and two wars/occupations of choice.
AAUW has been encouraging their 100,000 members to contact their congress critters about safeguarding SS.
That fund was used to give tax cuts to the rich, in case you hadn’t noticed.
(read the second paragraph)
Surely those recommendations are a foregone conclusion especially in light of the membership of the panel?
That we even have to divert huge amounts of resources to fight this battle because a Faux Democratic President has brought this administration killing subject up is an outrage! Who asked Obama to even go there? The answer is obvious isn’t it, his bosses on Wall st. who see a golden opportunity to have their employee do what he’s been hired to do, grab SSI and Medicare for the Fortune 500 to feast on. It gets more and more disgusting the longer this group is in power.
Krugman “What’s really going on here? Conservatives hate Social Security for ideological reasons: its success undermines their claim that government is always the problem, never the solution. But they receive crucial support from Washington insiders, for whom a declared willingness to cut Social Security has long served as a badge of fiscal seriousness, never mind the arithmetic.”
Just keep being reminded of what Former Secretary of the Treasury Paul O’Neil stated in Ron Susskind’s book “The Price of Loyalty”. That he and Greenspan made plans in early 2001 to roll over a sizeable amount of the Clinton surplus into upcoming social security shortfalls during the next 20 years. We know what happened to that Clinton Surplus.
Purveyors of propaganda and outright lies, supplementing the celeb-Hollywood stuff, is the bulk of what American corporate media does. I think with an abjectly weak persona as Obama as President, this cat-food commission is the most dangerous yet. Their destructive measures, raising the SS retirement age, will be pegs to achieve the eventual privatization of SS AND Medicare which will lead to the demise of those programs for lack of support/negative feelings. Simpson and Bowles are hatchet men. Tells one ever more about the real Obama, one of the two slickest con-men, along with Bill Clinton, I have seen on the national stage.
OT
Levin pied.
In the early 80’s in south Texas three counties opted out of SS: Galveston, Brazoria, and Matagorda.
Until the early 1980s government entities, such as cities and counties, had the right of opting out of Social Security and establishing their own retirement system. This option had been provided when the Social Security Act was passed in the thirties. The Alternate Plan that began as a fledgling, upstart employee benefit plan has stood the test of time and has shown that it can and does outperform Social Security. The plan that started in Galveston County ended the first year with a modest balance. Today, with over 5,000 employees from these three counties The Alternate Plan has grown to a very healthy and sizable portfolio. Those who retire after 20 years will receive three to four times the rate as under Social Security.
One thing to be said for having the funds privately held, the government can’t raid them to start a war.
Forget whipping and on-line petitions and calling your rep and all that easy shit.
The only thing that is going to stop the gutting of Social Security after the November elections is massive public demonstrations in D.C., around Wall Street, and at the local offices of every Congresscritter. And by massive I mean ginormous, like the biggest of the anti-Vietnam war protests, MLK’s march on Washington, etc. And they will probably have to be on-going, day-after-day for at least a week, maybe two. It can’t be a hit-and-run message, it has to be a seige of the power centers. And somebody with the organizing operation to pull it off had better start organizing it NOW.
Clinton raised taxes on the rich, ushering in the longest sustained period of economic expansion in U.S. history. Strange behavior for a con man.
Read this before you object to Clinton the con man.
Hmmm…
So you understand the worth of any promises from this group and you know that these “champions for the public” will shaft said public the moment the oligarchs give the word… how can you cut down on the defections?
Breaking their word so far has paid off handsomely for them.
Weren’t folks ‘on record’ with Single Payer? I’m sure this will work out just as good.
I want to join the “professional left”. Is this the professional left? Since I am a beginner, maybe I should start with the “amateur left”? Can anyone guide me?
If you’re to the left of Mussolini/Obama, you’re the left.
If you stay there for more than a week, you’re a professional.
Pelosi makes my head spin. she calls for an up or down vote on the catfood commission rec’s and then, is AGAINST cutting SS?
where am I?
The fear campaign and Social Security – Greenwald
(From Vietnam War):
“‘It became necessary to destroy the town to save it,’ a United States major said today. He was talking about the decision by allied commanders to bomb and shell the town regardless of civilian casualties, to rout the Vietcong.” The quote was distorted in subsequent publications, eventually becoming the more familiar, “We had to destroy the village in order to save it.”
So, according to Republicans and other conservatives (no matter what party affiliation), for Social Security to be saved, it must first be destroyed.
Similar to their attitude toward our country. For our liberal democracy to be saved, it must first be destroyed.
Scorched-earth Republicans and other scorched-earth conservatives have developed a scorched-earth agenda for our country, especially since President Obama became president. Unfortunately, the Obama-created Cat Food Commission appears to have a scorched-earth attitude toward Social Security, which is hardly at deaths door, although conservatives want to pull the plug on Social Security anyway, right now, as well as any other liberal FDR era programs or any other liberal Democratic Party initiatives. After the conservatives finish with scorching the earth of our liberal democracy, then what? What is their conservative vision for our country after the ashes stop smoldering and the screaming (especially of the elderly and children) dies down?
I have several times made the point “how dare they raise the retirement age at a time when there are no jobs for persons nearing retirement age” but a letter to the Editor I saw today made the same point more effectively:
Indeed. There is another side to the generational argument. For those who wish the Boomers would get out of their way, raising the retirement age is the worst thing you could possibly do.
Win!
This is more stupid strategy from the “veal pen” in DC. Let’s say the campaign to save SS is completely successful. Then what will happen? The Catfood Commission will come in with its recommendations, the political people will say we can’t cut SS, and the Commission will say, well let’s take it out of Medicare or Education or Transportation or . . . . ,
But once the progressives win on SS they won’t have any leverage to use in other areas. In fact, because the Commission has given way on SS, they will then say, well, now you have to give us something, because the pain has to spread around. And so the good little veal pen progressives in order to seem mature and reasonable will give way to draconian cuts in some other area, where there’s no coalition of 60 groups defending that area.
The right strategy was for progressives to say, there’s no reason for the CF Commission. Not one dollar has to be cut from the budget for reasons of solvency. We can always pay our debts. The deficit is literally irrelevant. We’re willing to cut stuff, but only stuff that’s not doing any good for the American people. So let’s talk about that, and while we’e about that, dismiss this commission or we’re all staying home in November.