After being criticized for emphasizing points of agreement on Social Security during Wednesday night’s debate, President Barack Obama’s re-election campaign delivered an email to supporters clarifying their response, which left a number of key details unanswered and retained a degree of flexibility for the President over his choices for the program.
Deputy campaign manager Stephanie Cutter sent the email Friday night under the campaign’s “Truth Team” aegis, attempting to clear up the Social Security portion of the debate. The President said then that he believed he and Mitt Romney share a “somewhat similar position” on the topic. Cutter expanded on these remarks, pointing out areas of agreement and disagreement:
President Obama and Romney agree that we need to make gradual changes to make sure Social Security stays solvent over the long term. The disagreement is over how to do it — and that’s where President Obama and Romney have fundamentally different ideas.
President Obama will under no circumstances agree to put your retirement at risk by privatizing Social Security, and he will reject any plan that slashes Social Security benefits. Because Romney opposes any effort to raise a single penny in new revenue, his Social Security plan is forced to rely solely on big benefit cuts to maintain solvency — analysis of a similar plan showed current workers would see cuts of up to 40 percent that would badly hurt their financial security.
Romney and Ryan also supported the Bush privatization plan that would have had exposed Social Security benefits to the financial crisis that devastated many pension funds and retirement accounts.
Cutter also sent readers to a page at BarackObama.com for more clarification. That site refers to a Bloomberg piece from Peter Diamond and Peter Orszag, which analyzes Mitt Romney’s Social Security plans. Those plans have been remarkably consistent over the course of the campaign – he wants to slowly raise the retirement age, and engage in “progressive price indexing,” where higher income earners see their benefit rates grow more slowly than those at the lower end of the scale. As Diamond and Orszag show, you would have to set the bar of “higher income earners” at the top 60% of earners in the country in order to derive any meaningful revenue from progressive price indexing. And raising the retirement age would impact all workers, regardless of income. Here’s how that all plays out.
These two steps would eliminate the long-term deficit in Social Security, according to the official analysis of the plan done by the Office of the Chief Actuary at Social Security. But they would do so by substantially reducing benefits, even for middle earners. According to the analysis, a medium earner (someone bringing in about $45,000 a year today) retiring in 2050 at age 65 would receive 32 percent less in annual benefits than under the current formula. By 2080, the reduction would amount to almost 40 percent.
A high earner (someone with income of about $70,000 currently) retiring in 2050 would get 40 percent less and, by 2080, almost 50 percent.
But Diamond and Orszag, in substitution, offer their plan which they claim would have that same middle-income earner receive 10% less in benefits over their lifespan. “The Romney-type approach would reduce [benefits] by about $7,500 a year. Under our plan, it would be only about $2,500 lower,” Diamond and Orszag write.
At the Truth Team page, you see Obama’s principles on Social Security reform laid out. And it matches what Obama has been saying on this matter for a while, full of vague statements and undefined concepts:
• Any reform should strengthen Social Security for future generations and restore long-term solvency.
• The administration will oppose any measures that privatize or weaken the Social Security system.
• While all measures to strengthen solvency should be on the table, the administration will not accept an approach that slashes benefits for future generations.
• No current beneficiaries should see their basic benefits reduced.
• Reforms should strengthen retirement security for the most vulnerable, including low-income seniors.
• Reform should maintain robust disability and survivors’ benefits.
The only hard line here is on privatization. I don’t know what “slashes” benefits means relative to simply reducing them. I don’t know what “basic” benefits means relative to the benefits people receive. And while later, Romney gets criticized for “proposing to close Social Security shortfalls through benefit cuts alone,” there’s no indication of any revenue increases Obama would support.
In other words, this set of principles was constructed to give Obama maximum wiggle room on Social Security, so that all people can read into it whatever they want. You can see someone who supports no benefit cuts, or modest benefit cuts, or revenue increases through changing the payroll tax cap, or no increases. President Obama won’t privatize Social Security. As for what else he would do, it’s not clear.
There’s no definitive rejection of raising the retirement age, for example. He doesn’t dismiss progressive price indexing out of hand. There’s no description of changing the cost of living adjustment calculation by moving to chained CPI, which is a net benefit cut. You just have an offhand reference to a column criticizing Romney’s Social Security approach, written by two guys whose plan for Social Security includes straight benefit reductions and an increase in the payroll tax rate without changing the payroll tax cap.
I think this “clarification” creates more questions than resolutions.




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That’s Obama’s modus operandus. Let people think he means whatever they want him to mean and then, when Obama does his evil, the Obots will declare either (or both) that: 1) Obama never said he wouldn’t do it; and 2) everyone except you idiots already knew Obama was a Blue Dog neoliberal anyway.
We’ve already seen this movie and it sucked the first time too. Thanks for not accepting the double-talk.
That will really help with the abysmal youth unemployment rate.
Obama’s words are crafted by the advertising industry, where auto design is “bold” and cigarets are “satisfying”. All of it is just empty bullshit. I was fooled in 2008 by the rhetoric that the wealthy pay this hollow man to deliver. I’m not voting for him this time.
Thank you. You said it perfectly.
It is a step in the right direction anyway. I think we pushed him to the left ever so slightly to open up a gap between he and romfuck. It will be interesting to see how rom responds. Let’s hope he tries to get to Obamas left. In any case it could lead to further “clarification”.
thank you for the timely analysis. we were discussing this issue over at eschaton.
OB is being a weasle on this, as you point out. the right thing for a democrat to do is to declare a full-throated endorsement of social security. it should not be lumped into the deficit discussion and trashed.
what i resent most about comments from our two candidates in the debate, comments that were initiated by Rmoney and chimed in upon by OB, is talk about the 55-year-old cut off for changes to Social Security.
OB should have called BULLSHIT on it.
it is the idea that folks such as myself, who are above 55, just dont care what happens to medicare for those under 55.
i do care and care allot about that. i am not part of the the i-got-mine crowd. i want my children and my colleagues and my younger friends to all get medicare at 65 and ss — undiminished — when they reach their 60s.
this is about being in this together and caring about that they have dignity in their lives. it is not about having two classes of workers, with two classes of benefits and payscales, as they do at Caterpillar and many other places.
raise the contribution cap from $106k.
then do the math and tell us how that works out.
I’d like to add one other point. Let’s assume Obama gets his Grand Bargain and cuts social security in some way. It doesn’t really matter exactly how Obama cuts SS — whether it’s means-testing, chained CPI, raised age eligibility or decreased benefits — because once SS gets on the chopping block there will be no end to “tweaking” it.
Obama is initiating the process of undermining SS and transforming it into a welfare program. So what do you think the next GOP president after Obama will do to SS? This is a plutocratic two-step: transform SS into welfare and then condemn welfare. Or just “tweak” SS into oblivion. Once the political Third Rail aspect has been removed all bets are off. Obama has already “accomplished” that within the DC plutocracy but it hasn’t yet penetrated into the consciousness of most Americans due to Obama’s obfuscation.
Perhaps if the alarm bells are sounded loudly enough, the American People will recoil in time and restore the sanctity of the social safety net before Obama does any further damage.
If Obama is trying to kiss and make up about SS, it didn’t work for me. The very idea that SS should be changed is absurd and unnecessary. We need to have people with jobs who pay into SS.
It takes a democrat to put SS on the table. Not votin’ for no stinkin’ democrat.
This whole thing is made overly complicated by both sides. Of course the 1% fucks don’t want to raise any taxes or revenues no matter where it goes. So they’d never agree to simplest, fairest solution of all:
Raise the income cap on the payroll tax. You could even throw a bone to the rich assholes by saying income would be capped at $2.5 million. Anything after that is not taxed. You could write the bill on a postcard. But no; both sides are going to protect the plutocrats and bugger the middle-class.
As a matter of conscience, I cannot vote for Obama. He’s just the flip side of the “false choice” coin brought to you by Wall Street and the rest of the corporatist/military theater.
I agree. But I think we can fund it without raising the cap
Right.
And back door borrowing from Social Security under the guise of the payroll tax holiday was the camel’s nose under the tent; brought to you by the scumbuckets of both parties.
Hey, but the military budget is virtually sacrosanct.
SS isn’t part of the budget. Why does it need to be cut? It doesnt. Pay back the money you ‘borrowed’ from it and go home.
Obama’s position on SS has pushed me into Stein’s camp and this “clarification” has done nothing to change that. Rather it has solidified my opposition to him. The pnyl clarification I am interested in is for him to say, “I will not, under any circumstances, cut Social Security or Medicare”. He’s much more likely to win me over by promising to expand both programs but for now I’d go with his word not to cut or gut.
Any “tweak” other than raising the cap serves the 1% and harms the rest of us, both individually and in our ability to be a society and country that cares for its elders.
Obama knows this. He appears to have, once again, “clarified” his choice.
Maybe a strong showing for third party candidates for President will convince Congressional Democrats to prevent this choice from getting to his desk for his signature. Any other ideas?
Thanks for the update David.
I saw the Truth Team’s substance-free spin retweated out by hundreds of people last night. What a joke. I wonder whether they even read it.
Just add this to the growing list of the “lesser of two evils” points: “Yes, Obama will cut Social Security, but he feels really bad about it and Romney will cut it more.”
No, it doesn’t “create more questions than resolutions”. In fact it’s the perfect resolution to what the difference between Obama and RMoney is:
Obama will f*ck us, RMoney will f*ck us more.
I think we should all submit claims on the money we’ve already put into the program. It’s not their money anyway.
Obama, Clinton, Pelosi and other Dems have embraced Simpson -Bowles (chairmen’s) report recommendations. Simpson-Bowles involves a two year rise in eligibility age to 69, a reduced “chained CPI” resulting in a lowered benefit over time, and subsistence benefit amounts for middle and upper middle class income earners. See Figure 2, HERE.
(…..from the Center on Budget and Policy Priorities.)
OFA’s linked Obama recommendations even involve the “Leninist” strategy of telling current retirees or recipients that they have nothing to fear. Hint: Watch out young people because you should be afraid. Divides to weaken the numbers of people who will fight for SS and other programs.
You forgot 3) Obama didn’t want to do it, the Republicans made him do it!
I agree. SS doesn’t belong to Obama, or Paul Ryan, or Bowles and Simpson, or anyone else except in the amount they themselves have paid into it, and the benefits they have earned. Anything else is not theirs to “put on the table.” It’s just theft.
I took a test yesterday about political leanings. You can take it here if you wish. My political ideology fell in the same camp as Gandhi, the Dalai Lama, Francois Hollande and Jill Stein. Pretty much the rest of the world leaders fell into categories that were direct opposites of my ideology. So I will be voting for Jill Stein I planned on voting for her anyway.
All the way back before Obama’s inauguration in January of 2009 he was giving interviews and statements that made it clear he meant to cut Social Security. The “slashes benefits” language is carefully chosen. Obama will argue that the cuts are minor tweaks, not “slashes.”
Also recall the recent language used by both Obama and Bill Clinton about how us liberals were too busy trying to hold onto the programs of the past and were therefore not ready to build the future? He’s telling us. He’s been telling us for a long time. We should believe him.
Third Way is winning and New World Order is happy. We were cooked when Obama pulled Blue Dog hero Clinton in to raise big money from corporations and Wall Street in the Spring. Now, we have the great compromiser owing a debt to the great liar.
Found this link to a book by Diamond-Orzag. It is not a good thing to have the President’s ersazt Social Security “tweaking” linked at his Truth site to a book one would have to purchase from Amazon. Otherwise,
we are just left with ‘clues’ from Simpson-Bowles. Diamond-Orzag claim to reduce benefits but not as bad as the other team.
Link.
That would be a good idea if enough third party candidates were running for Congress. Unfortunately, there are few. We all should have put our names on the ballot —- it’s easy to get on the ballot to run for Congress.
This is a link to the Diamond-Orzag paper published in a readable font in 2005.
You weren’t supposed to be listening to what he was actually advocating, but stunned by his brilliant rhetoric and intelligence.
Shame on you for paying attention./s
I’m thinking just in the short term, since this is likely to happen in the lame duck session right after the election. Maybe a substantial showing for third party Presidential candidates would show Congressional Dems that the left “has someplace to go.” I don’t know if they care, but it’s the only short-term plan I can think of. In any case, I’m voting for Jill Stein.
Please. The man is slimier than two eels fucking in a bucket of snot. Always remember that whatever you may think he said, he did not say those exact words in that exact order.
I could not have said it better myself.
Who knew that when Obama was reelected in 2008, we would be worried about Obama cutting Social Security in 2012 or later. The Democratic party has shown that everyone and eveything is for sale to the not so high bidders.
“• Any reform should strengthen Social Security for future generations and restore long-term solvency.”
“reform”
We all know what this code word means.
I think O is, by conviction, as it were, opposed to Social Security and that from the beginning of his public life, he intended to destroy it. I heard his ‘measure of dignity’ speech. I also saw a film clip of his address to assorted MOTU in the early days of his campaign in which he promised to axe it. He is a convinced opponent of the program and one of the great weasle liars of all time.
“… for now I’d go with his word not to cut or gut.”
Would you believe him? After taking this long to make such a commitment?
David. Romney’s plan may seem to take a more severe bite from benefits, but Diamond-Orzag asks for up front increases in payroll taxes, a legacy tax for high earners, more severe cuts for longer living high earners, and in raising the cap for payroll taxes. So even though a 25 year old might get a 9% cut in actual benefit at retirement, he or she would have paid more of a percentage of payroll taxes of a larger percentage of income due to a raised cap. In addition, he or she would have their benefit reduced to account for alleged increased life longevity. Orzag and Diamond are seemingly just changing the deal to one in which you seem to pay half as much for the same car but you have to do it twice to own it.
When I think about Romney/Ryan, Simpson-Bowles, and Diamond-orzag, I get the impression of having our best government program wrecked by three outfits of thieves who just can’t stand that we do this nice thing for each other called Social Security. They refuse to do the obvious which is for us to pay a decent benefit to everyone and to find a way for us to pay for it.
I disagree.
Obama is not a Blue Dog.
He is a stealth Republican.
After thinking about my first reply to you, I realized you may have been talking about actually having a “place to go” in 2014, and I agree with that. We need to start the hard work of fielding Dem primary or third party challengers for Congress.
“Also recall the recent language used by both Obama and Bill Clinton about how us liberals were too busy trying to hold onto the programs of the past and were therefore not ready to build the future? He’s telling us. He’s been telling us for a long time. We should believe him.”
Yeah, Clinton getting rid of the outdated Glass-Steagall in the name of “modernization” was brilliant – well, brilliant for him to go on a to a mega-million post-Presidency. I expect Obama to engage in the same primrose path leading to his own personal riches at our expense.
Yes, it was like with Obamacare “reform” raiding Medicare for nearly $1 trillion. It’s not the programs that were cut in Medicare were necessarily the best, just rather than taking money out of Medicare, the money instead could have been used to still fund other – better – programs within Medicare.
ONE of the BIGGEST problems is all this complicated entrail and guts reading –
instead of having a political system where the regular 80% of us just say, straight up & without dilettante salon speak –
“YOU are a lying sack of sell out yuppie shit. YOU will be unemployed & go fuck yourself.”
we’re gonna piddle and diddle with who had possession of the ball – Seattle? Green Bay? — what kind of penalty should or shouldn’t be called ?? what’s wrong with the refs ??
oh wait … wrong waste of my life example.
THE only thing which is “smart” is how 0bummer has a bunch of people who consider themselves “smart” pissing away their lives decoding these fucking lies, instead of getting rid of his ass.
I’ll never vote FOR a fascist, but, this DLC branch of the Dem party needs to be gone.
rmm.
It’s so bizarre.
Washington’s mantra has been that there is a looming social security shortfall that will cause benefits to drop to 80% of promised benefits by 2037.
So, the solution? Cut benefits by that amount. Then the pols can say, see, in 2037 everyone will get 100% of benefits! Just that those benefits are now lower.
If that’s the solution, why do anything?
Of course that projected “shortfall” is just the pretext for gutting the system, but someone should ask them the question I posed.
Frustrating. Like trying to catch wet fish with your bare hands! They are smart, holding back on showing their cards, and they are not being honest, nor are they being ‘fair’.
Book Salon up with David Cay Johnston’s The Fine Print: How Big Companies Use “Plain English” and Other Tricks to Rob You Blind hosted by Dean Baker
I’m sure he is “open” to various progressive things, similar to how he was “open” to the public option. Such blather.
600 B for Millionaires and they have the nerve to say we need to cut SS.
agree 100%.
it is either the third rail or it isnt.
works for democrats, too.
Hey bluedot@5 ,we haven’t pushed anyone any where .We have zero push power ,and I know deep-down you already realize this is the case .Just two nothingburgers competing for a vanity gig .Government left the building well over a decade ago .I’ve seen poor kids play basketball with no ball ,because that’s all they know .Maybe a need to play the two party game is the same deal
We are basically being told you are economically fucked ,and the debt bete-noir will continue as the austerity pretext for totally impoverishing you expendable turds .Ah ,but don’t forget to vote for your preference ,because crotch politics ,as always ,will be determined by your corporate brand’s SCOTUS picks .Yeah ,that’s real people power Push on ,and keep hope alive ,and change will be arriving on the fish truck .
I’m voting for her too. But they won’t care.
They will care if you run as a Green against them. Trust me.
Democratic primary challengers would have to go along with the platform. We spend a lot of time here complaining about Obama, but the whole platform is the base of the problem. The whole party is the problem. I haven’t actually checked but read at a good source that this year they completely deleted any mention of giving voting rights to the citizens of DC. They have moved away from giving even lip service to the things we care about.
And they arrested people who came to Congress to promote single-payer health care —- escorted them right out the door.
Obama is obessed with his grand bargain he will do anything to get it done. This is same the guy who claimed Dodd Frank will forever eliminate the need for tax payer bail out of the banks. He was lying then and he is lying now. He knows SS and Medicare are VERY popular and needed so he is trying to word smith again. This is the same BS tactic the Heir Axelrold used in the mid terms; paint the GOP has foaming at the mouth wing nuts (they are) but try and paint OBama as being sensible.
The one thing we do know they are aware people do not want SS Medciare cuts..keep pushing the pricks!
Indeed, i strongly agree with that statement: pRESIDENT oBAMA is a hidden disguised republican.
Same sh*t, different day. Everything is on the table except for what 70% of the people want.
Why SS does not have solvency? who stole the money from SS?
Unsustainable.
Sounds like a bolshevik plot to me.
Forever War on Terror, Drugs, the Left..
Raubwirtschaft or plunder economy – it eventually undid the roman empire. http://en.wikipedia.org/wiki/Raubwirtschaft
Or we can look at the bankers as the East India Company – in India.
I Guess Obama supports the Social Security reform plan of Senators Graham, Lee and Rand Paul.
They call for no tax increases, increased retirement age and progressive price indexing.
Thanks for nothing Mr. President.
(Hillary was right)
Weasel words – Obama’s not David’s.
So…
1) Piece of Sh*t Obama thinks that people earning $250,000/yr are “middle-class” and certainly should not have their taxes raised, no, never! He’s willing to let the Billionaire Bastards keep their million-dollar giveaways, just so poor Mr. Joe-the-Plumber $250,000/yr doesn’t have to pay more taxes.
2) Piece of Sh*t Obama ALSO thinks that someone earning $45,000/yr (less than 20% of the level that he absolutely won’t raise taxes on!) should have their Social Security benefits cut by over $200/month. Because of all the piles of money a $45,000/yr income lets you set aside.
Riiight, it’s much better to fight “the defiicit” (which doesn’t actually exist, of course) by cutting benefits for $45,000/yr retirees (which they’ve already paid for!) than daring to restore taxes on the poor $250,000/yr earners to the Clinton levels.
3) Piece of Sh*t Obama figures that as long as he can get some other Republican to offer up an even crazier plan, “I will cut Social Security benefits by $200 per month” will look reasonable.
I’d like to cut him. Fu*king Piece of S*it.