New Census Bureau statistics on poverty show a shocking increase in the number of seniors below the poverty line, suggesting that this would be the worst time to add on benefit cuts to critical social insurance programs like Social Security and Medicare. Focusing on adequacy of those programs would make much more sense.
The Census release concerned its “supplemental poverty measure,” seen as a more specific and realistic measure of the actual number of people in poverty. Under that standard, the poverty rate is 16.1%, or close to 1 out of every 6 Americans. But the big news here is that the poverty rate for the elderly, seen as 8.7% under the old standard, ballooned to 15.1% in the supplemental figures.
This is true despite the fact that Social Security is seen as the most critical program – by a wide margin – to reducing the overall supplemental poverty rate. Social Security reduces poverty by over 8% of the population – the next closest program, refundable tax credits like the Earned Income Tax Credit, doesn’t even reach 4%. In addition, the single biggest category of expenses that increases the supplemental poverty rate are medical expenses, which directly impacts things like Medicare and Medicaid. As Dylan Matthews writes, the fact that Social Security is such a major contributor to poverty reduction, even while poverty among the elderly exploded in the supplemental statistics “suggests that even with that substantial safety net, the poverty problem among the elderly is much bigger than we thought.”
That would make this the absolute worst time to contemplate reducing Social Security benefits. It would clearly create far more elderly poverty, and even the current rate of Social Security benefits aren’t adequate enough to protect seniors from moving into the ranks of the poor. Similarly, with medical expenses the biggest contribution to poverty, this is the worst time in the world to consider anything that would increase strain on paying for health care, as cuts to Medicare and Medicaid benefits would.
And yet reduction in benefits, rather than increases, is essentially the conversation we’re having, if we’re having one at all. Shockingly, this Center for American Progress report on the poverty statistics and the lessons for the fiscal slope doesn’t mention Social Security, the biggest anti-poverty program in America, at all. Chris Van Hollen, the Democratic ranking member on the House Budget Committee, expressed openness to cutting Social Security and Medicare today. We already know that the President has contemplated it in the past. In fact, the only leading Democratic official who hasn’t used weasel words, at least relative to Social Security, is Harry Reid.
“I have made it very clear, I have told anyone that will listen — including everyone in the White House, including the president — that I am not going to be part of having Social Security as part of these talks relating to this deficit,” Senate Majority Leader Harry Reid (D-Nev.) told reporters at the Capitol.
At the same time, on the other side of the building, the top Democrat in the House of Representatives didn’t shut the door on Social Security in deficit talks.
“Our commitment as Democrats is that we believe Social Security and Medicare are pillars of economic and health security for America’s seniors,” House Minority Leader Nancy Pelosi (D-Calif.) said during a press conference. “They should not have cuts made to them in order to give tax cuts to the rich. Any adjustments we would make in them would be to make them stronger, as we did in the Affordable Care Act.”
Nancy Altman is co-chair of an advocacy group called Social Security Works, which opposes any effort by congressional leaders to include Social Security in budget talks. Altman deemed Pelosi’s remark a bit too wishy-washy.
“The comment is ambiguous,” Altman said. “Harry Reid’s statement is much more straightforward and clear: As he states plainly, Social Security should not be part of the budget talks.”
There’s a certain madness to focusing on safety net cuts and deficit reduction at all in the midst of a continued jobs crisis. That’s especially true if the long-term projections overstate the increase in health care spending, and therefore the problem of the deficit, which is entirely a health care problem over the long term.
But this poverty release shows that adequacy needs to be at the forefront of the debate. Under current Social Security and Medicare and Medicaid spending, far too many seniors live in poverty. Will cutting the programs reduce that somehow? Of course not. “Catfood commission” was a good metaphor. It’s really the case that cuts to these social insurance programs would consign an already poor subset of the population to more poverty.




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There are also the mortality statistics, recently flagged by Krugman.
In the 20 years from 1986 to 2006, life expectancy at age 65 went up 5 years for those in the top 50%,
but barely budged for
the lucky duckiesthose in the bottom 50%.And you have to wonder what the statistics would look like
if they were broken down by quintiles or even more finely.
If only we could implement “The Ryan Plan.” We’d already be at 100% employment…and with “high-paying jobs,” too. Ayn Rand would be so proud…
It is already bad, most of the people I work with get between $675 and $1178 in ss a month. Without others to help they don’t have subsistence living and none have other sources of income or if they are able they work part time no benefits as long as they don’t make more than $900 in reportable income. Waiting list for housing and no extra money for glasses or non covered medicare items (list too long to write). But the Heritage Foundation meme that poor people have a flat screen tv and a microwave means all is well in the slums and the retirement homes. The definition of poverty is a moving target depending on election cycles and minimum wage levels. If you check the poverty level is usually right under what a 40 hour work week at minimum wage would be.
It should also be obvious that the poors have big, fancy, late-model SUV’s. How else would they transport their flat-screens and microwaves? We should send that vital info to Heritage right away.
This whole scenario fits well into the alan simpleton meme that people on SS are “greedy geezers” driving around in their lexuses and living high on the hog. Why just look at the statistics, not everyone on SS is in poverty yet so the wh and cong have a lot of work to do to get everyone down to that level.
If you look at the obituaries, people appear to be dying younger. Take a look at all the people in the 50′s who are dying. In the last 2 years, I have lost a number of friends from age 40 to 63. My 90 year old mother is still going strong and when I talk to her she is amazed at the young people around her that are passing on. A friend told me the same thing. The people around her that she is losing are all under the age of 65.
Thanks for making the SS and Medical insurance, medical costs connection.
It is so immoral how CEOs can ask for cuts to these programs and ask for tax breaks on territorial income at the same time. But Obama will frame this as raising income taxes on the rich, and make out like he’s asking us to support him, while he’s ramming this through quickly, and accuse others of hostage taking, when he’s holding all of us hostage to these unnecessary program cuts.
Being 58 myself I also have noticed a number of my contemporaries going down way too young.
Is that you, Erskine?
“Erskine Bowles Praised Paul Ryan, Criticized Obama At 2011 Event”
http://www.huffingtonpost.com/2012/08/14/erskine-bowles-paul-ryan_n_1775313.html
And then they tell us that they have to cut SS because the program has too many recipients ……we baby boomers are raiding the fund. Its all bullshit. Were dropping off like flies. Those people in DC should be collecting for their retirement from congress and the senate no more than the top dollar that SS pays out to us. Then we will see how fast they want to cut the program.
That’s because everyone who worked for a living and actually kept things going would be dead after Randian “solutions” are implemented.
(And, after the host dies, so do the parasites who feasted on it…)
-stewartm
Weren’t we supposed to stop caring about the poor a long time ago? That’s what our social betters told us.
This leads a rant of mine–how middle class people in the 1970s and 80s abandoned the poor, lured by Reagan’s talisman of IRAs and 401ks that “you can be rich too!”. But after 30 years, they’re not rich, and many find themselves slipping (or fallen) from the ranks of the middle class to the poor. You don’t want to say “I told you so” but the thought does come to mind. The 99 % is rightly called, because for all but the very top their rational self-interest lies not in promoting the greed of the very rich but the welfare of the bottom 20 % of society.
If I were president, I’d crunch a stat reflecting that welfare into some index and use that as my primary guide on how the nation was doing. Help the 1 %, and only the 1 % gets helped. Help the bottom 20 %, and everyone gets helped. There are no historical exceptions.
-stewart
Why is that shocking? CAP is basically an Administration mouthpiece. Its chairman is Bill Clinton’s old chief of staff John Podesta (whose Podesta Group works for BP, Lockheed Martin, and WalMart) who tried to “reform” Social Security under Clinton. Then Monica intervened:
I had 45 years to work and save for my retirement just like everybody else. I am a senior now. Nobody is paying my rent or any other bills. My mother is 88 and nobody is paying of her bills because she worked and planned for her retirement. We worked in factories and stores, we are not big shot high earners. Why should I pay the bills for other seniors or anybody else? Those seniors had 45 years to get ready for their retirement and now they are burdens on society and I have to pay their bills? Paying for every stupid or irresponsible decision that other people make is my reward for a lifetime of hard work, saving and responsibility? What part of that is fair?
A person’s Social Security benefit is based on how much they paid during their working years. You’re not paying their bills.
If you were working now, you would not be able to.
All those middle class jobs are gone.
Mary – I know that. I am talking about “senior housing” which is subsidized, food stamps, SSI, Medicaid to supplement their Medicare. If they are getting this stuff or any of the other 80+ welfare programs – Then I AM paying their bills.