Yesterday was the President's Deficit Commission and today is the Peterson summit. The very serious people (who didn't know there was a housing bubble) are telling us that our own government providing benefits to our people is baaaad and very unserious. (Military spending? What's that?)
As Paul mentioned yesterday in a GREAT post, Campaign for America's Future is hosting a "Virtual Summit On Economic & Fiscal Responsibility (For People Who Did Not Wreck The Economy)". Lots of great stuff.
So what about that deficit, and the Social Security crisis? Always, always keep in mind that the whole bruhaha over Social Security comes out of a strategic plan to get rid of it. As Paul pointed out in his post and as I have written about,
This strategy goes back to a larger Wall Street effort to get rid of Social Security. A 1983 Cato Institute Journal document, "Achieving a Leninist Strategy" by Stuart Butler of Cato and Peter Germanis of Heritage lays it out for us. The document is still available at Cato, and select quotes are available at Plotting Privatization? from Z Magazine. ...[quotes from the Cato strategy document]
... Every time you hear that "Social Security is going broke" you are hearing a manufactured propaganda point. Every time you hear that "Social Security is a Ponzi scheme" you are hearing a manufactured propaganda point. Every time you hear that "Social Security won't be there for me anyway" " you are hearing a manufactured propaganda point.
Don't fall for it. If they can gut Social Security they stand to make a lot of money but you stand to lose your retirement.
At risk (and with full intent) of repeating myself allow me to offer these charts:
Dear Deficit Commission,
It's not hard to figure out why we have a huge deficit. It's so easy I don't have to use words. Here are some pictures:
Bill Clinton raised taxes on the rich. Bush cut them.
Now, about that huge national debt...
The second chart kind of explains itself. The third chart can help you find a place to get some money:
(Note: There is no more Soviet Union.)
In case that isn't clear enough, try this:
I'd like to add a chart from another post, 14 Ways a 90 Percent Top Tax Rate Fixes Our Economy and Our Country:
A consumption-based economy does better when consumers have more to spend. Perhaps not cause-and-effect, though I suspect so, but after FDR raised top tax rates the economy grew dramatically. The 90% top rate years under FDR, Truman, Eisenhower and the beginning of the Kennedy years were the years when we built the middle class. And remember, after Clinton raised top tax rates only modestly the economy grew. How's it been doing since Bush's tax cuts for the rich?A look at economic growth rate charts shows a steady decline in the decades since top tax rates began to fall. Is it just a coincidence that the economy booms after tax increases that provide revenue to invest in new "seed corn," and that the economy declines as we reduce taxes?
So that's my two cents...
This post originally appeared at Open Left.
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We need a responsible approach to cutting spending in defense and offering private accounts for social security. Chile has used private accounts for years and while their wages on average are 1/4 of ours, their benefits are only 1/2.
that former dictatatoship that Friedman messed up economically
umm OK
Once again, 1/4 of our wages, 1/2 of our benefits. Do some research into how many workers support each retired individual on SS and you'll see that we can't continue on the same path and give out the same benefits. Does your ideology really prevent you from looking at a successful policy just because it came from the Chicago School of Economics?
And to do this, our elected officials need to step up and pass even handed tax laws? And then simplify them so even my CPA can understand these laws? And maybe, just maybe we have a chance to steer the good ship United States out of harms way?
You know, Glenn and Sean and Sarah are gonna call you out as a Marksist, Kommiee, Plinko Lubreal type... oh, sorry, and a turdd burglar. A silly label all progressives should wear with honor.
what is so bad about health care, retirement and education for all who want or need it?
see no downside there
While we are at it the offshore tax havens have to be abolished. Or at least when you move your money offshore, you are taxed at over 50%. Move your money, lose a bunch of it. Simple.
look at the 401 k - if the economy stinks when its time for you to retire you are hosed. the 401k as originally sold to the people was as a supplement to defined benefit plans. Corps soon realized it was a convenient way to offload their retirement responsibilities onto the employees - and wall street got a huge cash cow to play with - notice how the dow skyrocketed over 10k and more in coincidence with the rise of the 401 k
the very same thing will happen if SS is privatized
any one or combination of the following puts SS on a growth path for many many years to come
roll back the Bush tax cuts
raise the retirement age - already happening on its own as people have to work longer to replenish their evaporated retirement accounts
raise the salary cap
plus for good measure lets get Gore's much ridiculed "lockbox" and prevent congress and the treasury from raiding the fund