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Richard (RJ) Eskow

Richard (RJ) Eskow

Posted: August 3, 2010 04:25 PM

A broad coalition of groups has been formed to defend Social Security, and the videos announcing it are all worth watching. Of all the ideas proposed, my personal favorite comes from AFSCME President Gerald W. McEntee: A new reality show starring the people who want to cut Social Security. He suggests having John Boehner, billionaire benefit-cut advocate Peter G. Peterson, and Deficit Commission chairs Alan Simpson and Erskine Bowles live for a year on the average Social Security benefit of $14,000.

"They won't get a COLA (cost of living increase," says McEntee, "but they'll still have to deduct $100 a month for Medicare Part B and still have to pay $200 a month for Medigap insurance." (The video of his comments is below.)

Great idea, Mr. McEntee! Mr. Peterson should be more than happy to take you up on your offer. He likes games, having funded one called "Deficitball."(1) Alan Simpson seems like a playful sort of fellow, too. It sounds a lot like I'm a Celebrity, Get Me Out of Here!, where the famous and well-to-do are dropped in a jungle and forced to do icky things like eat bugs and snakes. But in this case the jungles will be our own cities and towns and contestants are more likely to eat Purina than piranha.

But why limit ourselves to only four contestants? Why not invite those Senators who have pushed for these sorts of cuts, too, like the senior Senator from California? Dianne Feinstein, come on down! And let's not exclude economists like Alice Rivlin, a member of the Simpson/Bowles Commission who wants to cut benefits for all the wrong reasons. Let's meet our newest contestant! Dr. Rivlin thinks it's "absurdly unlikely" that "widows living on the edge of subsistence" will have their benefits cut - but then, she doesn't tell us where she thinks that edge lies.

That's a shame because, as women, our last two contestants will be asked to survive on less than the men. The average Social Security benefit for older women is $11,900, so that's what our female contestants will receive. Unfair? you say. Outrageous? Sure it is, but this is a "reality show" and that's the reality.

"When do you think they'll stop calling for benefit cuts?" asks McAfee. "Probably in the first episode." He's probably right. Chances are that our contestants live in pleasant communities, surrounded by the nearness of family and friends. That'll be the first thing to change. There may be tearful farewells to children and grandchildren and lifelong friends, as our contestants move to urban slums or the distant and fading outposts of the American dream.

Our next dose of reality: Our male contestants will be living on $1,166 each month, and the women will have $991. After those premiums are subtracted they'll have $866 or $691 for all their monthly needs. (And let's hope they don't have out-of-pocket medical expenses.) Rent? Food? Transportation? These amounts will have to cover everything. Our contestants may not know what it's like to live like this, but here's their first lesson: Monthly budgets are too long-term when you're subsisting at this level. If they're lucky enough to pay no more than $500 per month for rent and utilities, our male contestants will now have $85 per week for all other expenses and the women will have $44.27.

Is our reality show "real" enough for you yet, contestants? Are we "living on the edge of subsistence" yet? Eating bugs and snakes for a few weeks is probably starting to look pretty good by comparison.

What would we call this reality show? Survivor? The name's been taken. The Real World? Taken. Extreme Makeover? That one's taken too. American Chopper? Not quite right, although would be a good name for what the Deficit Commission is trying to do right now with our benefits.

Here's the reality: Generations of Americans benefited from a three-legged system that ensured their financial security in old age. The first was the pension system, which has been gutted by employers. The second was savings and personal assets, which for most households have been decimated in the last several years. And now the only remaining leg, Social Security, is under attack.

"It's not a benefit cut," proponents claim. "We just want to raise the retirement age." But many people who live in the reality show we call "life" can't work until we're seventy. Their jobs are physically demanding, or there aren't any jobs to be had. Raising the retirement age means less money for them. (Of course, it also means less money over a lifetime for those who retire at seventy, too.) Social Security's the most conservatively managed, financially stable public program we have. It has survived multiple economic downturns. Its greatest threat right now comes from our would-be contestants.

Some deficit cutters will promise that lower-income people will not see benefit cuts. But any cuts will break the covenant under which workers have paid payroll taxes for a lifetime. And the question remains: Where will you cut? If you say you won't do it for people living on $44 per week, what about those whose total income adds up to $65 a week? $75? $100? What will satisfy you? And what assurances will we have that you won't break your promise again someday?

When it comes to tampering with Social Security, millions of Americans are already living the reality we just described. The next one to "play" it may be the teacher who taught you to read, or the nurse that brought you back to health ... or your mother and father ... or you. Hey, look! The show's about to begin. Some of the faces look awfully familiar .. .

Hey, America! It's time to meet our newest contestants!
____________________________________

(1) I thought "Budgetball" sounded like a cross between The Fountainhead and Death Race 2000, but if Peterson plays this game I promise to reconsider.

(click here to send a message to every Washington politician on the campaign trail: Hands off Social Security!)

(The reality show remarks occur at 2:30.)
____________________________________

Richard (RJ) Eskow, a consultant and writer (and former insurance/finance executive), is a Senior Fellow with the Campaign for America's Future. This post was produced as part of the Strengthen Social Security campaign. Richard also blogs at A Night Light.

He can be reached at "rjeskow@ourfuture.org."

Website: Eskow and Associates


 

Follow Richard (RJ) Eskow on Twitter: www.twitter.com/rjeskow

 
 
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HUFFPOST SUPER USER
lindalu
02:12 AM on 08/05/2010
SENIORS 2010: no COST of living; higher ins premiums, less coverage, perscrip drug prices up; dr fees up; utilities up; food prices high; ......BUT THEY BAIL OUT THE CROOKS ON WALL STREET, BANKS, AUTO DEALERS, MORTGAGE COMPANIES, AND BIG BUSINESS AND THEIR CROOKED CEO'S AND THEN GIVE THEM SELVES A BONUS...THEN I HEAR SOME FED EMPLOYEES GOT DISAB CHECKS IN ERROR (HOW DOES THAT HAPPEN) FIRE THEM AND WHO EVER GAVE IT TO THEM...HONESTLY...THEN THEY CUT DISABLED BENEFITS..THIS IS GOING TO FAR AND UNLESS SENIORS, DISABLED SPEAK UP THEY WILL KEEP PUSHING YOU BACK TO THE STONE AGES. WAKE UP SENIORS, AND DISABLED...BLOG CALL YOUR CONGRESS MEN AND SENATORS...MAKE THEM LISTEN
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HUFFPOST SUPER USER
pandag
A false tale often betrays itself. Aesop 620 BC
02:09 PM on 08/04/2010
Let the Tea Partiers & their ilk opt out, fine by me. But those who have an IQ that reaches room temp. would really like to continue living. How can we get lost in their blather of tax cuts for the rich, bailing out Wall St., financing all sorts of countries, wars, DOD, on and on; all the jobs moved off-shore over these past years and not realize the direction things are going? Just today I heard that the billionares are giving half their income to charities, well that's fine & good, but don't wait for a check that will keep you living indoors to arrive each month for you personally. How can people not see this?!?!? Trickle down means "dumped on you" and not in a good way. (End part 2 of 2). Sure hope the moderators let these posts go through.
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HUFFPOST SUPER USER
pandag
A false tale often betrays itself. Aesop 620 BC
02:07 PM on 08/04/2010
Thank you Richard! I have copied this paragraph: "Here's the reality: Generations of Americans benefited from a three-legged system that ensured their financial security in old age. The first was the pension system, which has been gutted by employers. The second was savings and personal assets, which for most households have been decimated in the last several years. And now the only remaining leg, Social Security, is under attack."

This really sums it up! If we don't fight back we will end up destitute and without any remedy. That's why Soc. Sec. was started - to avoid such an outcome! For the love of Pete, when will the sleeping giant (us) finally wake up and stop this attack?!?! Bush considered it his "greatest failure" to not have privatized Soc. Sec. - that should have gotten everyone's attention but didn't - wasn't it scary enough for everyone? This year, no cost of living increase, again why aren't people going after their representatives to demand that they secure & fix Soc. Sec. for good?!?!? If it weren't for Soc. Sec. my life would be in ruins, it's my only source of income now - see Richard's paragraph above. Those who would destroy Soc. Sec. are playing for keeps and the game has started, heck, it's probably just coming up end of half-time & our team's still sitting on the bench. (End Part 1)
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HUFFPOST BLOGGER
Lowell Thompson
Artist, writer, recovering adman
10:06 AM on 08/04/2010
Maybe I missed it, but there doesn't seem to be any attempt in your clever little article for real world realities. It's always easy to condemn policies by exaggerating extremes.

For instance, maybe people who have personal incomes of...say...$100,000 or more should not be entitled to the same Social Security benefits as those with incomes of...say...$10,000.

Why? Because the very purpose of Social Security is to provide basic living expenses for those of US who need them after we can no longer work, not to give rich folks extra money to waste however they want.

The idea that they deserve it because they paid into it appeals only to the most selfish, heartless and greedy. By that rationale, they would only get police, fire and utilities they pay for as individuals. Maybe they should be happy they were lucky enough to not need it.

The very idea of civilization is based on some sharing and sacrifice for the good of the whole and providing the basic needs of fellow humans in society.

Right?

http://buythecover.com
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HUFFPOST BLOGGER
RJ Eskow
10:37 AM on 08/04/2010
Right. That is, you did miss it. My piece contains several rebuttals to your position: First, those who would cut Social Security insist that they won't do it for low-income people, but won't say where they would draw the line. Second, they're breaking a career-long promise by cutting these benefits, and offering no assurances that they won't do it again and again.

They would cut benefits from a self-funded program - one which needs a long--term tweak but is the most stable public program we have - in order to pay for two wars and a set of tax cuts that disproportionately benefited the wealthy. That's wrong. You've got the Pete Peterson cliches down to a "t' - "sharing and sacrifice for the good of the whole" - but this is forcing the middle class (and probably lower-middle as well) to disproportionately subsidize the comfort of Pete Peterson and his ilk. That's not the basis of the civilization I want to leave for my children.
HUFFPOST SUPER USER
pyro
Fire in the kilns, lets fill all empty bowls.
11:00 AM on 08/04/2010
Any body can make statements like "that's wrong".

Ok, here is one:

Rich peoplel getting social security checks, "that's wrong".
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HUFFPOST BLOGGER
Lowell Thompson
Artist, writer, recovering adman
12:19 PM on 08/04/2010
RJ,

Maybe I missed it again, but I still don't think you answered my basic point. (And judging from the other comments here, I'm not the only one). Maybe you're talking too much "inside baseball" for me. I'm not a policy wonk, so you need to speak in plain English.

Where do you come down on making sure only people who really need Social Security get it? And as JB would say, "Please, please, please" don't speak in code.

OK?

http://buythecover.com

BTW: I'm about as far away from Pete Peterson and his clichés as humanly possible. So answer my point instead of using Pete as your easily beaten-down strawman, OK?
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HUFFPOST SUPER USER
timm0
It's impossible to have too many malasadas.
11:03 AM on 08/04/2010
I have no issue at all with a needs test of $100K. If the system was established and modified to serve as a defense against the decimation of elderly after they are unable to productively work, then it certainly wasn't implemented to give wealthy folks mad money. Far better to use it to improve the conditions of those on the fringes of poverty.
08:41 AM on 08/04/2010
Clever idea and great article! THANK YOU for spelling out the truth about SS benefits (including medicare). During the healthcare debate it bugged me that the "radical" proposal was to convert our current travesty to a "medicare for all" system and people who hear that think medicare is such a fabulous freebie. Not so - compared to all other countries. Medicare recipients pay $100 month, a yearly deductible, about 20% for whats covered and generally pay for prescription drugs. Try that on the average Social Security benefit of $14,000. Medicare recipients are expected to pay for INSURANCE (it is expected that NO ONE in this country escape from having to profit insurance companies!) to cover the 20% medicare doesn't cover and the many medical services they don't cover.
The average male on SS receives $1,166 each month, and the woman $991 to live on every month.
And this is not "free" money. Its paid for by working for decades and investing in the system.
Its OUR MONEY, our safety net, and some sleeze bags in D.C. have been drooling for years to sacrifice it to Wall St.
08:22 AM on 08/04/2010
This commission might be "bi-partisan" for the purpose of political cover, but any administration which allows their bad decisions to be implemented through law or otherwise, will go down and take the party in power with it.

The gaggle of clueless blowhards clearly is powered by Wall Street greed, and not any interest at all in the welfare of US citizens. The same powers that destroyed the middle class are now turning attention to those no longer able to work for income. The demise of structured pensions, the destruction of value in our 401k's and home investments, and the incredible difficulty for people over 50 to get or keep a job in this economy make Social Security more essential than ever before. Moreover, it is a source of consumer spending in an economy that needs it.

We should remove the cap on income on which the SS tax is paid (for Medicare too!), and means test Social Security. Fat-cats like the people on this commission, the Wall Streeters who destroyed our middle class economy, and anyone with $150,000 annual income (or more ) from other sources in retirement does not need SS income to survive decently. The rest of us have been bankrupted and left desparate for this income.
12:23 AM on 08/04/2010
Treat SS as an annuity, you get back only what you pay in.
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HUFFPOST COMMUNITY MODERATOR
PunKinPai
Tact is just not saying true stuff. I’ll pass.
03:02 AM on 08/04/2010
Great, while somebody -- government, bank, Wall Street -- gets to play with our money for decades, we only get back what we put in. Is that what you expect from YOUR investments?
12:19 AM on 08/04/2010
How does Singapore have such high living standards and home ownership without welfare hand outs?
02:40 AM on 08/04/2010
Google Singapore. It's very interesting place with a colonial past like us, but with different ideas on to run government. They have subsidized housing, food and heath care and only 6 million to look after.

The one thing I find interesting is every male does two years of service and learns to shoot a weapon. The irony is that guns overall are not allowed. One of their motto's are "Just because there's low crime, it doesn't mean there's no crime."
08:43 AM on 08/04/2010
"subsidized housing, food and heath care" but scampy123 says no "welfare handouts"?
So who knows what they're talking about here. My guess is TheReturn.
"Welfare handouts" ----- you mean like the tax breaks corporations gets?
You mean the handouts to mining companies and oil companies?
You mean the handouts to Wall St.?!
12:15 AM on 08/04/2010
If Congressional Republicans have their way, Social Security will be cut or eliminated, while Bush tax cuts for the wealthy, which have contributed trillions of dollars to the deficit yet have done nothing to help the economy for the last 9 years, will remain in place. Yeah, that makes a lot of sense.
08:45 AM on 08/04/2010
So why do the republicans hold us hostage to this system where they have at least 50% of the power?
They are obviously not interested in representing the people and solving our problems.
How will we ever be represented and have any problems solved with our current system?
11:41 PM on 08/03/2010
It is all too easy for those with sufficient wealth not to need Social Security to try to cut it for those who really do need it. At the same time as hypocritically advocating for tax cuts for the most wealthy and funding two wars where much of the money goes to line the pockets of crookster corporations. When did it become a crime in this country to be less well off?
This user has chosen to opt out of the Badges program
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11:14 PM on 08/03/2010
You can get nancy pelosi and steny hoyer to COME ON DOWN in your next episode.
Maybe obama can be one of the judges as the whole *let 'em cat food* commission was his idea.
11:37 AM on 08/04/2010
Nany Pelosi is purposely vilified by the Republicans because she is effective. She is tough and she
has always produced bills that are good. They get stalled or blocked in the Senate, but that is
not her doing. Watch what she does, not what the people who want her defeated says. They are
scared to death of her.
10:31 PM on 08/03/2010
The Treasury Securities amounting to 3.3 trillion dollars are in the SS Trust Fund. These people want to raid the retirement fund of the middle class by claiming it bankrupt Then they they won't have to buy the Treasury Securities out of the Trust fund. If the income tax limit is raised , SS will be secucre for at least 75 years. The very wealthy are afraid they will have to pay the taxes they owe on billions of dollars that have accumulated tax free. They don't want to have to help pay the deficit with their billions. They would rather raid the main retirement fund of most Ameericans.

People are right. Everyone has to keep on raising cain because this is where that Commission
sure seems to be heading. People on this commission started harping on SS, Medicare, and
Medicaid cuts right out of the starting gate. Itr seems to me they call in Economists from the Right Wing and it drives me mad. Where is the likes of Paul Krugman?

They talk about needing jobs but they refuse to consider that we need to stop giving corporations tax breaks to take their factories overseas.
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HUFFPOST PUNDIT
500 a
PATRIOTS AGAINST THE PATRIOT ACT !!!
10:35 PM on 08/03/2010
Exactly. People in their fifties who are out of work are spending their 'nest egg' and are making withdrawals from their IRA accounts. The American Worker has been stabbed in the back. I guess they want us to just die on the sidewalk when we reach 70.
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HUFFPOST COMMUNITY MODERATOR
PunKinPai
Tact is just not saying true stuff. I’ll pass.
03:03 AM on 08/04/2010
I hope not. They will have eliminated street cleaners and garbage collectors by then.
09:44 PM on 08/03/2010
just remove the income cap on ss.

Give the conservatives the flat tax

they always claim they want....
11:36 PM on 08/03/2010
Flat tax with absolutely no deductions, write offs, sheltering, or avoidance of any sort.
12:05 AM on 08/04/2010
yup, that's ss.
11:17 AM on 08/04/2010
I ask you to study the Flat Tax further. I have always been taught that it is actually a regressive tax on the working and middle class. We do need to do away with some deductions that are abused, for instance donating goods to a charitible organization and
obtaining a receipt for the supposed value. For instance,I have heard of people who run around collecting clothing and goods from people who do not itemize and then giving it to charities and using it as a tax evasion, or they get a receipt for a very inflated figure when it item may be almost worthless. There are many examples of cheating on deductions.
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HUFFPOST COMMUNITY MODERATOR
Sysaphean
08:46 PM on 08/03/2010
Every time I hear someone youngish say "Social Security won't be there when I retire", you know what my reply is? It SURE won't be, if you don't get off your A** and take to the streets, if necessary to fight for it. I have no intention of sitting around while what I have paid into for years is robbed for the benefit of Wall Street and Conservative politicians.

Not on my watch. That goes for ANY Democrat' as well, who in anyway aids and abets the gutting of this most durable and worthwhile safety net.
HUFFPOST SUPER USER
myth buster
10:39 PM on 08/03/2010
And I have no intention of buying into a scam if I can avoid it. What makes you think any of my peers want to fight for it either?
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11:19 PM on 08/03/2010
You need to educate yourself on the insurance aspects of the program and realize that it will keep you from a very bad life should you be injured -- even in your early years.
http://www.ssa.gov/disability/
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HUFFPOST COMMUNITY MODERATOR
PunKinPai
Tact is just not saying true stuff. I’ll pass.
03:06 AM on 08/04/2010
Been buying into the rightwing garbage, haven't you? It's not a scam, and it's not nearly broke, and it will be there when you need it if some tweaks are made now (like eliminating or raising the annual earnings cap). Please do some more research, especially if you "youngish" folks don't want to have mom and dad living in your basement.
HUFFPOST SUPER USER
CroatianCritter
is keeping people honest
08:36 PM on 08/03/2010
Do you want to know what the reality is? The bankers and big business interests are going to get our Social Security. They will never stop the propaganda campaign until they can at least turn the agency over to private hands and pillage us for trillions of dollars of fees. The problem is that these interests own our government, media and control our financial supply. These interests will never allow us to shrink the tool that they use to control us which is the United States government. I don't know what we can do to stop this. People do not seem uncomfortable enough yet. A few riots in the streets and non-stop protesting could be a good first step. Any suggestions?
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HUFFPOST COMMUNITY MODERATOR
Sysaphean
08:47 PM on 08/03/2010
Terminate all video game feeds to the internet. That should do it.