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Richard (RJ) Eskow

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For a State of the Union Home Run, the President Should Stand Up for Social Security

Posted: 01/22/2012 5:57 pm

Like a lot of former Obama voters, I've had my issues with the president. Sure, it helped when he sang that Al Green song at the Apollo Theater last week. (Good job, Mr. President! Good pitch and an appropriately understated delivery.)

But in a time of uncertainty people are looking for certitude. In a time of great battles people are looking for strength. They don't just need to hear the words when they listen to their leaders. They need to feel the music.

The State of the Union address is scheduled for this Tuesday night. The president can go a lot further toward winning over voters who are disappointed, doubtful, or just unenthusiastic, if he chooses an issue that's vitally important to them and offers a clear, strong and unequivocal defense.

Social Security is the ideal issue. It's one of many, according to polls, where both parties are out of step with voters. After seeing their savings, pension plans, and housing values destroyed, people are frightened about their retirement security. They don't hear anybody in Washington offering to protect their benefits.

And to borrow a phrase from Rev. Al, they're tired of being alone.

People's Choice

Last year the president narrowly averted political disaster in his State of the Union address. He bowed to outside pressure and abandoned an ill-conceived plan to propose cutting Social Security benefits and a partial lifting of cap on payroll taxes that fund them. But a form letter from the White House illustrates the administration's still-squishy position on both Social Security and Medicare.

The White House is clearly preparing for an economically-themed, pro-99 percent speech this week. A chart is clearly visible on its SOTU website, although its still just a preview, showing the difference in pay between the average worker and the average CEO. In a short video, Presidential advisor David Plouffe tells viewers that charts and other information will be available there after the speech.

As President Obama continues his electoral-year pivot toward populism, Tuesday night's offers the perfect chance for a home run. There's no better way for the president to start the year than with a vigorous, unambiguous defense of Social Security -- and Medicare, too.

Poll after poll has shown that Americans -- including most Republican voters and Tea Party members -- oppose cutting Social Security to balance the Federal deficit. So it's a good thing that the President scrubbed that proposal from last January's SOTU. Republicans would have rejected it and then spent the next two years running as the defenders of Social Security, much the same way they ran as defenders of Medicare in 2010.

(Sure, that's insanely hypocritical from the party of the radical Ryan proposal to dismantle Medicare. But that's never stopped them before, and it won't stop them this year either.)

Evasive Maneuvers

Yet for some reason -- perhaps because they believe Republicans will have a change of heart and cut a deal on Social Security, and don't realize how hated such a deal would be -- the president and his team continue to equivocate on Social Security. They continue to say only that they won't "slash" the program -- although the proposals they've considered are pretty slashing for recipients.

A recent form letter, received by a friend who expressed concern about proposed Social Security cuts, shows that the equivocation and evasion hasn't stopped. "Dear Friend," the letter said, "I have heard from many Americans who are concerned about their retirement savings... Retiring with dignity is a promise we must keep to all Americans, and I am working hard to strengthen our retirement system."

The letter goes on to say:

That is why I am committed to protecting Social Security and addressing Americans' concerns. Social Security cannot be subjected to risky privatization plans because the future of hard-working Americans should not be left to the fluctuations of financial markets.

To better secure their retirement and prepare for unforeseen circumstances, Americans must also save for their future in other ways. We are laying the foundation for all individuals to participate in workplace retirement accounts. Employees would be automatically enrolled in pension plans and could opt out if they choose. Simple and automatic enrollment makes it easier for people to plan for retirement. This would assist the 75 million working Americans -- about half the workforce -- who lack access to retirement plans through their employers...

Thank you, again, for writing.

Sincerely,

Barack Obama

Anger Management

My friend's reaction wasn't what they were looking for. She was furious. She hadn't written to express her concern about her "retirement savings," but to ask for the President's reassurance that he won't cut Social Security.

The GOP privatization plan is off the table and she knows it. And the paragraph about opt-out pension plans confused her. "Isn't that the Republican privatization plan?" she asked.

She's paid her Social Security contributions all her life, and she was asking if her benefits would be there when she retired. Instead she felt she'd gotten the runaround, with an evasive run of double-talk, with a little lecture about her own moral failings ("Americans must also save ...") thrown in for good measure.

Real Bipartisanship

This is a problem but it can be fixed, and the State of the Union is the perfect place to do it. People are anxious to hear a rigorous defense of Social Security and Medicare. Here's why this issue is a winner for the President:

Social Security isn't in danger. He can explain why during Tuesday's speech, and then back it up with information on graphics on his SOTU website. He can use the work of Ronald Reagan's chief Social Security actuary to reinforce his point.

The president can push his favored bipartisanship theme, but this time he'll have a truly bipartisan position. Most Republicans want Social Security preserved. He can link to this report, prepared by a bipartisan panel of experts under Republican President Dwight D. Eisenhower, to rebut the most common (and completely false) anti-Social Security talking points. (They were around in 1958, and in 1935 too.)

President Obama can also use this as an opportunity reinforce the fact that government has a vital role to play in our society, and that there are some things it can do better than private businesses can. He can point to the military, the police, public health, education -- and to private benefits like Medicare and Social Security.

Soul of a New Machine

The administration's SOTU website displays its mastery of form, which now needs to be matched by a mastery of content. That means simple, direct and clear statements like "We will not tolerate any cut to Social Security -- not on my watch." And "we won't let them be cut directly -- or indirectly, by raising the retirement age or lowering the already-inadequate cost of living increases people receive."

The president's team has a truly impressive mastery of political technology. Now they need to infuse that technology with a simple, forceful message that resonates in the heart.

David Plouffe tells viewers that the speech will be about a government that "works for the middle class," around the themes of "a fair share, a fair shake, and fair play." Social Security is a perfect fit for that message:

A "fair share" is asking the wealthy to pay a more proportional contribution for Social Security and Medicare.

A "fair shake" means not cutting benefits for people who have worked all their lives.

And "fair play" means not punishing the rest of the nation because a radical upward distribution of income has created an easily fixed long-term imbalance in Social Security.

The president has a great opportunity on Tuesday night. By defending Social Security -- and making a firm commitment to ensuring that benefits aren't cut -- he can tell voters that, in Al Green's words, "You ought to be with me."

If he does, come November they'll be more likely to say "Let's Stay Together."

(Now it's time for Rev. Al -- in his decidedly pre-reverend days -- to remind us what we're all really looking for.)

This post was produced as part of the Strengthen Social Security campaign.

 

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

Like a lot of former Obama voters, I've had my issues with the president. Sure, it helped when he sang that Al Green song at the Apollo Theater last week. (Good job, Mr. President! Good pitch and a...
Like a lot of former Obama voters, I've had my issues with the president. Sure, it helped when he sang that Al Green song at the Apollo Theater last week. (Good job, Mr. President! Good pitch and a...
 
 
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08:02 AM on 01/24/2012
If this is the speech you think will help Obama set the tone for what is to come during the general election then both the author and Obama have no clue what is going on in this country.
Obama WILL BE protested for extending and expanding the Patriot Act, going after whistle blowers, NDAA, SOPA, drones, war, the bailouts and so much more.
You all seem so lost and clueless about the mood in this country.
A speech about SS? ROFL
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HUFFPOST PUNDIT
Tommygun264
2Q2BSTR8
11:15 PM on 01/24/2012
Right, because Gingrich & Mittens are SO much more progressive on these issues. Look at the polls - the restrictions on our civil liberties and other issues you raised are nowhere near the top of the list of what the majority of Americans are concerned with at this time. The economy, jobs and yes, the social safety net which includes Social Security are the issues ranked more important to the majority. Whether it's right or fair is immaterial and your sense of moral outrage is not going to sway public opinion. I admire and agree with your ideals, but ideals don't win elections.
07:55 AM on 01/24/2012
"Social Security is the ideal issue."

What?!?!? Seriously, most young people already know they will NEVER see a dime of the SS money that has been stolen from their paychecks. Both the Democrats and the Republicans looted the SS fund, which now sits empty and full of IOUs, while we borrow money from China with interest to pay current beneficiaries.
The social contract was broken by both parties and to think for even a moment a speech about "saving SS" is going to remake the contract Obama himself allowed to break...well...NOT GONNA HAPPEN.
I WANT OUT OF SS. I reject your attempt to steal from me. You do NOT have my consent.
It's over, and if you wanna blame someone, blame yourself.
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HUFFPOST PUNDIT
Tommygun264
2Q2BSTR8
11:19 PM on 01/24/2012
The meme that Social Security is insolvent is a myth & will only come true if you let them get away with defaulting on the $2.6+ TRILLION in Treasury Bonds in the SS Trust Fund. Notice no one is talking about defaulting on th bonds eld by China & the 1%. why is that?
12:21 PM on 01/25/2012
It does need adjustments to keep it sustainable long-term, but yes, it's in much better shape than is commonly believed.
12:22 PM on 01/25/2012
The money was stolen. It was invested in Treasury bonds. When those bonds mature, the money is paid back with interest.

EDUCATE YOURSELF.
02:02 PM on 01/23/2012
The president should propose lifting the cap on social security tax to ALL income from ALL sources. Only on the employee side on not the employer side. This would go a long way in securing social security and making taxes more equitable.
01:21 PM on 01/23/2012
At this point in time does it really matter what he SAYS? He has certainly made his will known for quite some time now--for anyone with the eyes to see.
Caveat emptor.
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HUFFPOST SUPER USER
TRex86
Enjoying life in West Ohio
10:59 AM on 01/23/2012
What's good about social security? Nearly everything--and what's bad is fixable. It's a 75 year-old compact between younger Americans and seniors. It has actuarial problems with the Boomers but current retirees have a bargain, getting back more than they paid in. In any case it's a measure of our decency that we care for the least of us. If it's welfare so what; if it's 'dependency" so be it. As a civilized society we DEPEND on each other.

What's not good is the undue burden the payroll tax places on labor. While this seemed safe financing when the lifespan was 65 years it has become a highly regressive tax, the HIGHEST paid by 80% of Americans, a wealth transfer from low/middle income earners to (a few) affluent elderly, and a bonanza for high earners whose rate of taxation is nil. The years of surpluses funds were borrowed to offset income tax deficits (to a degree). Now nearly 3 trillion of our debt is money borrowed from social security. The Republicans want to cut SS, in order to avoid this large claim on their INCOME TAXES. Quite simply we should either eliminate the cap on FICA (adjusting the rate so that it is only slightly revenue positive) or fund it with progressive income taxes. Medicare and social security are among the proudest achievements of our nation. We must stand by them and continue to "promote the general welfare."
HUFFPOST SUPER USER
steve-in-abq
02:15 PM on 01/23/2012
"It's a 75 year-old compact between younger Americans and seniors." Or is it a 75 year-old compact between the young Americans and the seniors of the 1930's?" The young Americans I know would rather not participate in the system. Most middle-aged people I've talked to would rather not participate in the system. That freedom to choose thing again. Why can't steve-in-abq just go away? Trust me, you don't want that, I fund your social programs. You're welcome, Not.
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HUFFPOST SUPER USER
TRex86
Enjoying life in West Ohio
03:24 PM on 01/23/2012
Why don't you read my entire post and try again?
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HUFFPOST SUPER USER
TRex86
Enjoying life in West Ohio
07:46 PM on 01/23/2012
"Most...I've talked to don't want..." Hardly a meaningful sample size. I'm aware however that younger people are skeptical that social security will be there for them. The logical answer is to make sure that it is not done away with it. You can choose to save as much money as you want while paying the payroll tax (read what I wrote, please). You can't choose not to pay your taxes. "Promote the general welfare" means exactly what it says. We formed a nation so that ALL OF US CAN BENEFIT, not so that the tiny fraction at the top can exploit everyone else.
10:29 AM on 01/23/2012
Social Security yes. Over a workers lifetime, the payroll tax has taken a lot of money that people could have used to fund their own reitrements. It is wrong to take it away after it has already been paid for.

Medicare no. As a mature individual, I will soon be eligible for Medicare so I have a personal stake in this. Unlike Social Security income, Medicare funds can only be used for health care. Medicare is also a bottomless pit because each individual has access to unlimited resources to maintain his or her health. The only beneficiaries of this direct subsidy of a specific component of the U. S. economy are people employed in health care fields (doctors, nurses, administators, pharmaceutical industry employees, etc.). Recent studies have shown that 5% of the population cosume over 50% of health care costs. Yet, we're subsidizing 100% of those over age 65. If everyone in the country paid for their own day to day health care costs (office visits, vaccines, prescriptions, etc.), costs would plummet because patients would price shop if they were paying directly. Insurance (public and private) should be reserved exclusively for catastrophic costs associated with rare events.
HUFFPOST SUPER USER
avacat
09:55 AM on 01/23/2012
The author of this post is forgetting that Obama put Soc.Sec on the table during the last budget fracas and it did it without being asked.
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Grichde
Little Hope, Wrong Change
09:38 AM on 01/23/2012
Warren Buffet gets a sweet heart deal from Obama. 

Once completed, the Buffet gets one massive incentive payments for the Topaz Solar company. 

The Buffet gets a break on his federal taxes equal to (get this) 100% of the cost of the project. This “Bonus tax deduction” can be used to reduce federal taxes in the year that that the project is first completed. 

Berkshire Hathaway paid 29% taxes in 2010. This would imply that it would opt for the cash payment of 30% $600,000,000. But BRK is actually faced with a statutory tax rate of 35%. Therefore the value of the tax reduction could be as high as $700,000,000.  (Warren can engineer any income necessary to max out the tax deduction.)

First solar (one of the few proven solar companies) Sept. 23, 2011 - After getting a $1.93B conditional loan guarantee from the DOE earlier this summer, DOE now says its 550MW Topaz project won't meet the necessary qualifications for a Sept. 30 deadline specified under Section 1705 of the Energy Policy Act.  Deadline extended for Warren Buffet to meet the approvals. 

Coming on the heels of the Solyndra debacle, were Obama lost 1/2 billion dollars on an unproven technology the Obama administration has just approved a $168.9 million loan guarantee for the Granite Reliable wind farm project owned by Brookfield Asset Management (BAM). Clearly a corporation with enough financial worth not to need federal loan guarantees. Brookfield Asset Management, worth at least $150 billion.
09:22 AM on 01/23/2012
SS the biggest PONZI ever perpetrated on American citizns by LIberals of course
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HUFFPOST PUNDIT
Tommygun264
2Q2BSTR8
11:01 PM on 01/23/2012
Do you consider auto, health & life insurance a ponzi schemes? Because that's what Social Security is - insurance to help those who can no longer work due to injury, illness or old age. In addition to learning how to spell "ponzi" you should learn the definition. A ponzi scheme is unsustainable because it pays out at an unsustainable rate. Social Security does not. The $2.6+ TRILLION surplus was established in the past to cover the Increase in baby boomers retiring today - IT WAS CREATED FOR THE PURPOSE OF COVERING THE SHORTFALL. Paying out more than it is taking in at this point is not an unanticipated crisis, it's working according to design. Periodic adjustments to SS are also part of It's design. The only people pretending not to understand this are the criminal element of the 1% who want to plunder & destroy SS & the middle class to create a permanent servant class, and their willfully ignorant minions duped into working agaist their own self interest. Which are you? The only way Social Security goes bankrupt is if we allow them to default on the $2.6+ TRILLION in Treasury Bonds held by the SS Trust Fund. Let them default on the T Bonds held by China & the 1% first - nobody is talking about THOSE bonds being "worthless IOUs".
08:08 AM on 01/24/2012
"Do you consider auto, health & life insurance a ponzi schemes?"

I consider those choices. I do not consent to SS. I don't want it. I reject your "social contract".
If you want it fine, have at it, but I should be able to opt out.
You have no right to steal my labor to fund your social programs.
09:19 AM on 01/23/2012
Do you mean the SS fund that Bill Clinton raided to balance his budget and the gov. now has I O U'S in a vault in washington owing taxpayers 2.7 trillion dollars.You mean that SS?
And they have the nerve to tell Seniors that the fund is unsustainable....Of course it is with Democrats using it as a slush fund
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HUFFPOST SUPER USER
mater
mater
08:51 AM on 01/23/2012
I hope the President will express support for Social Security and medicare. For injured, elderly, challenged people, it's what we have to count on. It isn't very much but it helps alot. What we've spent on the wars would probably keep these programs solvent for a long time.
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HUFFPOST SUPER USER
ekstatik
Granfalloon-free!
08:30 AM on 01/23/2012
Thank you, Mr. Eskow. Your articles are invaluable.
HUFFPOST SUPER USER
bestoftimes1
07:56 AM on 01/23/2012
Maybe not de-funding SS would be a good idea, but buying votes is all O knows what to do
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syrius
Excuse me, EXCUSE ME!
07:27 AM on 01/23/2012
All he has to do is say he loves his one
07:12 AM on 01/23/2012
working retired SRS. have paid their fair share why would the govt. go after the one of the poorest of the poor to reduce the defict? to me just not fair . SRS. as it is now make choices food or meds never mind going to drs. so please explain to me why its their fault the govt.is in such a mess. other ways to help reduce deficit : cut govt. waste example 100.00 for a screw driver, stop wars we have lost to many of our young as it is, no more bailout big business , tax big business if They move out of U.S., no more aid to other countries period, no more aid to illegals they get more than some of our own, no more free rides cars, jet want a vac. pay for it we do {{ if we could afford one}} GET OFF THE BACKS OF SRS, CHILDREN, VETS, DISABLED.
schatsie
banks are more dangerous than standing armies
08:10 AM on 01/23/2012
Exactly, when the middle 60% pay 5-10% of their NET WORTH in taxes every year and people like Warren Buffett and Romney pay .001% of their net worth in taxes every year, you have to wonder what we are really doing in the Middle East and why SS has not received COLA adjustments every year. And that doesn't even touch the fact that the rich deduct EVERYTHING, how do you think Warren can afford a Corporate Jet and a Compound in California on a so called salary of $100,000.... It is only the 99ers that really pay taxes, the SS tax of 12.4% and the Medicare Part A tax of 1.5% only apply to WAGES.....God forbid they should apply to income over 110,000.......
09:23 AM on 01/23/2012
If they move out of the US we could charge them for selling their products in this country. Or we could quit buying from them.

Wall Street loves GE/Jeff Immelt who Obama appointed to chair a new President's Council on Jobs and Competitiveness. Immelt was labeled a crony capitalist by the right and a destroyer of American jobs by the left. He has sent many jobs overseas.

Obama has some 'splaining to do.

They are sacrificing what we have worked all our lives for. I think our money is subsidizing businesses overseas. We are making the rich richer with our money they take or keep.. You know, so they can do to others what they have done to us.