iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Richard (RJ) Eskow

GET UPDATES FROM Richard (RJ) Eskow
 

Six Degrees of Social Security: The President, the Senator and the Billionaire

Posted: 09/07/2012 2:06 am

President Obama and Vice President Biden both gave powerful speeches this evening, summoning the ideal of an inclusive nation and effectively distinguishing their mainstream American views from their opponents' radical right-wing vision. The only real false notes were the passages in which they both embraced a right-wing set of proposals known as "Simpson Bowles."

That means they were embracing a plan which would cut Social Security benefits and raise its retirement age. It also means they were embracing the ideology of a small network of well-funded individuals who are determined to take our country down the austerity path that is destroying Europe - and who may be personally antagonistic toward the President as well.

"Now," said the President, "I'm still eager to reach an agreement based on the principles of my bipartisan debt commission." Vice President Biden said of their opponents, "they rejected every plan put forward by us, by the bipartisan Simpson-Bowles Commission they referenced or by any other respected group."

But that commission offered neither "principles" nor a "plan" -- in part because Republicans like Paul Ryan wouldn't raise taxes of any kind, but also because some liberals on the commission refused to go along with its proposed cuts to Social Security and Medicare. As a result, it never agreed on any recommendations.

The President and Vice President are actually referring to private proposals put forward by Alan Simpson and Erskine Bowles, the co-chairs of that deadlocked group. Those proposals would cut Social Security through a variety of means, would cap the Medicare budget (which is effectively the same as cutting it), and -- once you cut through all the doubletalk -- would actually cut tax rates for corporations and the wealthiest Americans, while raising them dramatically for everyone else.

Simpson is a former Republican senator, while Bowles is an ex-Democratic staffer and Morgan Stanley director. Both are longtime allies of conservative hedge fund billionaire and former Nixon Cabinet member Pete Peterson, a long-time adversary of Social Security, Medicare and government's rightful role in our society. Peterson-funded organizations provided staffers, as well as ideological guidance, to the Simpson Bowles Commission.

Those staffers worked under the direction of David Walker, who was CEO of the Peter G. Peterson Foundation until he left to lead an affiliated Peterson organization called the Comeback America Initiative. Who is David Walker? He's a former Comptroller General of the United States, a longtime Peterson operative and a featured figure in the rabidly anti-Obama film just released by Dinesh D'Souza, the far-right apparatchik whose attack book against the President was hilariously entitled The Roots of Obama's Rage.

The roots of his rage? Whatever you think of his views, the cool-headed Barack Obama is arguably the least rageful public figure this country's had in many years. If that title isn't designed to trigger the "angry black man" fear gene in pale right-wingers, what is?

Walker is given five minutes or so in a movie which targets Obama, the leader who allowed Walker's own staffers to affix the Presidential seal to their own work. That's gratitude for you. And while Walker might not have known how much of a hate piece the movie would become -- although how could he have not, given D'Souza's past writings? -- he has yet to repudiate it.

The Peterson network is determined to foment hysteria about something that is not our most urgent economic problem. As Joe Firestone notes, government spending (as a percentage of GDP) has been higher in this country at other points in history, and many economically healthy countries spend more.

The Peterson crowd is nearly as fond of publicity gimmicks as it is of cutting Medicare and Social Security. My favorite such attempt was something called "Budgetball," which we called "a blend of Ayn Rand's The Fountainhead and Deathrace 2000." The latest initiative is "10 Million a Minute," a national "bus tour" to promote the evils of spending ... well, of spending American money on American goals for American people.

Call it the "Magical Misery Tour": Somehow the Peterson crowd thought that it would electrify the nation to see Walker, a former Comptroller General, ride around on a converted Greyhound (or whatever vehicle they've purchased) with other aging anti-government types. As part of that initiative, Walker co-authored an op-ed with Ross Perot -- for the youth of America that must have been like getting Andre 3000 back together with Big Boi -- and that's when the fun began.

Sen. Bernie Sanders fired back with a letter to the editor which said, among other things, that the bus tour "is funded almost entirely by Wall Street billionaire Pete Peterson, who has pledged to spend $1 billion of his fortune on a campaign to cut Social Security and other vitally important programs while slashing tax rates for the wealthy and large corporations."

Walker responded, "The Peter G. Peterson Foundation is not funding this tour at all -- not one cent. Instead, the funding is coming from my own speaking and writing fees, and contributions from others with varying political affiliations."

"Astroturfing" -- giving a richly-endowed group the appearance of a grassroots organization - seems to be a common tactic for the Peterson crowd. The Peterson Foundation itself says that Walker's group "has received a three-year grant from the Peter G. Peterson Foundation which funds most of its operations." Walker said "I am very grateful to the Peter G. Peterson Foundation for offering the support and resources that will help make the Comeback America Initiative a reality."

Peter G. Peterson: To you and me, he may be an anti-government billionaire. But to David Walker, he's "the wind beneath my wings."

The precise truth may not be known until the Peterson Foundation and all its related groups open their books to outside review. But there is a close-knit network of operatives with closely-knit funding sources and a common purpose: cutting Social Security and Medicare, while lowering taxes for the wealthy and corporations.

Why does this matter? Because David Walker, a longtime Pete Peterson employee, is the chief architect and ideologue of the so-called "Simpson Bowles" plan. And he's prominently featured in a propaganda piece which is not only profoundly conservative but is also fervently and personally anti-Obama.

For their part, both Simpson and Bowles have offered effusive praise for radical right-wing Republican Rep. Paul Ryan. Last time we looked, Paul Ryan was on a national ticket -- running against Barack Obama and Joe Biden.

The "Simpson Bowles" plan, which has been astroturfed as the product of a "bipartisan commission," is a conservative anti-government wish list framed by Pete Peterson, executed in large part by David Walker, and delivered by a Simpson/Bowles/Walker triumvirate that appears to stand in personal opposition to Barack Obama and Joe Biden -- and is certainly in ideological opposition to the views so eloquently presented in their speeches.

Polls show that socialist Senator Bernie Sanders, by contrast, is articulating the views of most Republican voters -- as well as voters overall -- when he opposes the Simpson Bowles agenda for Social Security and taxation. In this upside-down world of phony publicity rackets and astroturfed activism, the socialist speaks for Republicans while the Democrats embrace their ideological foes.

It's time to untangle the knots and expose the anti-Social Security network to the light. Perhaps the socialist can help Democrats reclaim their party's signature achievements. The President and Vice President should repudiate Simpson Bowles, which was little more than a Trojan Horse in the Democratic convention hall, and unequivocally defend Social Security and Medicare.

 

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

FOLLOW POLITICS
President Obama and Vice President Biden both gave powerful speeches this evening, summoning the ideal of an inclusive nation and effectively distinguishing their mainstream American views from their ...
President Obama and Vice President Biden both gave powerful speeches this evening, summoning the ideal of an inclusive nation and effectively distinguishing their mainstream American views from their ...
 
 
  • Comments
  • 107
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
04:16 PM on 09/21/2012
Thu May 17, 2012 at 09:19 AM PDT
Peter George Peterson
by Karen Hedwig Backman Daily KOS
The man who calls himself Peter George Peterson is not really Peter George Peterson.

The real Pete Peterson was an old fisherman who used to fish for bullheads on Backman Lake in South Dakota, who adored my mother under the bemused eye of my father.

When fishing season began, Peterson would present himself to the lake with his fishing pole, to my mother with a huge bouquet of tiger lilies. My mother, Peterson's goddess of the lake, would blush becomingly and the fishing season commenced.

The man who calls himself Peter George Peterson was born Petros Georgios Petropoulos on June 5, 1926 in Kearney, Nebraska, to Georgios Petropoulos, who ran a diner in Kearney.

.... The man who calls himself Peter Peterson never, ever fished for bullheads on Backman Lake in South Dakota and never, ever presented my mother with a huge bouquet of tiger lilies.

http://www.dailykos.com/story/2012/05/17/1092236/-Peter-George-Peterson
This user has chosen to opt out of the Badges program
photo
11:37 PM on 09/10/2012
A few weeks ago , biden said Obama was not going to changem a thing with S.S.
At the convention, seems obama has said other wise---which is it?
photo
HUFFPOST SUPER USER
Joe Economist
Risk Manager
09:03 AM on 09/11/2012
They are going to change the system but it will appear as nothing because the only people affected will be non-voters.
photo
HUFFPOST SUPER USER
carolebeverly
08:36 PM on 09/12/2012
We're fighting for future generations as well.
photo
IgnoranceIsStrength
Don't ask me, Google it yourself !
01:10 PM on 09/09/2012
The surpluses Clinton left for Bush were enough to pay off the entire US debt by the time that the Social Security/Medicare trust funds would have to be amortized for beneficiary payments, all without having to raise taxes to pay for the amortization of those trust funds. The surplus Bush inherited was made up almost entirely of excess payroll taxes building up the trust funds. Bush took those excess payroll tax receipts and gave them “back” as income tax reductions, heavily weighted to the wealthy–who didn’t create those surpluses in the first place. By doing this, Bush guaranteed that taxes would have to be raised in order to amortize the trust funds. The failure to do so simply permits the Republicans to steal the money contributed by workers for their retirement. Everything about not raising taxes or limiting expenses, is about stealing our money.

http://www.offthechartsblog.org/comparing-the-social-security-shortfall-and-the-cost-of-the-bush-tax-cuts/
photo
HUFFPOST SUPER USER
carolebeverly
01:37 PM on 09/09/2012
Wow! This is the first time that I have read that the "surplus" was made up of payroll taxes, which is horrifying and fraudulent. General government should be supported by general purpose taxes, not dedicated taxes. The link you provided does not explicitly address this issue; do you have other sources?
photo
IgnoranceIsStrength
Don't ask me, Google it yourself !
02:59 PM on 09/09/2012
Something to read,

http://www.angrybearblog.com/search?q=social+security
photo
HUFFPOST SUPER USER
Joe Economist
Risk Manager
09:20 AM on 09/11/2012
That isn't exactly what he is saying. And this goes to our other conversation, don't waste your time with OffTheCharts or AngryBear. Go to real source information, like CBO, CRS, SSA. The government makes mistakes, but at least they aren't paid to make to make them.

Clinton left Bush projected-surpluses not real ones. His projections were based on capital gains taxes generated by the internet bubble. His economy was heavily influeced by Y2K work. No one projected the kind of job losses that came out of the collapse of Y2K work. The projections didn't include another 50% drop in the QQQ. The projections didn't include 911. So read the 'surpluses Clinton left' in the same context that you read 'once upon a time.'

Go to facts. Bush borrowed more from excess payroll taxes than anyone. His administration borrowed more than all other presidents combined, something like 1.2 trillion. This sum financed a considerable amount of the stimulus non-sense passed by Bush, including 2 $300 welfare checks to the entire nation, increases to EITC, and kiddie tax credits. These weren't for the rich, in fact the rich were excluded.
photo
HUFFPOST SUPER USER
hipocampelofantocame
retired pediatrician
05:42 AM on 09/09/2012
I guess that we'll have to meet all of those bad guys in the corral.
We have a dichotomy of interests, and we are the substantial
majority underdogs. Heads up.
02:01 PM on 09/08/2012
Why should millionaires pay a flat social security tax to fix social security? The only flat tax should be federal taxes. Everyone knows that 8% social security tax on a struggling middle class family really isn't that much money. An 8% social security tax on a jet setting Lindsey Lohan could really put a dent into her party scene. Better we cut granny's social security benefits instead.

Thank heaven Obama is on the right side of this issue. Praise be to the democratic party elites for not even suggesting such an obvious solution.
photo
HUFFPOST SUPER USER
Joe Economist
Risk Manager
09:23 AM on 09/11/2012
The reason that Obama is on the wrong side of the issue was spelled out by FDR who created the program. He rejected the original draft of the system because it was a 'public dole'. He realized that if the system was not a earned interest, politicians would tamper with benefits. The system would be nothing more than a political priority. You may think it is a good idea, but the guy who built it thought it was a foolish one.
10:34 AM on 09/12/2012
So why is the idea a foolish one? The "public dole" argument is ridiculous given that social security revenues are used to fund government for all sorts of spending, including military spending.  If spending is general then so should be the tax.
04:47 AM on 09/08/2012
I have one very simple question. If the social security trust fund operates without financial input from the general tax fund intake of the federal government but rather from social security taxes which are levied as a different tax and go into a separate fund how could social security possibly be tied to the country budget woes? We have been told all of our lives that the social security withdraw from our paychecks which does not go on a line with federal taxes but rather by itself, is put in a social security trust fund to accumulate until it is needed. From the facts I have read the United States borrowed 69 billion between fiscal years 2010 and 2011 in a one year period of time from this fund. So how does this affect government spending on other things? I would like to suggest readers that your retirement fund has been pilfered by politicians over the years and now that the government is broke they cannot pay it back. We know they removed 69 billion just last year. Just how much has been taken? This money should have nothing to do with the money taken in by the federal government for general spending, defense, etc. And it should have nothing to do with balancing the budget. Am I correct?
08:22 PM on 09/08/2012
Yes, you most certainly are. The SS fund should be solvent at lest until the year 2034, and with some tinkering (i.e. an end to regressive taxation ) could last the rest of this century.
photo
HUFFPOST SUPER USER
hipocampelofantocame
retired pediatrician
05:50 AM on 09/09/2012
David: Yes, but the money hasn't been stolen,
just "borrowed". It's still there when needed,
and if the SS tax cap is pushed a bit higher,
SS is funded for the next 75 years. It's smoke
and fear.
HUFFPOST SUPER USER
kella
04:20 PM on 09/09/2012
Yes, and telling the people that is going to be a strain because of people living longer and the amount of Baby Boomers.
photo
HUFFPOST SUPER USER
hipocampelofantocame
retired pediatrician
07:43 PM on 09/10/2012
carolebeverly: Thanks for your faves.  hipo
10:15 PM on 09/07/2012
Dear Mr. Eskow,
Time to connect the dots that you've been laying out the past 3 1/2 years. Obama's choices of advisers makes it kind of easy, yet because he is a 1/2 black, cool guy with a "D" after his name, too many liberals and Dems refuse to see that his words do not match his actions. Thus the title "the more effective evil," as Glen Ford of Black Agenda Report dubbed him.
photo
HUFFPOST SUPER USER
Joe Economist
Risk Manager
05:18 PM on 09/07/2012
Are the Trustees of the system part of this evil anti-Social Security network. They have said that the system has a 20.5 trillion dollar shortfall, and have urged immediate reform. Today - under good conditions - the system may last as long as 21 years. Every day that we wait makes building a solution that much harder.
HUFFPOST SUPER USER
Konnie
GOP = GOLDEN CALF OLD PARTY
10:30 AM on 09/08/2012
The solution is atually obvious and simple. Just remove the $110,000 income cap. Do you realize that some people reach their cap with their first paycheck of the year? And never have another penny deducted for the rest of that year?. And why do the hand wringers never consider that the rich guy will never need a social security benefit. Not all of them will reach 62 or 65 with big bucks. Why do they not see that the long term stability of the populaton is more important than a few bucks they won't miss in those big paychecks. Do they really want to live like the Mittals in India? Living in a highrise, surrounded by millions of staving and dying people.
photo
HUFFPOST SUPER USER
Joe Economist
Risk Manager
11:34 AM on 09/08/2012
First, that doesn't solve the problem according to the Social Security Administration. It doesn't even make the system solvent.

Second, you do not understand what Social Security is. You see it as a tax and redistribute model. It isn't. It is structurally a contributory benefits system where benefits are suppose to be tied to contribution.

Third a better solution is to use existing government programs which provide for people in need. Why is it that progressives want to turn a program like Social Security into something it was never intended for and doesn't do well anyway - it has no vision into need.
photo
HUFFPOST SUPER USER
Joe Economist
Risk Manager
11:36 AM on 09/08/2012
Separately, FDR rejected the public dole form of Social Security and required that it be re-written as a contributory benefits system. His reasoning was sound, the more it is a public dole. The more likely future voters will vote it away as priorities change. He wanted something that was earned that the politicians can't take away. Ever the ink dried, Congress has done everything it can to undermine that vision. It is sound thinking.

At some point, people worried about the debt will see that we raised taxes for our retirement account and put the rest of government on their credit card. Your proposal makes Social Security highly unstable. It is a foolish idea for a system that serves millions of people with few choices.

Priorities will change. If we are going to raise taxes they should be used to paydown the debt not patch-up a failing government program.
photo
HUFFPOST SUPER USER
Jay Daterman
Dump The Teapot
01:05 PM on 09/07/2012
I think Obama talking about Simpson-Bowles is being done to highlight Ryan's positition and his refusal to raise taxes on the rich. It is likely a dare to lure teagop into re-opening debt reduction talks then whacking them when they refuse very openly once again to raise taxes on the already wealthy and to show their hell bent determination to wreck SS and Medicare/Medicaid. At least I hope he is not serious about that so called plan.

Simpson-Bowles also flirted with ending the mortgage interest dedcution whioch would sned the middle and upper classes into howling hissy fits. Even teagop is not stupid enough to risk that. They will dump ion the poor endlessly instead.
photo
HUFFPOST SUPER USER
marignymitch
E pluribus unum percent
12:38 PM on 09/07/2012
O's commitment to Simpson-Bowles is a commitment to cut SS. What kind of Democrat is he?
12:29 PM on 09/07/2012
Obama is not at all committed to truly defending Social Security and Medicare, he appointed the "commission" and he was ready to cut SS benefits in his infamous "Grand Bargain" with Boehner. Obama is not a progressive in any sense of the word.
photo
HUFFPOST SUPER USER
ttsgw
Atheist and secular humanist
12:19 PM on 09/07/2012
They are all within the first degree.
photo
HUFFPOST SUPER USER
carolebeverly
09:54 AM on 09/07/2012
While I knew about Peterson and Walker, I hadn't realized how directly involved they are in the Simpson-Bowles Commission. The thing that baffles me is why Obama is involved at all. He appointed these people and has welcomed Peterson's involvement, but there is absolutely no upside for him in doing so.

Cutting Social Security benefits, in light of all of the tax cuts awarded to the One Percent and the major cause of the budget deficit, and oil drilling in the Arctic are the two issues that make it most difficult for me to vote for him again as I am adamantly opposed to both. These are issues of principle, not ideology, as Obama appears to believe, and any reduction in benefits is a betrayal of those principles. Moreover, Obama knows how toxic this issue is, which is why he never talks about it publicly, other than in veiled and Orwellian terms, as he did last night ("responsible measures to strengthen Social Security."). The American people are overwhelmingly opposed to cuts.

Since apparently "we are the ones we have been waiting for," I strongly urge everyone who believes in the principles upon which Social Security is founded to write to the President and tell him that any cuts (including reducing the COLA) are completely unacceptable. The only acceptable way to "strengthen Social Security" is to "scrap the cap" on payroll tax levies.
This user has chosen to opt out of the Badges program
08:28 AM on 09/07/2012
Yes, the Simpson/Bowles “plan” is “certainly in ideological opposition to the views so eloquently presented in” Obama’s and Biden’s convention speeches. But that’s just their speeches. Obama has made it pretty clear that he’d like to cut Social Security; that’s why he instituted his famous “payroll tax holiday” (talk about Astroturfing!), which looks on the surface like a gift to working people, but in reality began the process of starving Social Security of funding so that it can be destroyed more easily down the road. That’s why he *voluntarily* put cuts to Social Security and Medicare on the table in the agonizingly ridiculous “debt commission” discussions in 2011. He can make all the pretty speeches he wants; that’s what he does. But please stop pretending that he’s firmly opposed to shredding what’s left of the social safety net.
08:38 PM on 09/08/2012
I so do agree. The payroll tax holiday sounded fishy to me also. To tell the truth, I don't really know where Obama or Romney stand on SS - I think it is probably just 6 degrees of separation!
photo
HUFFPOST SUPER USER
hipocampelofantocame
retired pediatrician
06:07 AM on 09/09/2012
susanino: Who let the dogs out? OMG, you
people are really desperate.
05:57 AM on 09/07/2012
OK. I'm pretty shocked. Is anyone up there on our side (with the usual exceptions like Sanders, Greyson, etc.)? We so need more voices to battle the lies and speak truth!
photo
HUFFPOST SUPER USER
Alain Lareau
10:51 AM on 09/07/2012
I can not make you engage, or anyone else, I can offer you dialog on what a real solution is and how to fight for it. People are sitting, yes you are SITTING and many people complain rightfully so. Have you even played that game king of the mountain. The wall Street crowd and the people they work for are pushing you off the edge, literally, and people are sitting legs crossed, arms folded, complaining at the top of their lungs and getting pushed off one by one. Any kid know that to even have a chance he has to team up with others and push the big off first then they can play some more.
photo
HUFFPOST SUPER USER
Joe Economist
Risk Manager
07:24 PM on 09/07/2012
So you are calling the Trustees of the system liars?
09:43 AM on 09/09/2012
No. The Trustees know that the projections are dependent on the GDP growth. If we beggar the middle class, as our leaders have been doing, then Soc Sec is in trouble. If we strengthen the middle class, with infrastructure rebuilding, supporting labor law reform that will redistribute profits from the executive and renter class back toward workers, we'll find, as in the late 1990s, when there was an employment surge, that the year of reckoning is pushed back. The trustees admitted a few years ago, and never wanted to admit again, that if we use the same GDP growth from 1960 to 1975 and applied it to the next 15 years, the entire delta in Social Security showing up in the mid 2030s disappears and the Baby Boomers retire and die without any reduction in benefits whatsoever. You may want to consult with Michael Hiltzik, Dean Baker, Robert Pollin or other economists who study this. Kevin Drum has noted this in his blog several years ago. Funny how this never reaches the cocktail circuit of the political elite in either wing of the Property Party.
photo
HUFFPOST SUPER USER
carolebeverly
01:13 PM on 09/09/2012
By the way, Joe, what is your "Fix for SS?"