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Robert J. Elisberg

Robert J. Elisberg

Posted: August 10, 2010 09:34 AM

The Republican Party has, again, been rumbling about getting rid of Social Security. Or rather, "fixing" it, in their parlance. Much the same way Las Vegas developers "fix" old casinos, dynamiting them to dusty non-existence.

In late July, Rep. Paul Ryan (R-WI) released his Republican "Roadmap" of budget proposals, which included moving Social Security to private accounts -- something the bipartisan Congressional Budget Office later estimated would cost more than the current system. (He also suggested privatizing Medicare, albeit with voucher payments whose rates grow slower than skyrocketing health-care costs.)

With little question, these proposals would, indeed, wipe out the budget. Unfortunately, they would also wipe out Social Security, Medicare, and most elderly Americans.

Republican Minority Leader John Boehner (R-OH) however called the proposals, "a pretty good list of options."

No doubt, since a month earlier Mr. Boehner had been speaking with the Pittsburgh Tribune Review about Republican priorities for economic cuts. "I think Social Security would be the most logical place to start. It's just a matter of numbers."

Most likely, the real human beings whose lives would be affected by the cuts might quibble about being considered just "numbers," but that's semantics. Minority Leader Boehner added that he wants to not only reduce payment, but move eligibility to age 70. Further, he'd like to stop paying some people who are otherwise eligible for Social Security. "If you have substantial non-Social Security income while you are retired," he asked, "why are we paying you at a time when we're broke?"

Why, indeed?! Of course, one reason we're paying these people is because, during the course of their lives, they actually paid money into the Social Security system and are legally owed it back. But that's nit-picking. By the same Boehner logic, though, one might ask, "Why are we cutting taxes for the wealthy at a time when we're broke?"

It should be noted that many of John Boehner's comments about cutting Social Security came in the context of how we should pay for the Afghanistan War.

This is a continuing mantra among Republicans. Sharron Angle, running in Nevada for the U.S. Senate, wants to get rid of Social Security, although she calls it an adjustment. Out of existence. "Tea Party" darling Rand Paul, Republican nominee for senator from Kentucky, disdains Social Security as nothing more than a Ponzi Scheme and, like John Boehner, wants to raise the age to 70.

Privatizing Social Security was something George Bush brought up when he was president. It died a fast death. Yet John McCain brought it up again when he was the Republican standard bearer. Mr. Bush's plan would have cut benefits by 1 percent each year for many people -- that meant a 20 percent reduction after 20 years of retirement.

How critical is Social Security? The nonpartisan National Academy of Social Insurance (NASI) has estimated that if seniors had no Social Security to rely on, but only their "other" income, nearly half "would be poor."

And yet the Republicans continue to push cutting Social Security. Because that's who they are. Here's the thing -- and let's be blunt:

Should any political party attempt to abolish Social Security, unemployment insurance, and eliminate labor laws and farm programs, you would not hear of that party again in our political history. There is a tiny splinter group, of course, that believes you can do these things. Among them are a few Texas oil millionaires.... Their number is negligible and they are stupid.

And here's another thing:

That quote above isn't mine. It was said by President Dwight Eisenhower. On November 8, 1954. And if his point is not clear, it is about his own Republican Party. Because Democrats have never tried to cut Social Security -- they created it.

But Republicans have been harping about getting rid of Social Security since it was introduced by Franklin Roosevelt. Republicans hated the program in 1935, and been fighting to gut it for the past 75 years. They called Roosevelt a "socialist." They called him a "dictator." They compared him to Adolf Hitler.

Sound familiar? The Republican Party is an old, broken record against Social Security. And it's a record that a near-totality of Americans remain adamant against. While the far right dreams of ending Social Security, a recent NASI poll shows 88 percent of Americans say Social Security is "more important today than ever." Yet Republican politicians, for 75 years -- and today, more than ever -- keep trying to gut it.

Because that's who they are.

If Dwight Eisenhower was around today, he'd be vilified by his own Republican Party for saying what he did over half a century ago. Yet it holds just as true today -- if any political party attempted to abolish Social Security and unemployment insurance, you would not hear of that party again. They are a tiny splinter group, and their number is negligible and they are stupid.

Yet once again -- and again and again -- the GOP tries to do just that. And here today they are once more trying to abolish Social Security. And filibustering in the Senate to withhold unemployment insurance. And still calling any president who opposes this a socialist and comparing him to Hitler. Again and again. And again. It's who they are. And they keep telling us. This isn't about Barack Obama. Or Franklin Roosevelt. It's about the Republican Party.

For 75 years this month, the Republican Party has hated Social Security. And they keep trying to fool you that all they want to do is just "fix" it. "Adjust it."

But in the words of George Bush, "There's an old saying in Tennessee -- I know it's in Texas, probably in Tennessee -- that says, fool me once, shame on -- shame on you. Fool me -- you can't get fooled again."


 
 
 
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11:46 AM on 08/11/2010
Social Security IS a Ponzi scheme, entirely dependent on new 'investors' to pay off those ahead of them, without investing the monies in a way that they will grow. Only problem is, if you pay out to people who never paid in, or if the demographics change, then the investment is in big trouble. 7% of a persons income is substantial at any level. And what's fair about not getting ANYTHING in the event of an early death after a working lifetime of paying in? Private accounts would allow investors to at least leave 'their' money to their heirs. Dozens of other countries have privatized part of their national pension accounts, most notably Chile, allowing citizens more control over their wealth.
10:58 AM on 08/11/2010
The post talks about how some people should not receive social security because of the income they receive outside of social security.

"If you have substantial non-Social Security income while you are retired," he asked, "why are we paying you at a time when we're broke?"Why, indeed?! Of course, one reason we're paying these people is because, during the course of their lives, they actually paid money into the Social Security system and are legally owed it back."

--- I agree with the authors sentiments that they are legally owed the money. But they are also required to take it. Why not have an opt out option? If Bill gates does not want to receive Social Security he should have the option to decline the money. Not everyone would decline it, but I am sure there are some people in this country who would refuse the money. Why not give them the choice of receiving social security.
09:36 AM on 08/11/2010
Ohh, ok. It must of course be the case that the only reason people would want to change social security is because they are stupid....
01:13 PM on 08/11/2010
Stupid is favored epithet in these here parts. I'd rather be slandered with 'evil', but then that would require making moral distinctions.
09:18 AM on 08/11/2010
It is truly incredible that a party working for the interests of 5% of the population can manage to get the votes of close to 50% of the population. Something is wrong with this picture.
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tacevad
American SS Card Carrying Socialist
09:16 AM on 08/11/2010
repost from AUG 5 :
“Instead of raising Social Security Retirement age we should be looking to lower it. Offering early retirement to those 55 and older even at a lower rate than the current 62 1/2-63 would help solve unemployment two ways, opening jobs for younger(cheaper) workers and getting the near retirement aged people off the Unemployment roles.It would also keep many of them in their present housing which will lower mortgage default/bankruptcy rates.Paying for this is simply a matter of removing the cap on earnings.â€

I wonder how clear the Republicans must make it for the American Public to finally understand that the Republicans in congress are not working for the people
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JimR
08:38 AM on 08/11/2010
Agree the GOP wants to destroy it, but SS is going to need adjustments. It will eventually run out of money otherwise.
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Carl Caroli
Give peace a chance
08:34 AM on 08/11/2010
The Greedy Old People are only interested in helping themselves, not the rest of the country. Anyone that votes for them is voting to eliminate any safety net for those of us unfortunate enough not to be millionaires. And they call themselves christians.
03:04 AM on 08/11/2010
I'm not old enough to remember first-hand, but didn't Social Security come about after the collapse of Wall Street in the Crash of '29?

Didn't Wall Street recently just about self-destruct in the wake of deregulation that allowed financial institutions to do what the laws passed after the Crash of '29 prohibited, so there would not be another crash?

Why would we want to put all our money in the stock market? I lost my retirement there. The divorce took the rest, and now all there is, is Social Security. I was never rich, but I thought I was going to be OK.

With the economy in a dungeon due to Republican and Democratic tinkering, and jobs being few and far between, I'd hate to see life in America WITHOUT Social Security.

Lincoln was a Republican. So was Teddy Roosevelt. What happened to that Grand Old Party?
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Jay Jefferson
01:05 PM on 08/11/2010
Lincoln and Roosevelt were dead before social security even existed and Roosevelt left the Republican Party and started the Bull Moose party which resulted in Woodrow Wilson becoming president and the creation of the Federal Reserve.
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Emmanuel Gonot
02:45 AM on 08/11/2010
"Should any political party attempt to abolish Social Security, unemployment insurance, and eliminate labor laws and farm programs, you would not hear of that party again in our political history. There is a tiny splinter group, of course, that believes you can do these things. Among them are a few Texas oil millionaires.... Their number is negligible and they are stupid."

Traitors like those should be easy to spot in any country and shunned by the electorate forever, but there's something dissonant about the picture to an outside observer like myself . You said they've been attempting to gut social security for the last 75 years - if the statement above was true, it follows that they shouldn't have lasted as a major political party that long. Why does this party which clearly works against the interest of the vast majority of Americans continue to hold power and even from their minority position, able to block or delay crucial legislation? Why has no one exposed them for the real enemies of the people that they are?
03:07 AM on 08/11/2010
That is a very good question, and one I have long pondered. Why DO the masses of ordinary citizens support a party that steals from them and cheats them?

Fear. False Evidence Appearing Real. They fear the opposition. All those who have been demonized by the very party that tricks them and enslaves them.
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MajorKong
If the pilot's good, see, I mean if he's reeeally
01:21 AM on 08/11/2010
They want to fix it in the same way that cutting off your head would fix your sinus infection.
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jimme
They're Right, but never correct.
11:36 PM on 08/10/2010
John McCain,okay,his wife,is worth $100m,yet he still collects his $1600 monthly check. That to me is wrong,but you won't hear any repubz saying anything about that.
If georgie boy would've had his wish we'd all be in serious trouble. Privatize is a code-word for giving it to my friends or connected donors.
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SmileAndActNice
Utilitarianism, the -ism that works.
12:41 AM on 08/11/2010
He paid in. He is entitled to his share out.

And, more importantly, the program is in no financial risk whatsoever that would require any kind of benefit cutting, even the easy cutting like denying benefits to wealthy retirees who don't depend on the SS income.

If we were in trouble sure, he'd be the first to go. But we aren't. Not even remotely close. All the doomsday scenarios are based on misinformation. Like using population graphs showing the demographic shift to more old people per young person and ignoring the fact that we actually will have more **contributors**-per-retiree than we used to because old timey women didn't do work that got taxed while modern women do.

The ONLY danger is letting the republicans who have borrowed from the trust fund ( at 5.5% interest ) pass an act of congress defaulting on repayment. Executive order can't even do it it takes an act of congress.

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http://en.wikipedia.org/wiki/Social_Security_Trust_Fund
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If we let them walk away with the 1.5 TRILLION they've borrowed to fund their wars then yeah, SS is in trouble.

And yeah, they may have to raise taxes to pay that back. But call it what it is, a War Tax. And if you don't like paying it END THE WARS.
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doctorkosan
PhD Chem E, HBS
09:49 AM on 08/11/2010
It is called SS Insurance. As in car insurance, if you don't need it, why collect it?
A simple means test would help solve the SSI solvency problem. Gates, Buffet and yes McCain don't need to collect, it is simply another tax by another name.
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jmdziuban1
Heeey, Mr Spaceman.
05:24 AM on 08/11/2010
Privitize is code for give it to wall st, to prop up stock prices. Make social security a safety net for wall st.
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10:57 PM on 08/10/2010
The Democrats should be hammering Republicans with that Eisenhower quote over and over and saying that the Republicans want our money and our bodies to fight and enlarge their illegal wars, but alas the Democrats are so stupid and disorganized, they'll never know what to do with good ammunition when they have it.
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dtairtime
It is what it is
09:42 PM on 08/10/2010
Social security is an easy fix for someone with guts.

Simply remove the people who have never paid a cent into it from getting anything - a lot more then people then you'd think. If a old guy gets a young girl pregnant that child gets SS until they are 18. There is no reason for that. If a guy makes enough money that his wife can stay home she gets about 38-50% of his check simply for being married to him - his check is NOT reduced. A dual working couple doesn't have this option nor does a single person.

Second, after that is done we look at a method to remove the fraud problems from the disability portion. Disability is a great program and very hard for some people to get on it but many estimates show about 25-35% of people are not disabled. Case in point is the children who get it by their parents saying they have asthma or some other health concern. Correct me if I'm wrong but disability is for people to get help who can't work. I would rather see the truly disabled get a little more and the savings go back into the program then see someone take advantage of it.

Have the wealthy pay up to about 500K a year. Won't hurt 'em at all.

Lastly we have the people work a just a little bit longer. After all the other things we probably don't even need to do this.
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SmileAndActNice
Utilitarianism, the -ism that works.
12:26 AM on 08/11/2010
We don't need to do any of that.

All we need to do is hold the militaries hands to the fire and make them pay back the money they borrowed.

The ONLY danger SS is in is that the people who borrowed from the fund won't pay it back. And it is against the law for the federal government to not pay back it's debts. So they have to.

And if we were going to default it is a no brainer that we would default on foreign debt first, not debt owed to American citizens.

SS has a 2.4 trillion surplus. Yes that will shrink as the boomers retire but their retirement was what the surplus was bulked up for. The people screaming that its in the hole are projecting numbers out DECADES which is idiotic. Furthermore, they are the same people who have been screaming about the programs imminent collapse for three quarters of a century.

They've been wrong for 75 years and they will, doubtless, continue to be wrong for several centuries more. Then maybe they'll get sick of being wrong and stop whining.
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dtairtime
It is what it is
11:15 AM on 08/11/2010
How are they going to do that?

Seriously I know you have a good idea but it just brings up the blood from a turnip saying. You're never going to get it and we aren't ever going to get rid of the military - at least as long as about 100 nations that would love the chance to hurt us still are around.

So in the real world we need real answers and solutions - right? That means stopping the stupid programs that have no need and serve no purpose. An added bonus is that they are just stupid - paying someone money simply because they are LUCKY enough to get married to someone who is LUCKY enough to make enough that they can make that DECISION to stay home just isn't right. Anyone whe makes the case that some love child of an old man should get SS simply because his dad was LUCKY enough to find a young girl to have sex with is no reason to tax others to pay for that child.

SS is in trouble right now just as your budget would be in trouble if you were spending more then you make but had a bank account to draw from. You wouldn't be too smart if you didn't look at the long range implications of that situation would you? Especially if you had obligations to your kids who also paid money into that bank account.
09:24 PM on 08/10/2010
While in power the Democrats have accomplished significant legislation that will affect the country for many years to come. I don't think you can underestimate the importance of SOME type of health reform or stimulus or Wall Street reform. At least they did something. Republicans seem to want to do nothing, saying 'no' over and over. Except for 2 recent exceptions from Maine, I cannot count the number of times legislation has been filibustered, or threatened to be, by the R's in Congress. This strategy hurts the confidence of the public. Instead, they turn to scare tactics and visceral appeals to drum up support. Also, we have to remember that we voted the D's into power in 2008, mainly because the country was fed up with the policies of the last 8 or so years. We need to look to the future again now.
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09:21 PM on 08/10/2010
Isn't it the OBAMA ADMINISTRATION saying they're going to *fix/cut* SS this time?