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Roger Hickey

Roger Hickey

Posted: September 1, 2010 12:05 PM

Hundreds of thousands of Americans have now called for Senator Alan Simpson, co-chair of the White House deficit commission, to step down -- after he insulted the head of the Older Women's League, Ashley Carson, by implying that her dedication to protecting retirees was not "honest work" -- and then he revealed what he thinks of Social Security: "a milk cow with 310 million tits."

Simpson eventually apologized, and White House press secretary Robert Gibbs stood by Simpson, making it clear that the Obama administration would not send him packing back to Wyoming -- unless perhaps the clamor gets louder. At least Gibbs had the smarts to distance President Obama from the substance of Simpson's remarks. But the silence from commission co-chair Erskine Bowles and commission members like economist Alice Rivlin, Democratic Senator Kent Conrad and Republican Paul Ryan has been deafening. They should be a little worried about his obnoxious style, but the truth is Simpson speaks for a large number of deficit commissioners who want to cut Social Security.

So if the White House won't fire Simpson, the president should tell the deficit commission to take Social Security off the table.

The real problem is not Simpson. Most of the commission members agree with Simpson that Social Security benefits should be cut and the retirement age should be raised. They all know that Social Security has its own stream of revenue and contributes nothing to the federal deficit. But this conservative commission majority either wants to "send a message to the bond markets" that America is willing to whack seniors -- or they want to steal money from the trillions of dollars in the Social Security trust fund built up through years of extra FICA taxes paid by working Americans and use those savings to cut the deficit caused by tax cuts for the wealthy.

Simpson has just been blunter about the plan to steal money from the trust fund. In another hostile confrontation, Simpson told Alex Lawson of Social Security Works that the Social Security trust fund has been spent. Here's what he said, in his disrespectful style:

Simpson: Listen $2.5 trillion of IOU's which have been used to build the interstate highway system and all the things people have enjoyed since it was set up. Lawson: Two wars, tax cuts for the wealthy -


Simpson: Whatever, whatever. You pick your crap and I'll pick the real stuff. It was to do with the highway system; it was to run America. And those IOU's in there now, there's not enough coming in every month.

There it is folks. Deficit hawks like Simpson think it is way too hard to take their deficit mandated serious: finding revenues to pay for the deficits wracked up by years of tax cuts and military spending. Instead, they want to show they are tough by raiding the Social Security trust fund by cutting retirement benefits for future retirees who have been paying extra to keep our retirement system solvent.


The small number of progressives on the commission have made the case over and over again that Social Security contributes nothing to the deficit. But the hawkish majority, refusing to call for raising taxes on the rich or cutting the military budget, thinks going after the trillions of dollars in the Social Security trust fund is the "confidence-building" consensus accomplishment they will be able to unite around. But the American people won't let them. Poll after poll, including CAF/Greenberg, finds that Americans of all stripes, Democrats, Republicans, tea party supporters and young people HATE the idea of balancing the budget by cutting Social Security.

So please keep exposing Simpson as the undiplomatic spokes person for the deficit hawks. But this should be our new demand: If the White House Won't Fire Simpson, the Deficit Commission Should Keep Their Hands Off Social Security.

And let's keep telling the truth: Social Security contributes not a penny to the deficit; therefore reducing benefits won't reduct the deficit. Social Security's trust fund has enough assets to pay current benefits for the next 27 years. If needed, modest changes that will increase Social Security revenues could extend the program's solvency for decades into the future. But this Commission, stacked as it is with enemies of Social Security - and fronted by Alan Simpson, is not the appropriate vehicle for making those fixes.

House Speaker Nancy Pelosi, speaking at Netroots Nation in July, got it right:

When you're talking about reducing the deficit and Social Security, you're talking about apples and oranges. If we want to have a conversation about Social Security and how we keep it solvent, what are the things we can do to keep Social Security solvent way down the road so it's there for future generations, that I believe is an appropriate conversation. It shouldn't involve reducing the benefits or raising the limit or whatever, but you could talk about how you keep it solvent. To change Social Security in order to balance the budget; they aren't the same thing, in my view. That isn't what we should be doing. So, I will admit and accept the fact that as we make Social Security solvent--and it is solvent for the next into the 2030s--it will have a positive impact on the deficit, but we shouldn't be looking for reducing benefits and raising ages and all the rest, period, and we certainly shouldn't be doing it to reduce the deficit. Two different sides of the ledger.
Note: The Campaign for America's Future, which has helped lead the charge against Simpson, now has an action petition going to send this message: If the White House Won't Fire Simpson, the Deficit Commission Should Keep Their Hands Off Social Security. Click here.


Also, CAF is working with MoveOn.org Political Action, CREDO Action, Democracy For America, the Teamsters Union, and Social Security Works to encourage citizens to ask candidates for Congress to promise to oppose SS benefit cuts, retirement age increases and privatization. To see who has made the promise, go to www.handsoffsocialsecurity.org.

 

Follow Roger Hickey on Twitter: www.twitter.com/rogerhickey

 
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12:23 AM on 09/03/2010
Mr. Simpson. You are a brave messenger. If you read this, remember our posterity and stay strong.
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HUFFPOST SUPER USER
OBroadhurst
My politics do not meet guidelines.
09:43 PM on 09/02/2010
It's too late. What we need right now is for this commission to be dismantled immediatel­y.
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wrightj
02:11 PM on 09/02/2010
This is what the American people want: Keep SS and Medicare as is and don't touch it. ( we can reduce fraud in Medicare though) We need to reduce our military spending now and use some of the savings for the IRaq and Afghanista­n vets who are returning and the rest toward paying off our debt. We need to let the Bush tax cuts die - the wealthy in this country have been babied far too long and it is high time they get patriotic and pay their fair share. There is no such thing as trickle down economics and we will not allow the rich to be handed the golden egg in hopes some bread crumbs fall my way. If I pay 26% in taxesthe rich should pay 35%. It is still much better than the 90% they used to pay. I also think all tax deductions and loopholes need to be recinded and everyone pay a progressiv­e flat income tax wihch will include bonuses, capital gains, and any interest earned over $200 a year with no chance of any deductions whatsoever­. Could we attempt to be caring and fair or must we keep playing this childish game of I'm rich and better so I don't have to pay game. It is time to grow up and act like a country and not some spoiled brats who want their way.
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csavage
01:15 PM on 09/02/2010
The CBO has been "stealing" from the SS trust fund for decades. If you remove the on-paper "theft" during the Clinton adminstrat­ion, you would see he had deficit spending as well with his "balanced budgets". That's one of the reasons the federal debt was not paid down during the 90s-it was still "funny money".
Ronnie did it, Bush 1 did it, Clinton did it, and so did Bush 2...it's not a new phenomena. I'm sure Nixon did it, too, but the fed debt was not as huge in the 70s. The GOP hadn't turned into the party of Santa Claus and the Easter Bunny, where people could have tax cuts and unbridled spending at the same time, because "deficits didn't matter"
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03:23 PM on 09/02/2010
Clinton did actually submit and sign several balanced budgets, actually reducing the federal budget.
01:05 PM on 09/02/2010
I have news for Mr. Hickey. Alan Simpson can't steal Social Security. The Federal government has alreadfy stolen it. All we have is a buch of IOU's that are looking more and more difficult to collect.
12:36 PM on 09/02/2010
People still think the only rich elected officials are gop folks check the stats just as many are dems just as rich or richer. neither one is able to relate to the people. They both look at voting groups as votes and atm's.
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03:25 PM on 09/02/2010
Both of them have rich people as politician­s, but the GOP is openly the party FOR the interests of Big Money. Big Money is the base that they care about to the detriment of the American people.
09:28 AM on 09/03/2010
Someone said yesterday

No party is looking out for the middle class. May God have mercy on us all.
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Changeizgood
10:16 AM on 09/20/2010
WE have and that's the reason for Rangles's demise. He used substidize­d housing while making six figures and having assets above the cap for subsidy. Fed charge.

Look at Jefferson, he's gone. There will be more to go who steal for the tax payer with back slapping and not paying taxes as much as the IRS rides American workers.

The reason why the middle class and poors tax cuts haven't circulated or been felt is because the top take the most. Why is that.

Don't you feel that is unfair. Why are the "rich" even in our cookie jar in the first place? They don't want to pay taxes, therefore they aren't tax payers. Hedgefunds all around the world hiding their money.

American Workers need to "hide" their Social Security program from the B&E politician­s, who have over stretched their MOUTHS in deals they WILL NOT BE ABLE TO FULLFILL TO THE CORPORATIO­NS.

I believe the Republican­s promised WAll ST our Social Security, because that's all the rubberstam­pers of debt have been talking about for thirty years since REagan. Dems stopped them in 2004's social security privitizat­ion plan, and WE will stop you again.

Get out you covetous thieves!!!­!
Earn your blood dollars somewhere else!
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BlueOnBlue
275 Republicans Voted to Kill Medicare
10:35 AM on 09/02/2010
The Social Security trust funds are supposedly invested in securities "backed by the full faith and credit of the U.S. Treasury."

To say they have "been spent" is to say our government cannot be trusted. How does that send a positive message to bond markets?
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HUFFPOST SUPER USER
allenwsmith
11:51 AM on 09/02/2010
The surplus Social Security revenue was supposed to be invested in marketable Treasury bonds. But it was not. Every penny of the money was spent on wars and other government programs. We were told by the GAO more than five years ago, "There are no stocks or bonds or real estate in the trust fund. It has nothing of real value to draw down."

Hopefully, the bond markets respond to the truth--not to what politician­s say. Surely you are not suggesting that we keep government misdeeds secret so they will not adversely affect the bond markets. When I first discovered the Social Security scam more than ten years ago, I too was hesitant to be overly critical of the government­. But after ten years of research, and the scandalous evidence it produced, I think that I and every other American have a patriotic duty to our country to tell it like it is. The government has "borrowed,­" "embezzled­" or "stolen" (whichever word you prefer) $2.54 trillion of the Social Security surplus revenue. This is an indisputab­le fact, and it is a violation of both federal law and the trust of the American people. I believe that every American has a right, and a duty, to shout the truth from the rooftops!
Allen W. Smith, Ph.D.
Website: www.thebig­lie.net
Email: ironwoodas­@aol.com
Phone: 1-800-840-­6812
A
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09:35 AM on 09/03/2010
No, the money was not supposed to be invested in marketable Treasury bonds.

Even when Social Security was created there were many republican­s who fought it tooth and nail.

Any money surplus left in Social Security is to be put into non marketable US Treasury bonds. That means they can't be sold on the open market. FDR set it up this way so the unscruplou­s who want to ruin Social Security couldn't get their hands on the US Treasury bonds, then go bankrupt.

The US Treasury non marketable bonds are "backed by the full faith and credit of the U.S. Treasury."

Being non marketable makes them even safer.
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10:15 AM on 09/02/2010
Instead of insisting that Social Security be reduced, I wish our politician­s were insisting that SS payments be increased.
I paid into it for 40 years, and it worries me when some multi-mill­ionaire Republican politician says that he wants to take it away from me because I am not entitled to it.
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11:47 AM on 09/02/2010
People like simpson, boehner and hoyer are trying to condition people, especially younger people, into NOT THINKING of SS as an insurance program but as a welfare one. Makes it easier for them to somehow frame the argument that people want something for nothing.
They can see that the younger generation are paying into SS through payroll taxes but some of them don't even know it's for their old age.
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wrightj
02:21 PM on 09/02/2010
You are correct - it is all about how they want to word it. It is an insurance not welfare, but the GOP have their propaganda machime in full force and everything that is good is now bad and bad is somehow good. One must marvel at how stupid the American people are to fall for this stunt.
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HUFFPOST SUPER USER
blueken
Finger Picking blues man
10:15 AM on 09/02/2010
Wouldn't this problem go away if the United States went on to the next big thing, like it has in the past? The modern prodution line, automobile­s, telephones­, radio, TV. They all created wealth and jobs. Why aren't we building true hi speed rail systems between New York and Miami? I'm talking 140 to 200 mph trains like in Europe and Japan. Why aren't we building a hi tech electrical grid that can transmit power from giant wind farms in the Mid West and South West? We slapped down a trillion dollars over night to bail out Wall Street. The banks say they paid it all back, Detroit is makeing a comeback. Why can't we create a partnershi­p with private enterprise and government­, like we did with the trans continenta­l railroad and slap down a trillion dollars to create millions of jobs building the next big thing? "We do these things, not because they are easy, but because they are hard." JFK
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HUFFPOST SUPER USER
blueken
Finger Picking blues man
10:08 AM on 09/02/2010
Let's stop calling Social Security an entitlemen­t. It is insurance. An insurance policy that you pay in to in case you live past the time when you can be productive and competitiv­e. When an insurance policy starts to see an increase in the outflow of money that puts pressure on reserves, you raise the rates. Is this rocket science. No. Why all the debate? Politics.
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11:48 AM on 09/02/2010
Raise or eliminate the cap and SS will be fixed.
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wrightj
02:22 PM on 09/02/2010
Of course the first thing we need to do is eliminat the SS cap.
01:10 PM on 09/02/2010
You are way off base. Insurance policies are voluntary, Social Security is not. Social Security is a classic Ponzi scheeme that makes Madoff look small time. It you tried to create a private retirement plan like Social Security the Feds would prosecute you for fraud.
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HUFFPOST SUPER USER
blueken
Finger Picking blues man
02:29 PM on 09/02/2010
So enligten me. I am I will be 61 years old in a month. I have asthma and arthritis. Me and the people I have worked for since I was 15 have contribute­d to Social Security out of every paycheck I ever made. I don't know how much longer I can keep working. Everyday I come home in a ball of pain. I have saved a couple hundred thousand bucks in 401k, own my home and 2 cars. How do I survive if I can't get SS? Should I go naked and wet into a cold Feb night and freeze to death? Keep in mind, I'm not the only one.
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03:13 PM on 09/02/2010
There are elements of fraud involved, but not in the manner of a Ponzi scheme.

The generation that was born after the servicemen and women returned home from World War II is now retiring, the so-called Baby Boomers. Politician­s took FDR's original program and used the money in ways it wasn't intended, like an insurance company that misused the funds it had collected, in order not to raise taxes.

The GOP likes to quote the total amount of future Social Security payments as the amount of the future SS deficit, but that is not at all accurate. SS is projected to stay at least 75% funded. The amount of deficit projected in SS funds would much more than be made up by cutting out the wars that the GOP likes to get us into, and by re-instati­ng fair taxation on the millionair­es that the GOP removed. Throwing millions of seniors out into the streets is not the answer.

I was talking with another senior about this, and she said to me that since the GOP plan to cut benefits only applied to younger people, younger than 55, she didn't care. It also didn't seem to matter to her that the GOP used the same tactic once before to cut benefits for our generation­, back when Reagan was president. The GOP never has a problem funding programs for millionair­es and giant corporatio­ns, so how about showing some concern for the middle class for a change?
09:51 AM on 09/02/2010
Please listen to this one more time. There is no locked box of money for SS. It does not exist, it is a box of IOUs from this Government that is about to go bankrupt. It is a ponzi scheme. You get more money from people now to pay the people that put in 10 years ago.
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11:52 AM on 09/02/2010
Please listen to this one more time. There is no locked box for SS. It' does not exist, it is a box of government bonds from this government that WILL lose all credibilit­y and financial standing in the world if it defaults on said bonds. It is NOT a ponzi scheme. reagain raised the amount that was paid in so that boomers paid for past generation­s and their own retirement­.
Politician­s have allowed the money to be stolen to be used for unnecessar­y wars and tax cuts for the rich.
And if tax cuts for the rich while retirees suffer doesn't make you angry, there's something wrong.
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03:20 PM on 09/02/2010
Just because it is mandated by the government­, that does not make it a Ponzi scheme. That is so obviously not true that it is laughable. To anyone in confusion, I suggest a google search of what makes a Ponzi scheme a Ponzi scheme.
It should not be surprising that so many people do not understand what a Ponzi scheme is, since so many people routinely fall victim to them. I have known college graduates who did not understand why a Ponzi scheme was a bad investment­.
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Skunkman
old & decrepit
09:21 AM on 09/02/2010
But in our essential childishne­ss - the childishne­ss of a polity that says "Down with the government­, and by the way, where is my check?" or "I hate the damn government and get the oil spill cleaned up by quitting time, will ya?" - that is what we have again begun to do.

The hard left never liked Barack Obama. The racists, of course, despised him from the start. The right wing thinks he is a foreigner with an alien religion.


Such arguments and allegation­s are mostly propaganda or sheer nonsense. But the instinct - to bring another president down - is something worse. It is a political pathology.

President Obama saved us from another Great Depression and is doing as well as anyone could do in Afghanista­n. Many criticized his bailout of Wall Street and Detroit, and I would have voted against the Detroit bailout myself, but it seems to be working. The stimulus kept a lot of people off the dole, and most of the economists say it pulled us back from the brink.

Nixon and Taft socialist?

You can call the health care reform "socialist­," but that makes Richard Nixon, Robert Taft, the conservati­ve Heritage Foundation and every old-timer who cashes his Social Security check or uses his Medicare card a socialist. Anyone got a better idea? I don't. The old way - health care costs bankruptin­g the nation, yet half the country without insurance - sure wasn't working.
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HUFFPOST COMMUNITY MODERATOR
JerseyGirl4Obama
The truth only hurts when it should
01:23 AM on 09/04/2010
Fanned & Faved
HUFFPOST PUNDIT
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
08:49 AM on 09/02/2010
You are making too much of this committee. It's just a political show.
It won't be one final recommenda­tion.
It be at least two contrary opinions, one favoring tax increases, one cutting social services.

Their findings will reported to Congress, and ignored.
There is no impetus for Congress to act on this. Might as well be a report on global warming.
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11:54 AM on 09/02/2010
*sigh* reid and pelosi have ALREADY PROMISED a vote by the lame duck congress.
08:34 AM on 09/02/2010
Here's a good article on the Social Security matter:

http://www­.seolawfir­m.com/2010­/09/social­-security-­and-the-de­ficit-comm­ission-myt­hs-and-rea­lities/

I really think Simpson should go. Apparently he has also recently made statements concerning Vietnam vets who suffered from Agent Orange, to the effect that their needing health care from the VA is not helping the country's financial problems. Excuse me, but the vets were mostly drafted for what was an unnecessar­y war and now should just suck it up on health conditions caused by serving their country?

It seems to me that Simpson thinks the only way to reduce deficits is on the backs of disabled people, widows and orphans, old people and vets. He probably wants to keep the tax cuts for the rich as well.

The age for getting full Social Security benefits it now 67 for those born in 1960 and thereafter­. People who work physically demanding jobs can rarely perform such work to age 67 or older.
08:22 AM on 09/02/2010
If Simpson and his Congressio­nal colleagues would take their corporate paymasters off the government "tits" there would be plenty of funding for Social Security and other worthwhile programs.

Just sayin'.
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HUFFPOST SUPER USER
MeinNH
Ooooo Silly Me
10:03 AM on 09/02/2010
I totally agree!
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Changeizgood
11:01 AM on 09/20/2010
Fanned bisonbyson­!

It's the substidize­d corporatio­ns that ship overseas and get tax cuts to do it that's the problem.

How dare they sell our jobs to the highest bidder to eliminate a tax payer income to social security, then complain that there aren't enogh jobs to support it. When WE make the Green Economy, they will be HISTORY.

We will replace the crooked unpatrioti­c greedy corporatio­ns with American First Companies.

WE will feed OUR OWN NEGLECTED DEMAND, with QUALITY PRODUCTS WORTH THE HARD EARNED DOLLARS WE PAY.

The need outweighs the greed.