There’s a very important an article in the Neiman Watchdog this morning (Harvard’s journalism review, Deputy Editor Dan Froomkin). It’s written by Nancy Altman and Eric Kingson, entitled “Has Obama created a Social Security ‘death panel’?
Headlines like that are normally the reserve of DFH bloggers, so it’s notable that the academic world is talking about Obama’s Deficit Commission in that way. Even more notable are the article’s authors: Altman and Kingson both served on the Obama Campaign’s Retirement Security Advisory Committee, and then on the Advisory Committee to the Social Security Administration Transition Team.
Altman was on the faculty of Harvard University’s Kennedy School of Government, has taught at the Harvard Law School, and was Alan Greenspan’s assistant when he chaired the commission that developed the 1983 Social Security amendments. She also served as a legislative assistant on Social Security issues to John Danforth, whose Danforth-Kerrey Commission was the predecessor to Obama’s commission. Kingson was also a staffer on the Greenspan Commission, and was Social Security Advisor to the Kerrey-Danfoth Commission.
Alex Lawson has been livestreaming the closed door of the Catfood Commission on FDL. They have refused to conduct their deliberations in public, but the committee is stacked with enough votes to cut benefits. It takes 14 out of 18 votes to pass any recommendation on the committee, and there appear to be a sufficient number of votes to do so based on the past positions of individual members. So Altman and Kingson raise important questions, but to my mind, none more important than these:
Q. Why is the Commission apparently working so closely with billionaire Peter G. Peterson, who served in the Nixon administration and who has a clear ideological agenda?
Q. Mr. Peterson has been on a decades-long crusade against Social Security. The day after the first meeting of the commission, which focused heavily on the need to cut Social Security, the co-chairs and two other members of the commission participated in a Peterson event that reinforced the same message. A Peterson-funded foundation is supplying commission staff. And Peterson’s foundation is funding America Speaks to develop a series of high-profile town halls across the country to host “a national discussion to find common ground on tough choices about our federal budget.” (For more background about Mr. Peterson, see William Greider in the Nation on Looting Social Security — Part 2.)
Note the buried lede: Pete Peterson is supplying commission staff.
One important lesson I learned from the health care fight: the health care industry had been laying the groundwork for this for years, and that should have been an early focus. It wasn’t until the Gruber incident that I learned how the medical industrial complex had been working through foundations like Kaiser for over a decade to basically buy the academic underpinnings of their plan (and probably longer if you count the GOP/Heritage response to HillaryCare as its roots). They ran a nice back-and-forth between Congress, the White House, the CBO and Gruber to make it look he was supplying independent confirmation of the health care bill, when in fact it was all part of the same carefully orchestrated plan. It bought them a lot of credibility that they otherwise would not have had in the academic world.
Pete Peterson has been serving the same function on Social Security that Kaiser and others did on health care. From the Concord Commission to the Peterson Foundation, cutting Social Security benefits and diverting as much money as possible into Wall Street’s coffers has been Peterson’s holy grail. He himself was on the Danforth-Kerrey Commission, and was set to be the key note speaker at Obama’s first fiscal responsibility summit shortly after the inauguration. After we reported it, the White House canceled him then denied he had been scheduled to speak, but Robert Kuttner subsequently confirmed it in the Washington Post.
The current budget deficit will be used to justify cuts to Social Security benefits, just as the surplus was used to justify cuts during the Clinton era. As Steven Gillon said the other day when he was here talking about his book on the secret Clinton-Gingrich deal negotiated by Bowles to cut Social Security in the 90s, Bowles is running the same play.
Peterson plays a huge role in the world that shapes the thinking that drives the commission. Bill Clinton simply gushed about him at Peterson’s own recent fiscal summit. As long as Peterson is allowed to hide in the shadows and pull the strings, the choices that the Commission will make will come from a very small menu. Defense cuts will not be a factor. They won’t be talking about the trillion dollars they could save over the next decade simply by expanding Medicare to cover businesses. They’re only going to ask the questions that drive them to the same answer: cut Social Security.
It’s going to be important to tell the tale of Peterson’s inexorable march and diffuse the notion that the Commission is simply responding to temporal economic factors. This is class war, pure and simple. The rich against the poor. Hedge fund billionaires and defense contractors against senior citizens struggling to get by. Altman and Kingson have done us all a tremendous favor by opening up the discourse and asking important questions that need to be answered before the Commission makes its report on December. That’s just in time to jam it through a lame duck Congress before the Christmas break, something both John Conyers and John Boehner have warned about — a repeat of what Bowles planned to do in the 90s.




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Is it legal for a private individual, or one of his shady mirror-image foundations, to pay the salaries of staff to a public, presidential blue ribbon panel? And does BP know about this new paradigm? It would certainly be helpful to have them staff the president’s blue ribbon panel on the Deepwater Horizon catastrophe.
OJ set a wonderful precedent for this, with his continuing hunt for Nicole Brown’s real killer.
Change Plutocrats can believe in!
Having Peterson and friends stack the commission and provide the staff is like having the five largest oil companies and BP be the “commission” Obama selects to investigate the oil disaster.
What possible justification could anyone on the left still have for supporting Obama?
or KBR/Halliburton investigating the electrocution of soldiers in their showers in the Green Zone in Iraq.
Nothing to see here, move along…
Excellent point! And thank you to Jane for keeping us in the light when all the world is in shadow.
I guess my initial thought is – social security came about because of/in response to the great depression, right? To help get over the Great Depression we had to run a very high deficit which was resolved within a few years. So if we established social security during a time of a high deficit why do we need to backtrack on it now, when we are in a strikingly similar situation to when it was established? (am I making sense here?)
None
Talk about kicking people when they are down. What will happen to the millions of hungry people? Will we have zombie crowds of elderly roaming the streets?
The things that are just fine with the O admin:
1. killing of the Gulf of Mexico
2. killing of an entire economy
3. torture and killing of potentially innocent brown people at not so secret prisons
4. killing of 45,000 Americans a year through lack of health care. (why are we waiting until 2014 to institute the pretend reform again?)
5. stripping people of the last bit of dignity they have by sucking away their social security
The whole thing about SS is that the greedheads want that money in their pockets. Talk about cutting SS in order to reduce the deficit is horseshit. So are all the other “reasons” we need to “look” at SS.
The whole idea that Social Security is in trouble is a lie. It is actually has a big surplus. Yes, it is forecasted to someday have less income than expenses, but that’s when it dips into its savings account which has been building up for decades. Of course that savings is in U.S. Bonds, which helped the government pay bills over the years without having to ask the rich to pay their fair share. That will have to be paid back from the general budget to the Social Security budget and that might mean the rich have to actually pay their fair share. That’s what’s in trouble.
As for the long term solvency of Social Security. That’s only a concern because working people have to pay 13% of their income while the rich only pay 13% of a minimal fraction of their income if any at all, but we all get the benefit. If we simply funded Social Security with a FLAT tax, the wet dream of the rich re: income tax, it would be solvent for ever.
There is no problem with Social Security. The vampires just want access to it too for their Wall Street gambling.
If Obama was half the socialist Fox News makes him out to be, I’d be a lot happier with him.
Thank you, I know that SS is fine (I read the Irwin Kellner articles among others) but the spin is all about the deficit – we need to cut SS because of the deficit. But that is so easily refuted when you look at the time when SS came into being, I believe we were sitting on a huge deficit.
Thank you, Jane. Thank you for highlighting this.
I’m sure that the presentation of the idea for reduction of Social Security benefits will be packaged in such a way as to suggest that by reducing Social Security everyone will benefit. They will tell us that yes, they are reducing Social Security, but they are increasing other benefits which will make up for that reduction. Benefits that actually are better than what Social Security offers.
President Obama is a conservative person. He’s not liberal. He’s a capitalist and he is allied with the military and the ultra wealthy. Not the wealthy…the ultra wealthy.
All Americans…poor, middle class and wealthy are having their live savings, property and insurance and social security benefits stolen from them by a very tiny minority of uber rich.
This is part of the journey that we are experiencing toward full fledged fascism. We can see the government is dissolving before our very eyes. 70% of the Pentagon according to Jeremy Scahill is now privatized. There is very little government left. And that’s a common definition of fascism.
And I’m not expert on this stuff, but how exactly does Social Security impact the deficit? Isn’t it a completely separate account from the rest of government spending?
I agree – Not much reason to support Obama
“Pete Peterson is supplying commission staff” – and not one actuary in the group – I guess he does not want truth speakers to get in his way of cutting Social Security. Concord Coalition is listed as having as staff Robert Bixby
Executive Director
Harry Zeeve
National Field Director
Chris Colligan
Finance Director
Joshua Gordon
Policy Director
Steve Winn
Communications Director
Diane Lim Rogers
Chief Economist
Cliff Isenberg
Chief Budget Counsel
Stefan Byrd-Krueger
Youth Outreach Coordinator
Matt Fortino
Accounting Manager
Imran Zaman
Information Technology Director
Emily Goldman
Staff Assistant
National Office Address:
Field Staff
Phil Smith
National Political Director/Southern Regional Director
Jeff Thiebert
National Grassroots Director/Northeast Regional Director
Christine Hovde
Southwest Regional Director
Sara Imhof
Midwest Regional Director
Janet Ryan
Western Regional Director
And as to military spending – toys for boys weapons and everybody a General – this does not seem to be on his agenda to cut.
Thank you, Jane. Great work as always.
The bonds have to be repaid from general revenue, which is basically all personal and corporate income tax which means they are tax obligations on the wealthy. So Peterson and his ilk could save millions in taxes if these are never repaid.
if we and our employers are paying social securities taxes, can someone please explain what affect on the federal budget does social security have?
The Conservadems have wanted to take a hatchet to social security for years. This is truly a bipartisan effort. I’m reading Ron Suskind’s fantastic book on the cautionary tale of Paul O’Neil’s experience as Treasury secretary in the Bush Administration. The Republicans were planning to privatize social security in order to create a way for private businesses to make a fortune selling securities to American workers in a privatized system.
Obama is not our friend. This is part of the “change” he has promised — this “reform” will cause a resurgence in the numbers of the elderly poor. It’s called balancing the federal budget on the backs of the middle and working classes. Absolutely shameful.
Tune in next week, when Obama does precisely that in his Oil Spill Fiasco Commission.
Any suggestions for a quick addition to my Obama bumper sticker that will let people know about this?
One more history item on Peterson – He is a hedge fund manager. You know, those people who get to pay lower taxes than us ordinary workers? Guess who actively lobbied to make sure that loophole did not get closed (back in 2007 or so)? Yup – Peter Peterson.
If the public is made aware who this guy really is and how he made his money, the people won’t listen to him because everyone in middle America right now hates investment bankers and hedge fund managers and that top 1%. The problem is getting the history of Peter Peterson out there to the public.
To the extent you can not hide the operating deficit with SS payroll tax surplus the reported “unified deficit” will increase.
It ignores the fact that SS is fairly well funded and focuses on the tax increase on the rich that will be needed to pay back the loan taken from the Social Security Trust Fund to finance the Bush tax cuts for the rich. They do not want the rich to worry about the cost of redeeming the bonds in the Trust Fund that begins in 2017 – they prefer to cut benefits and pretends gov bonds are worthless in SS but a valuable asset to everyone else.
However the later retirement age in 2040 and a minor change in payout CPI increases to reflect actual cost changes for seniors are necessary – just as they were in 99 when we last looked at SS.
I forgot the simple and needed end to the SS tax wage cap and the inclusion – as in the health reform – of investment income in the SS “payroll tax”.
Thanks for this, Jane.
In other news, the Obama gang are fixin’ to privatize all public housing:
http://www.commondreams.org/view/2010/05/21-1
Obama is the conservatives go to guy. A real Trojan Horse, it not an ass.
Especially keeping in mind that Social Security was FDR’s answer to death panels for granny. One should alway ask themselves what will happen under the status quo and what will be the result of change. IMO, if they reduce benefits, someone has to pick up the slack for those that are unable to help themselves or supplement their own income somehow that they haven’t done yet. Someone will have to pay for granny’s drugs, or granny’s kitty food that she eats for dinner because her benefits were cut. Apparently someone has forgotten that this is a matter of life or death for some.
WHAT MAKES YOU THINK HE WON’T??!! ROTFLMAO!!!
I think Obama’s conservative wet dream agenda has to be exposed before he goes in front of the camera’s to mesmerize (bullshit) the public on what a great thing this is.
Expect a whitewash with Obama’s Gulf Spill commission.
They haven’t forgotten. They just don’t care.
Dean Baker on Pete Peterson – interesting article from last month
http://www.ourfuture.org/progressive-opinion/2010041728/being-rude-deficit-hawks
Cenk Uygur:
Progressives Get Clean Sweep on Election Night.
That’s right. Progressives in full regalia doing the same old – same old. Electing centrists and emasculating themselves ever more.
OMG! Why haven’t I seen this before?
Add in the potential, already in place in their view, to kill anyone, anywhere in the world, just by claiming that they are a terrorist, or are giving aid to terrorists, without warrants or any kind of legal proceeding (and most especially not a public trial).
How about Americas First Black Republican President: BHO!
A big black X across it?
They could raise the ceiling to, say $250,000 a year of income, too.
I found this quote from Candidate Obama, who yet again appears to be a completely different person than President Obama:
“We’re going to have to capture some revenue in order to stabilize the Social Security system. You can’t get something for nothing. And if we care about Social Security, which I do, and if we are firm in our commitment to make sure that it’s going to be there for the next generation, and not just for our generation, then we have an obligation to figure out how to stabilize the system. I think we should be honest in presenting our ideas in terms of how we’re going to do that and not just say that we’re going to form a commission and try to solve the problem some other way.”
http://www.ontheissues.org/2008/Barack_Obama_Social_Security.htm
And not to mention that the SCOTUS just voted 7-2 to indefinitely detain sex offenders even after they have served their prison terms. Next will be the ‘terrorists’, drunk drivers, bank robbers, hell let’s just lock up anyone indefinitely because there is the distinct possibility they will re-offend. The last time I heard the stat, recidivism was an average 54% for all crimes. Sounds like a clear and present threat to me!
“Talk about cutting SS in order to reduce the deficit is horseshit”
If Obama does try and default on Treasury IOUs, there should be hell to pay. If Obama was to try and undermine Treasury IOUs that would seem like a reason to downgrade the US’s credit rating.
Blue Texan’s regularly scheduled post is ready: Rand Paul: Criticizing BP is “Un-American”
In addition to the excellent responses from papau
Social Security Fix: Veto the VAT, Raise Taxes on the Rich
Candidate Obama was assassinated by Cheney’s secret henchmen the first night he spent in the WH. We can see clearly now we have a body double of him in office.
Where’s Monica Lewinsky now that the nation really needs her?
You’re forgetting that workers are far more likely to die before collecting, or within a few years of retirement. Not to mention having far smaller checks when they DO collect. And their retirement age keeps getting raised, but there has been no negative impact on those in a position to retire early.
Wealth, Income, and Power
by G. William Domhoff
September 2005 (updated April 2010)
Pete Peterson wants the top 1% to have more than the 35% of U.S. net worth that they already control. That means 80% of Americans have to surrender some of the 15% they currently subsist on.
- a whole lotta crickets on this from the Hangin’ Tough Boyz so far in my googling
Barack Obama, Trojan President
The top 1% in this country have 13 1/2 times the wealth of the bottom 50% of the population.
Unnecessary and expensive wars, a bloated military, tax cuts for the rich and corporations, even to the point where they pay no tax at all, bailouts for banks, the Fed’s ZIRP, this is all about looting.
So Pete Peterson is behind this. How can we be surprised? Look at how Obama kowtows to the banks, how Robert Rubin still visits the White House, how Obama made his deals with insurance companies, BigPharma, and the medical industry, how he has delayed and deferred to BP’s, not the public’s, benefit, how Obama continues and expands the MIC’s wars.
This is no accident. Remember that Obama signed the Executive Order for the Catfood Commission on the very day his candidate Coakley was losing Ted Kennedy’s seat to Republican Scott Brown. We talk about the lessons of that defeat. It is clear that Obama learned nothing from it. It didn’t deter him for a second. Indeed it may have made him even more determined to gut Social Security while he still had time.
And Medicare? The biggest cost savings in the Obama healthcare plan came form $400 billion over 10 years to come out of this program. I still think it was the most underreported story of the whole healthcare debate.
As long as our Legacy Media and captured commentariat continues to paint this within Versailles as Obama’s Nixon-goes-to-China opportunity to cross the ideologues within his own party, he will be drawn to it like a moth to a flame.
We simply must change the frame around this, and quickly. Needs rolling out in September.
Here are some my initial thoughts:
1. It’s unlikely my age-groups’ benefits will be affected. I’m in the within-ten-years group whose personal retirement benefits have been so devastated by what the MOTUs did to our economy.
2. This is really about the late-Boomers and Gen-Xers’ benefits, as well as everyone after them. These people, who came of political awareness during Reagan, have steeped in conservative government-is-incompetent messages since childhood. We need something to move Alex Keaton off his glibertarianism.
3. Can’t rollout a new product in August, so how does our framing and opposition get built now for a post-Labor Day splash?
4. Just as Newtie should never be mentioned without his prefix “disgraced House Speaker” or Sister Sarah without her moniker “resigned half-Governor” we have to give Pete Peterson the new first name “Hedge fund pirate.”
5. Similarly the blue ribbon panel needs consistent ID: “Hedge fund pirate Pete Peterson’s CatFood Commission” works for me.
6. The wonks who put this memo out need spotlighting, as well as protection from the OFA messaging machine which will try to minimize their campaign and transition accomplishments.
Finally, it might be smart to smash directly at the “Nixon-goes-to-China” meme that is developing quickly in Legacy Media around this. Whenever we see this sprout, wouldn’t it be great to respond, every time:
Might give Obama pause, you think?
Wow, that’s pretty damning.
Let’s have Cheney head the commission and complete the royal flush.
Sounds great. Will you write it up on Seminal?
So, our centrist democrats are now really just all moderate republicans when you get down to it. It’s almost like turning the republican party into an ideological fringe only event was designed in order to coopt the democratic party.
More damn secret deliberations from this lame ass administration. They’re beginning to make Bush and Cheney look like Mr. Transparency and Mr. Sunshine.
This story should be the lead story on every evening news program this evening and tomorrow’s headline on every major paper to expose this lying bastard for the fraud he truly is.
The corporate media won’t touch this.
Obama to middle class: “We’re going to need that red stapler.”
Looking at the celebratory financial “reform” thread on the Orange Nightmare, it was telling that the Obamabots message to the realists basically boiled down to, “Shut up blabbing that this isn’t real reform, we can fool the American public into thinking it is. You’re helping the GOP.”
They basically care about nothing except empty electoral “wins” over the GOP. No different than rooting for your favorite football or baseball team.
The entire Dem establishment has convinced themselves that they should address it because if they don’t, the Republicans will and they’ll be worse.
No, they really do think that, I’m serious.
You have no foundation of fact. Social security will pay out more than it takes in this year and will ramp up from there. We can afford the status quo for maybe ten years but after that it gets out of control.
Don’t attack the messenger. Most people deny things they don’t like. It is something that takes a while to get over. The question is what are we going to do about this problem.
Maybe some of you should watch the short movie put out be the Peter Peterson group: I.O.U.S.A the 30 minute version. Its free and on Youtube. You can then write an article on its fallacies and we can all learn.
So far on these forums I have only heard how this commission is out to cut benefits. Nobody has said why. There has to be a logical reason that OBAMA would risk votes by talking bout cutting benefits. This is a politicians nightmare. Much like what Rand Paul is doing to me now LOL. Oops, the racist must go on to troll something else now.
Let the Republicans try!
I like no ceiling – or even a progressive tax rate that is lower on the first 100,000.
A simple no ceiling – tax every dime earned – is the conservative “flat tax” – hard to see why they would object! :-)
I’m not worried, nothing ever comes from these commissions, it’s just a way for politicians to make people think they are doing something when they aren’t. The last one was I think the 9/11 commission? ANd we all know what came out of that – a big fat goose egg.
BTW thanks. I will add this to my Obama scandals list as item 153.
Theft panel. “You remember those SS funds we took out of the system? Well just try and get it back suckers!”
Is that like his promise to get us out of Iraq?
Is that like his promise on the public option?
…..
Barry has run to the right of Bush on guns Law limiting release of gun-trace data blasted by chief, D.A. and abortion (Stupak).
Which explains why the Rs haven’t succeeded nor even half tried to get this done. Like the Health Insurance boondoggle that the Rs couldn’t pull off on their own, they just need to get the Ds to step up and kill the safety net for them.
“The Republicans were planning to privatize social security in order to create a way for private businesses to make a fortune selling securities to American workers in a privatized system.”
If run through Wall Street, government investing in assets would indeed put commission and management fee income in Wall Streeter’s hands. But the Gov could run a simple index fund, with taxes topping off for any weighting that gets out of wack (which could off course add to the funds if it went the right way). It was the individual accounts – and the fees – that they wanted. But SS has individual accounts that it tracks at near no cost and could easily do the job. Other countries invest a portion of their social service trust fund assets in non-gov bond assets – and it works out very well at low cost (which is why Clintion proposed putting 20% of the SS Trust Fund into non-gov bond assets). A simple allocation via the current Social Security account system is zero cost as it just funds the benefits – and if an add on (not replacing SS but in addition to SS) account saving system is proposed, it can bypass Wall Street fees by expanding the duties of the SSA. But Bush wanted to design the individual accounts to maximize the theft by Wall Street – and did not want to use the plan that was developed in the Clinton years.
Seriously, the list is only at 153? I must be spending too much time looking at the details.
You mean like risking votes to sell out to health insurance companies, BigPharma, and the medical industry? Or do you mean like running interference for BP? Or could it be like bailing out the banksters? Yeah, Obama would never do anything like unless he was a Blue Dog status quo corporatist, … oh wait! That’s what he is.
He’s a neocon Republican who lied his way into office campaigning as a progressive Democrat.
See Leiberman, Joe, 1 ea.
Actually a lot of what I add now is in the way of updates. I will add the item on public housing but have also 3 updates to add as well on finreg, Blair, and the oil spill. OTOH for some reason I can’t bring myself to write on either the Massey mining disaster and Citizens United. Maybe this weekend but I won’t do either of them the justice they deserve.
You need to worry. Nothing came of the 9-ll commission because they didn’t want anything to come of it. This time, they want to finish dismantling the last vestiges of the New Deal. And if the shit salesman-in-chief and Rahm want it done, it will be done.
Why doesn’t the Democratic establishment see the writing on the wall? If Democrats gut Social Security even halfway, voters will run them out of town, giving control to the GOP.
Who will finish the job.
I mean, what is HARD about seeing this clear outcome?
oooh, that is a VERY good frame — a flat tax for social security.
So where do you people see the progressive movement going? I doubt you will ever see “progressive” in the presidency just as much as I will most likely not see a classic liberal. Do we just go on watching the country being destroyed irrespective our our differing ideologies?
I see a lot of whining about problems here but rarely any solutions. The great thing about math is that “honest” numbers don’t lie. The math says that Social security will become a larger and larger part of the budget until medicare, medicade and social security coupled with the interest payments take up the entire budget by like 2040. That is not far off and that is not funding any other federal program.
I have heard that by repealing the Bush tax cuts, pulling out of Iraq and Afghanistan and ending all ‘pork barrel spending” only solves 10% of the problem. So what do we do? I think that is why this commission exists.
I have often said that we should find the group of politicians who decided that it would be OK to spend the excess Social Security payments and have a public trial. Who in their right mind thought that this would work out OK.
No, sorry. Retrospective commissions, when the political establishment is finally convinced to look-forward-not-backward (Warren, Iran/Contra, all the way through 9/11) are almost always whitewashes, it is true. But prospective blue-ribbon commissions almost always come up with solutions so hated by the American people, for very good reason, that politicans wouldn’t dare propose them and need a commission of Very Serious People to hide behind in order to do their masters’ bidding.
There’s a big difference, imho. ymmv, as always.
Yeah, FDL’s 14-month-long, ultimately successful Audit-the-Fed transpartisan alliance was just whining. /s
Before you criticize the track record of this blog as “whining about problems here” you’d do well to find out what’s actually been done: from running Joe Lieberman out of the Democratic party all the way to holding some small part of the Cheney cabal accountable for outing a national security asset in a time of war….
Oh, I needn’t go on, probably. You’ve made up your mind that we’re just bloggers covered in Cheeto dust with no actual accomplishment. No facts or history will change that, I’m sure.
Peddle your untruthiness somewhere else.
And then the electorate will vote Democrats back in. Democrats and Republicans are just two sides of the same coin. Both do the bidding of corporations and wouldn’t know the public good if it smacked them up aside their head with a 2 by 4.
Yes, that’s what Mr Peterson keeps saying. And if the public actually buys into his nonsense they will once again find themselves on the recieving end of this.
Thankfully some of us have a better plan.
Jane, thanks for the heads up. It’s good to see that the establishment catfood crusade is losing some of it’s legs. Granted, Mr Peterson will probably just buy more legs….
Guessing that unanimous vote to audit the fed 10 days ago doesn’t have the same luster today. This congress is beyond redemption, they will never vote against the oligarchy. They will never be ‘voted out’. This country only continues to go downhill, call that vote a bump in the downward spiral, in the end, no value.
Congress doesn’t suck, it’s provably evil, in other news, the earth revolves around the sun and those tarballs in Key Largo didn’t come from BP, they get tarballs all the time down there.
Do you have a link to back up what you are saying? I’ve seen projections that Social Security could bankrupt by 2040 (and the assumptions made to reach this conclusion are iffy IMO) but not that SS would take up the entire Federal Budget. That’s not making sense to me.
I would suggest you check this pie chart – defense spending/military spending takes up more than half the budget – not less than 10%.
Take the caps off FICA. You really need to run the numbers or at least understand them. Pork barrel spending is a tiny, tiny part of the budget. Misallocations and malinvestment are much higher portions. Iraq and Afghanistan are about $140 billion a year. So not insignificant. But the defense budget could be halved and that would save another $300-$400 billion a year. Remember a lot defense spending also goes through the Departments of Energy and Homeland Security. The Bush tax cuts took $1.5-$2 trillion out of the budget. How about restoring that. Indeed many large corporations pay no federal tax. How about instituting a minimum corporate tax based on total worldwide earnings? Then there is Medicare. If Medicare was folded into a single payer universal healthcare system the overall cost of healthcare in this country could be cut in half and healthcare actually improved — as has been shown to be the case in most industrialized countries.
Wages in this country have been flat for 30 years and there has been a resultant redistribution of wealth to the top 1%. Reverse that and you will have higher wages to fund Social Security and fewer people who will need Medicaid.
You see if you only play within the frames that people give you that have no interest but in preserving their own privilege a lot of these problems look intractable. But the moment you step back and take a fresh independent look at the whole system you find that yes, the money and resources are there. The question is do we want them to be used for the benefit of the many or the few?
I guess I just see a lot of hatred and one liners that don’t contribute much to the conversation. Its not like its out of the ordinary as some other sites are much worse.
I just like to see dialogue that is honest to the argument. I have had good exchanges here that give me hope. I am not perfect either. I say stupid shit.
I think that the only way that things will get accomplished is when the progressives and libertarians meet politically. This site among others is leading the way towards that. This latest Rand Paul bashing is not helping. Do you rally thing that another democrat vote will change things. Getting Libertarians in the GOP will change minds. That should be the progressive priority. That is where we will all benefit as at the very least the social freedoms will appear and that will change society.
I hope you have privatizing NASA on your list.
http://blogs.discovermagazine.com/80beats/2010/02/01/obamas-nasa-budget-so-long-moon-missions-hello-private-spaceflight/
This is a signature one term president. I hope that the next president will be more restrained but the possibilities look ugly. NAFTA, union weakness, outsourcing jobs, subsidizing private enterprise, “cat food commission” for the elderly, cuts in all state and federal aid for the disadvantaged, attacking the environment and many more issi=ues that Hugh has listed is a toxic political soup that the Murdoch media has taken off of the news.
When do we get daylight?
Now they are after our platform the net. Bigbrother is a greedy and power maddened oligarchy and the giant octopus just keeps on growing.
None whatsoever. The man is a craven opportunist who has no principles. A primary challenge is definitely in order. Whether it can happen is another story.
I have a short item on it at 138 which I added in late January.
I wish there was more discussion on the feasibility of bringing diverse groups together (progressives and libertarians), find common ground and try to stake a new way politically. If enough people were in a ‘new’ group so to speak, it could start a wave. There’s millions of people not in the process (and I’m quickly becoming one) because it seems pretty frick’n hopeless. We don’t have real political choices, we have evil all the time and evil most the time. There is no answer for all the corruption, 2 parties that really 1, all current third parties are already bought out or too incompetent to grow.
Flippant one liners is a specialty of mine. It’s cause while we document the sinking of the S.S. USA, I’m frustrated because there are no answers…only iceburgs.
The Republicans did try under W, but it looks like Obama is going to deliver W’s plan – and then it will be called liberal/progressive. It will be a windfall for corporate interests.
Just read an article by William Greider of The Nation over at Michael Moore’s site. His feeling based on quotes from Podesta and from Volcker is that targeting Social Security is a “smokescreen designed to reassure foreign creditors” and our debt holders. They admit it doesn’t actually affect the deficit. We just want those foreign creditors to know that we have no problem cutting social programs so they can be confident the US will do what it deems necessary to handle our deficit. (???) Interesting.
That is not what the numbers show. I address the numbers here.
Raising the cap undermines one of the rationales for Social Security: it is designed to replace a portion of wages. The portion is constant, and tops off at the level of the cap.everyone pays the same amount, and gets the same benefits.
As I pointed out here, the solution is to raise taxes on the rich to make up for the tax cuts they got under Reagan through Bush the second, which were disguised by the Social Security surpluses.
The rationale of Social Security is to provide a degree of security in old age to retirees. If you are rich, then you already have that security. There is nothing unusual about removing the cap on FICA on the input side and means testing on the output side. Tax policy is social engineering. It is and always has been about distribution and redistribution of resources. There is nothing different here.
I agree that a tax increase works short term. When you start going out 10 to 20 years the numbers change so, so much. This is directly related to the post WWII generation retiring. This was a large population increase and the workers available now paying into the system are much lower than it used to be.
In the Peter Peterson Video I.O.U.S.A. the former director of the GAO states that only a doubling of income tax rates would pay for the coming costs of SS, medicaid and medicare.
I don’t think that that would be sustainable and would reduce our standard of living dramatically. SS does not even pay out that much. It is a very complicated and emotionally troubling situation. As a society we have moved away from taking care of our loved ones and started to place the fiscal responsibility upon the government. Social engineers will spend their career’s studying this trend.
I don’t think that SS was ever designed to become a retirement plan. Don’t kill the messenger. Its just my opinion but I think I carry merit other than just saying raise taxes and not looking at the unintended consequences. This is not meant to belittle your position. It is fitting that we can no longer look at Europe as the solution. They are undergoing this same problem on whole.
How much money do you think the private oil companies paid for staff on Cheney’s Energy Task Force?
Why isn’t anyone raising the point that Social Security comes out of its own taxes? Why isn’t there more trumpeting of the fact that Social Security is an off-budget item yet it’s being plundered in order to pay for illegal wars and other executive branch adventures?
The government of the US supposedly guarantees its debt. The money “borrowed” from the Social Security fund ever since Reagan has been replaced with treasury paper ensuring that it will be paid back. That paper is allegedly guaranteed by the goodwill of the US govt. Now this bogus president, this lying, posing, traitorous Democrat has appointed a commission to destroy our retirement programs while allowing bankers and oil companies to feed off tax money.
And all this stuff about Rand Paul, as reprehensible as his ideas about the Civil Rights Act and the place of minorities in this country are, is nothing but a smoke-screen. There will be weeping and gnashing of teeth and Paul will dominate the news cycle while Obama’s commission to destroy Social Security makes its recommendations and destroys another program designed to save us from corporate greed and peonage to capitalist thugs posing as businessmen.
Hope someone sees this down here in EPU-ville but last week Kevin Drum had an excellent short concise explanation of the current Social Security situation, one that more righties should see. This might be the key graf –
Jane–will you comment on something off topic? Realistically, can you see a primary challenger for Obama? Is there any whispering going on in the inner circles that you’re exposed to? What are your thoughts on the possibility of a primary challenger? Is it foolish to even HOPE? I already know all the old talking points about WHY a presidential candidate of the same party should NOT be primaried, but is there a chance this time?
What a frightening prospect for those (most) Americans who will need Social Security when they are older or disabled. (Medicare is already being gutted.) We pay into this system all of our working lives. What sort of person is this President?? Separately, Obama has just quietly introduced legislation to privatize public housing (HUD). This is not a civilized country.
the current budget deficit is what provides a floor to the recession. cutting the deficit is madness. increasing taxes any time in the near future, unless offset by greater fed spending in other areas, is also madness.
deficit errorists and deficit terrorists. they both kill.
recommend randy wray’s recent blog post:
PAUL SAMUELSON ON DEFICIT MYTHS
TIME TO DROP THAT OLD-TIME RELIGION
i really think both masaccio and hugh are wrong on this. jane, i beg you to consider alternative povs beyond the orthodoxy on both taxes and fed deficit spending. i’m waiting for the last bit of video from the fiscal sustainability teach in and counter conference held on the same day as the peterson “let them eat cat food!” conference. as soon as i can, the video will be released, and i hope lots of people will consider watching it.
hcan too. which was a straight up con from before it grew out of the herndon alliance.
The Republican have half tried.
What do you think IRAs and 401(k)s are, and who do you think pushed them hardest?
Thank you! I had not seen this article yet.
jumperno64 @ 96
You’re missing something in your analysis:
people used to have pensions from their employers (partly because they didn’t change jobs as often).
When companies started cutting back on benefits (because the government was paying via SS and Medicare) people became more dependent on SS and Medicare. (Try this one: when my parents signed up for retirement medical insurance via my father’s employer, it was going to pay 80 percent of the bill. Then it became 80 percent of what Medicare didn’t pay. Finally it was ‘oh, Medicare paid 80 percent, so we don’t owe you anything’. That’s not unusual, AFAICT. Also, the pension from that company had no COLA provision, so it was actually shrinking over time.)
This really is a cat-food commission: they’re fine with the elderly dying en masse by cold and starvation, because it doesn’t affect them directly. They have funds, they have paid-for housing, they have jobs that aren’t going to disappear.
Rand Paul is certainly leading the way in the changing-minds department.
His own.
You are listening to liars lie when you watch IOUSA. Pete Peterson’s paid liars.
Click through massacio’s links sometimes to see the true math, not the oligarchs’ lies.
Democratic President Obama has put Social Security on the chopping block. He will steal Grandma’s pension and give the money to billionaire mother fuckers like Peterson. I’m glad I’m not a Democrat. I would be so ashamed.
It’s true that Soc Sec was never meant to provide for citizen’s entire “pension” once they stop working, but as another post comments, our parents’ generation mostly worked at one job, and even in the private sector, most were guaranteed a pension for life. My father – now approaching 90 – still gets a pension from his company, for whom he worked for over 35 years – but still he’s been retired for almost 30 years now. Hence, he’s been retired from that company for almost as long as he worked for them.
Part of the issue is the vastly increased life-span of the WWII generation due to better life-style choices, nutrition and medical advances. This was mostly not anticipated. So my dad’s pension has been the same amount since the day he retired – clearly not worth nearly as much now as it was then. Still: better than nothing.
My dad had more foresight than some and had saved a lot and proceeded to manage his own investments, which grew over time…. until recently where they’ve yo-yoed up and down with the current casino Wall St ponzi scheme that we have. He still has a somewhat reasonable portfolio, though, but thank goodness also for his Soc Sec. All three have been NEEDED for all of these years, and he and our family would have had a much harder time if all 3 weren’t available – esp given as he’s got Alzheimer’s and now needs constant care.
It’s probably reasonable to have people work longer because of the increased life span… IF they can. And there’s nothing wrong with working longer, except in today’s world, it can mean that younger people have to wait longer to either get a job or move up the ladder.
But to suggest that we simply get rid of Soc Sec, or syphon it off for the Wall St crooks, is really a bad idea. People need that security layer of pension provided by Soc Sec. And yes, now it’s being ripped off by our govt to pay for unneeded wars and the like. THAT’s what has to stop (if at all possible).
And yes, citizens should plan to have more than Soc Sec to sustain them into old age. I quite agree. But if you’ve been coerced into saving in a 401 (k) plan for a pension, then you know how you’ve also been ripped off by that “plan.” Many 401 (k) plans really don’t give you a lot of choices for investment vehicles, and most are direct investments in Wall St rip offs.
Something needs to be done, but kowtowing to Pete Peterson ain’t the answer. One suggestion is to abolish, or at least significantly raise, the Soc Sec payroll tax deduction. Right now, it’s incredibly regressive and stops being deducted around $110k of earned income. Why? If it was raised to at least $500k – and if Soc Sec was not pilfered by our govt – we wouldn’t have the problems with Soc Sec that are currently being discussed.
I know a great way to lower the deficit without having to stea…uhh, I mean “borrow”…any more from social security: Find the $2.3 trillion (yes, that’s trillion with a t) “misplaced” by the Pentagon back in the day. Admitted to…hmm, interesting…admitted to by Donald Rumsfeld himself on September 10, 2001. Yep, it was a BIG story when the truth finally came out.
http://www.youtube.com/watch?v=hQZmbxhPl2A&feature=related
And of course, there was lots of follow up, right? I mean, trillions gone missing…well, the public pressure and outrage had to be there, didn’t it? Investigations, commissions, prosecutions, recovery of the $$$$$$$$$$$$$$$…
Huh? What did you say?
Oh yeah. Right. It was announced September 10, 2001. The day before most of the accounting department at the Pentagon went up in smoke:
“One Army office in the Pentagon lost 34 of its 65 employees in the attack,” reported The Pittsburgh Post-Gazette on Dec. 20, 2001. “Most of those killed in the office, called Resource Services Washington, were civilian accountants, bookkeepers and budget analysts. They were at their desks when American Airlines Flight 77 struck.”
Enough said.
P.S. Oops, wrong – not quite enough:
Seems like the Pentagon went ahead and lost track of yet another trillion (yes, that’s with a t) in 2004. Along with 56 airplanes, 32 tanks, and 36 Javelin command missle launch units. (Sure hope they looked under the rug for these.)
http://articles.sfgate.com/2003-05-18/news/17491492_1_pentagon-gao-financial-accounting
Which I guess brings the total to $3.3 trillion.
That’s 25% of the national debt right there.
Indeed. It is awful. However, I believe that you find most here no longer consider themselves as “Democrats” because this is not what we voted for. We may have been fooled, but we are seeking changes to the status quo. I certainly don’t agree with this, and it’s not what I voted to have happen.
Live and learn.
I wondered if I was nuts for wondering about this, so thanks for validating what I’ve thought for a while now. However, I wonder if that reasoning isn’t a cover for actually delivering what their financial industry contributors want so badly–access to SS funds for investment. Think of all those fees they can charge to further impoverish the aged.
What about the opinion I have read (was it here?) that SS will die if means testing is instituted because it will no longer be universal and will then really be an “entitlement”.
The Supreme Court ruled long ago that not one penny any of us paid into SS over our working years has to be returned to us upon retirement. SS is a tax that all workers must pay with no guarantee that any portion of it will ever be returned to us. Congress can change anything (age of retirement, amount of payment, eligibility, amount of tax due, etc.) at any time, and the IOU’s are nothing but paper that can be voided with an act of Congress and signature of the President.
Pete Peterson is part of the Wallstreet crowd. he has teamed up with Robert Rubin to loot social security. There’s no shortage of commentary about this fact on FDL. Here’s some related reading:
Fiscal Sustainability and the American Future
Economist James Galbraith on Panicky Deficit Hawks: There’s No Coherent Story There
Yup, we are being robbed blind. I remember Cynthia McKinney asking Rumsfeld about the 2.3 Trillion. Then the story sorta just disappeared.
This really is the heart of the matter. This is where all of our ideology’s differ. We do have a fiat system. It does give us great flexibility to have an elastic fiat currency. Does this make it right? Is this “good” for our nation. Well it depends on where the money goes. I think that the great majority of people have been fooled into supporting this system. Who inevitably gets the money? Not the people that is for sure. It goes to the corporate state and our standard of living has been decreasing ever since we went off the gold standard in 1971. Yeah its great we can print money but it does not mean its a good thing. Their are consequences. I think this Galbraith guy is nuts. He says we do not have to worry about deficits. I think Cheney said the same thing to Bush’s first treasury secretary before he got fired. If this was the case we could just print up all the money needed and drop it from helicopters which Bernacke has proposed he would do.
You always make me think Capt. I like you. Please look at the other side of the argument. One book that changed my life was Henry Hazlitt’s: Economics in One Lesson. He was an Austrian. The book was written in 1945 and was written for the Layman who was interested in economics. I dont put blind faith in any argument but I do ask you read this book and please get back to me. Tell me what you think about it.
I leave you with a great observation from Murray Rothbard:
Yeah, for the last thirty years working people like me paid high FICA taxes to fund the SS trust fund which bought government bonds which hid the total deficits the country was running. But the hidden deficits allowed R’s to give tax cuts to the 1% as it was “their” money. And now that it’s soon to be time for that wealthy 1% to pay back these bonds, now they are claiming we have to cut SS! No you greedy f*cks, it wasn’t “your” money, it was ours. You stole our SS money w/your d*mn*d tax cuts and we want it back. Again, the Drum article I linked to is the clearest one I’ve seen.
Just so. That’s what they’re fixing to do, or at least try, and it is a class war, or at least one of an emerging plutocracy against the rest of us. And because it is, it is very important to recognize, fight against, and defeat one of the primary ideological tools that the elites use against the rest of us. That tool is the belief that fiscal responsibility and fiscal sustainability require balancing the budget, reducing the national debt, or failing these things, maintaining a certain arbitrary, pre-specified, public debt-to-GDP ratio. That is what Peterson and his allies are preaching, and that’s what underlies their arguments about why SS and Medicare must be cut.
One can argue effectively against Peterson, as you’ve done, by attacking the process involved in the Commission’s deliberations and Peterson’s involvement in and influence over the process and by making the point that the whole thing is very undemocratic. You can also point out that even from the point of view of the concerns of the deficit hawks, there is no real problem with SS. You can also point out that far from cutting Medicare, it would be better for the American economy if Medicare coverage were expanded. All these things are true, and arguments like these and others may defeat Peterson and his allies this time and save SS and Medicare.
However, if we want to win the “class war” we need to do more than just save SS and Medicare. We also have to undermine and defeat the whole neo-liberal notion that deficits, the national debt, and debt-to-GDP ratios somehow measure fiscal responsibility or sustainability, and also that they are important as causes of our poor economic condition. These ideas are false. They are pure myth. They are based on a confusion between the Federal Government and other entities including states, Eurozone nations, and households that aren’t sovereign in their own currencies. And they are a distraction from the broader question of what the Government should be doing to enable and facilitate achieving public purposes, and they are also a distraction from evaluating all legislation from the viewpoint of its impact on achieving these purposes.
selise has referred you to Randy Wray’s very good piece on deficits. Captjjyossarian has added two other references. Other important statements are here, here, and here.
These advance the contrasting point of view on fiscal sustainability mentioned by selise. The point of view that was expressed in the Fiscal Sustainability Teach-In Counter-Conference, that is expressed in the audios and videos offered here, and that will be expressed in the videos and transcripts from the Teach-In which will be released soon. That point of view is important because it strips away all the fiscally-based excuses of the Administration and the elite for not meeting existing American problems with legislative programs that will be effective, but will cost money. It relates not only to the non-existent solvency problems of Medicare and SS, it also relates to the programs we need, but will not legislate, relating to full employment, adopting enhanced Medicare for All, fixing our broken educational system and our infrastructure, protecting our environment, acting against global warming, and developing alternative energy foundations for our economy.
I ask that you consider and eventually use this point of view in continuing your critique of “the cat food commission,” the Administration, and their allies. If you do that it won’t detract from the power of your current critique, but it will broaden the scope of the issues and make clear “the cat food commission” is not just about what might happen to SS and Medicare. It’s also about lost decades, ruined futures, and an America in continuing decline. And beyond America, since much of the world follows our example, both good and bad, it’s also about lost decades, ruined futures and regress for people all over the world who follow the deficit terrorist example the United States may set.
It’s about the Eurozone splitting apart because the people of its member nations lose patience with an austerity imposed on them by an elite who doesn’t think that austerity applies to them. It’s about an Australia whose Labor Government betray its roots in Labor and insists on austerity whatever the impact it may have on employment. It’s about a United Kingdom that in the name of austerity will cut back on the welfare state and expose its middle class and working class citizens to wholly unnecessary hardships. In short, “the Cat Food Commission” is about much more than simply a threat to SS and Medicare. It’s about the continued triumph of an economic ideology that threatens both real democracy and the betterment of the human condition all over the world.
This is horrific.
We are living through some particularly ugly times, when the fundamental flaws in laissez-faire capitalism are being laid bare.
When corporations and banks are predators, it is only a matter of time before they start preying on their own. It was easy for many US-Americans to close their eyes to their rapacious practices when the most heinous results took place outside our borders. But now, our social safety net is being torn apart in the name of profit.
It won’t end well.
Jumper, I think you’ve made a number of unsupported statements. First. is your statement that the corporate state “inevitably” gets the money. You really need to show why this is inevitable. A simple assertion won’t do. Second, the US has always been able to “print money.” This power is written into the Constitution. It doesn’t date from 1971. It dates from 1789, and even the Continental Congress had the power to create money. Third, you assert that “this Galbraith guy is nuts.” He may or may not be, but you’re just name-calling here. Yiu haven’t really either quoted Galbraith here, or given readers any reason to think that he’s nuts. Importantly Galbraith didn’t say we don’t have to worry about deficits in the abstract. He said that we didn’t have to worry about deficits from the viewpoint of Government solvency. And he’s 100% right about that.
Galbraith has never advocated that we can “print” all the money we need. His view is that the Government can spend what it needs to facilitate full employment without worrying solvency or inflation, but he also thinks that spending past that point, can cause inflation and that inflation can and should be combated by taxation to cool aggregate demand.
Finally, if you’re concerned about helicopter operations you shouldn’t miss this piece by Scott Fullwiler. It will give you a whole new perspective on them. It might even make you forget Henry Hazlitt. Or if that doesn’t do it. I suggest Warren Mosler’s book. If you read that three times and think about it it will be the perfect cure for the Austrian virus that’s causing your fever.
Worlds second richest man made an honest statement that he pays less taxes than his own secretary. Income gap widening between 1% and 99% is the root cause for lesser social security intake. Our nation still produces more wealth than ever before even in this recession and income cap is preventing this intake to be in balance.
Remove income caps and drop the intake percentage from current 6.25%. Economy will rebound, we will have more jobs, the social security system will be solvent as far as eye can see and excessive compensation at the top level will become a thing of past.
Panel composition shows that social security is being setup to fail. Answers are already in and only thing remaining which I guess they are discussing is framing of questions.
It would not matter if all the elderly in the 99% of the population suffer and the worlds only super-power will not take care of its weak and infirm. If this happens in my opinion America moral standing in the world will plummet and the dreams of our founding fathers will suffer a minor setback. Reason it will be minor setback because Democratic party will cease to exist once they touch social security. Every American associates Social Security with Democratic Party. I still do not think Democratic party will touch their sacred cow which is linked to its own self preservation. I have been proved wrong regarding moral hazard by the wall street this decade. Lets see if this is the case for Democratic party too.
Good Lord, these guys are just weak. The projected budget deficits sounds scaryonly because Congress outsourced its sovereign credit power to the Federal Reserve which repays (ha!) the favor by requiring the US Treasury to pay interest to bond holders. Funny how the Fed lends money to banks (including Goldman Sachs) for zero interest, who then use the borrowed funds to loan money to the Treasury at 3% interest. As Jon Stewart put, the Government is the worst loan shark in the world.
http://wallstreetblips.dailyradar.com/video/the-daily-show-with-jon-stewart-hoarders-video/
An honest government would cut out the middle man and just borrow from the Fed directly interest free, there’d be no need to ever sell new Treasuries (or roll over old ones that expire). The fatal flaw with that plan, of course, is it’d change the debt service trend line on this chart into one as nonthreatening and stable as Social Security’s trend line.
http://www.pgpf.org/images/blog/7646586/Federal%20Spending%20as%20Percentage%20of%20GDP%20graph.jpg
This is exactly what Simon Johnson said would happen in his Atlantic article at the start of the financial crisis:
http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/7364/
Since then, fiscal austerity plans were imposed on Latvia, Ireland, and now most recently on Greece, which the populace is protesting. In Greece, where the wealthy and landowners refuse to pay taxes, goverment and public employment will be cut and taxes raised on labor to cover the deficit, which monies will go to effectively bail out bankers in Germany.
This is being covered on baselinescenario.com, nakedcapitalism.com, among other financial blogs, where people largely see this as bringing home to developed economies in Europe and the US, the neoliberal economics the banksters have long imposed on developing countries in order to loot them silly, as here for example:
http://www.counterpunch.org/grandin11172006.html
http://en.wikipedia.org/wiki/Neoliberalism
Also relevant:
“Once elected to office the ‘popular leader’ of humble origins begins a series of transactions with the ruling class, trading voting popularity for political recognition and accommodation. This is rationalized by the upwardly mobile petit bourgeois with the rhetoric of ‘realism’, ‘pragmatism’, ‘possibilism’ and the “need to broaden the electoral base” to gain higher office (the presidency). The “double discourse” becomes dominant in this phrase. The upwardly mobile petit bourgeois make discreet visits to the imperial embassies and capitals providing “guarantees” to imperial interests, promises of prompt debt payments, promotion of privatizations and free markets and appointments of neo-liberal ministers.”
http://www.counterpunch.org/petras11132004.html
An odd fact about class war in America: Typically, only the capitalist class and those who serve it are permitted to wage class war. Race based class conflict is permitted because identity politics keeps the lesser sort from organizing across the boundaries of social categories and class. Thus conceived, identity politics can produce debilitating class specific effects, debilitating for those for those who derive their wealth from their labor or who lack wealth by and large.
Today, however, the powerful mean to attack the only ‘legitimate’ form of welfare in America — legitimate because earmarked tax revenue funds the program. Given the nature of the program, its popularity, visibility and great success, it is hard not to conclude that Social Security reform entails a political project that intends to transfer wealth from those who fund and benefit from the program to capital. This project is predation in its elemental form. It also intends to violate the intrinsic property rights of those who contributed into the fund.
This attack on Social Security, if it becomes publicly known for what it is, ought to convince those who prefer reality to illusion that American capitalism is not for them.
One of my favorites:
http://www.movieactors.com/freezeframes-77/DiscreetCharms140.jpeg“
Social Security is NOT welfare.
It sure is.
I think Social Security is much more like savings bond, than it is like welfare. But perhaps we just have a semantic disagreement. How do you define “welfare”?