Stealth Social Security benefits cuts are potentially part of the debt ceiling deal currently being negotiated by President Obama and the Congressional Republican leadership, per Politico:
Already on the table are more than $1 trillion in discretionary 10-year spending cuts and hundreds of billions more in changes affecting farm subsidies, college aid and retirement benefits for federal workers. Additional savings from health care programs like Medicare and Medicaid are in the offing, as well as a potential $300 billion change in the government’s inflation calculator affecting Social Security benefits and some revenues.
Changing the inflation calculation for Social Security benefits from CPI to chained CPI is a benefit cut by stealth. Using the low inflation number would result in slightly smaller Social Security benefits every year. While the cuts would take place in small yearly increments, the cumulative effect would be that over a seniors lifetime they would get tens of thousands less from Social Security (PDF ).
Congress is in full-blown austerity mode right now and any deal that comes out of these negotiations is likely going to be bad news for regular people. That is why I suspect any deal will be reached at the last minute, so Congress will “need” to quickly pass the bill with effectively no public debate or time for scrutiny.





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Dicks.
Motherfuckers.
This should be tweeted every 15 minutes till it goes viral. These motherfuckers have no shame.
Not dicks.
Not motherfuckers.
Democrats.
Is that the F/U inflation number that doesn’t count food and fuel?
Thieving bastards ?
Not satisfied with rape by inflation through the years, now for the kill so the 2.4 trillion spent on wanker wars doesn’t have to be paid back.
Bait and switch on our insurance program.
How any old person could vote for a Republican is beyond me.
Them damned Cinderella midnights.
Pore ole Congre$$, bless its sole, shoe enough do regret that the little people is too-small-to-matter.
Utterwise, tits very likely that Congress would find their own suck diminishing considerably, and, considering all that Congre$$ has got on its plate, the milk of human kindness and consideration shore do look like champaign on the outside lookin’ in.
What may be said?
Let’s look in the DICKtionary, shall we?
What applicable words might begin to suffice?
Are the American people going to take this lying down?
Or standing up in the bread lines?
Oh, there is no bread?
Well, let them eat … what more can “they” take?
What is that clicking which I hear?
Will Madame G. be visiting, do you suppose?
Thank you, Jon, for keeping us informed regarding the wheelie-dealing of our betters.
DW
According to the Bureau of Labor Statistics the difference between the CPI-U and the C-CPI-U would be around 0.2 percent a year.
… which is sorta like slowly turning up the heat on a potful of frogs.
Not totally OT: Interesting article about Greece as a kleptocracy. The top 10 or 20%, who skim off the top and avoid taxes, will get through the austerity without breaking a sweat.
(Unless there’s a revolution.)
In the US, of course, we’re talking about the top 1 or 2% cruising through the hard times.
The cumulative effect on our children will be even greater. That’s just the economics. As with ending abortion through a thousand hurdles rather than a court judgment reversing Roe v. Wade, this would also meet the Right’s goal of ending the use of government as an avenue for improving the lives of its citizens. It is removing a cornerstone one chip at a time. All the same, when it’s gone or sufficiently weakened, the walls and then the building fails.
or a Democrat…..
bad news for regular people
Nothing new here just more of 0 and congress getting even with Main Street for being middle class/poor.
The *current* inflation numbers are bullsh*t. Real inflation would be running higher when calculated the old way, before the Reagan and Clinton tweaks to make it appear to be lower.
(That is, unless you think you really can buy a brand new computer somewhere for $85).
So the cutting on SS benefits really began decades earlier. This is just piling more on. We should instead not only repeal the payroll tax cut, not only remove the cap on SS taxes, but should also make said taxes apply to ALL income (hello bankster capital gains!!). That way would could make SS solvent and also *increase* benefits by 50 % or so and plus keep it in line with what inflation is really running.
-stewartm
FYI on abortion – http://www.huffingtonpost.com/2011/06/30/orrin-hatch-abortion_n_887866.html
Orrin Hatch added anti abortion rules onto the US Korea Free Trade Act so maybe it won’t pass….
Well, it hurts the longest-lived beneficiaries the most, and isn’t that the plan all along?
What a bunch of assclowns. Tom Geoghehan is right: double the monthly benefit, lower the retirement age to 55. Do it right now, with tax receipts from the rich at their new higher rate of 55%.
Good article and a reminder that “kleptocracy” comes from the Greek “to rule by theft”. Crooks, liars and thieves are all these so called “elites” are. No smarter than anybody else. Only more willing to screw people who have faith in them. It’s also called sociopathic behavior. Time for nice folks to get rid of these lords of assholedom.
This is a bipartisan deal. Don’t be fooled by what they say, watch what they do.
all we need are 40 senators willing to filibuster cuts to social security
On “To the Point” right now, they are talking about Greece. “They are angry at the political system moreso than this particular government. That’s important for us too. It’s not this particular bunch of crooks in Congress and the White House, it’s the whole system that allows it to happen.
Chained CPI-U
well at least it is not chained CPI-W
Damn – I hoped it was just a retirement age increase that reflected decrease in mortality – something logical. This is just mean – making the benefit more inadequate as defined benefit pension plans in the private sector from employers is dying.
Jane and the others that jumped on AARP appear to have been correct – this looks like the likely deal that was shown the AARP and to which they agreed.
Our only hope is that the GOP over-reach gives Dems a backbone – but I do not have high hopes.
Obama is such a good leader.
the inflation tweaks are Greenspan – Clinton and Reagan had nothing to do with it.
but your point is valid – 2 years of zero CPI increases in SS, despite the increase in costs over the period, prove that the CPI is a joke as applied to SS.
I hope this graph wasn’t intended to confuse.
Using “constant 2011 dollars” makes it look like benefits will literally decrease under chained CPI-U, when in fact all three formulas will result in cost of living benefit increases of varing amounts.
Amen. From Digby:
FWIW, I would go much further than Digby: It’s all on Obama.
I don’t understand why Democrats aren’t screaming that this is a backdoor tax increase!
What is the difference between taking a $1500 check and surtaxing it 10% ($150) or cutting the check to $1350 with no tax on it. It’s the same thing!
If they can’t cut the oil companies’ tax breaks, the corporate jet tax breaks, and the horse breeder tax breaks, why are the seniors so ripe for plucking?
Bet that it passes with the anti-abortion rules – and Obama has a “signing statement”! that screw the base in a few more ways.
This seems to be the formula: The objective is capitalist expansion. But where is there room for expansion in our current financed-based economy that outsources manufacturing and has used up so many of the obvious areas for expansion, like the housing market? The past is the one place you can’t go because there is nothing there (although we could consider a non-renewable resource like oil using up the past—and as a finite resource, its days are numbered). The future has been mortgaged via credit cards and national debt. So, the nest egg is one of the only things left. But you can’t consume the nest egg without an urgent crisis, an impending threat, a boogeyman to rationalize its consumption. The debt ceiling is that boogeyman (“We have to tap into the nest egg or we’ll loose the house!”). Many of us, not just politicians, pretend the boogeyman is real because our system (i.e. us) demands expansion. Thus, we all get to pretend we are making a sound decision and mitigating risk, while in effect we are just delaying the consequences of an unsustainable system.
???
It would be nice if the article would explain what exactly c-cpi versus the other cpi alternatives are, and why one might be a more or less rational way to calculate benefit increases. Just because one results in a greater or lesser benefit over time does not make it a better choice, unless your only goal is to have more or less of the benefit over time.
Digby never criticizes Oilbomber. She bans people for Oily O bashing.
The chained cpi or c-cpi calculates the same as cpi except it takes into account that when inflation happens and prices go up, some people will make different choices rather than spend more on the higher priced item.
For example, if beef prices go up, but chicken doesn’t, the cpi considers that inflation, but the c-cpi takes into account that some people will stop buying beef as much and switch to chicken (or cat food :-)).
If a bag man in the Obama Adm. serves Wall Street don’t blame
that on Progressives.
If you run to the Tea Party because of it the bag man will be happy to
see it.
The rich don’t pay more taxes than the poor. They pay more overall cause
they make humongously more. They pay less by percentage.
That the Greeks in the street are wanton is b.s. They pay high V.A.T. for
most things.
Adam Smith, in the Wealth of Nations (laissez faire) advocated checking corporate power because together they overwhelm the common purpose (otherwise of course he advocated their efficient assignment of resources and incentivization.)
He further there advocated that the state provide a social safety net precisely because corporations are ill positioned to do that in the best interest of the common society.
The direct result was Kaiser Wilhelm’s Social Security System, the world’s first.
Munchkins: beware puppeteers and their puppets.
Absent ObamaCare, if you present any health risk factor and are not assured of uninterrupted coverage in a group, that in itself no assurance as they can get singled out, then it’s only a matter of time till you are presented with a choice:
“go ‘naked’” or suffer a “premium death spiral.” You will be unable to move to opportunity in another state because that will be cause for
re-rating.
On the other hand, something in the right direction, some credit due:
http://goo.gl/BtLue
But we still need to overcome:
Is now you see it now you don’t health insurance (acquire a
health risk factor and get a choice of going naked or a premium
death spiral) fraud, class action firms?
When you can’t move from one state to another because the states regulate insurance cos separately and you have to get re-rated due to having a risk factor, which will happen to all of you because you won’t be babies forever, is that interference with interstate commerce?
What about the health insurance cartel’s immunity from the anti-trust laws?
Medicare D: Fed G can’t entertain competitive bids on drugs
Grants to large biotechs: royalties ever collected? even nominally?
https://sites.google.com/site/evernewecon
About time. This has been a huge wealth redistribution effort. The sooner we ween people off of SS the better.
In re: “That is why I suspect any deal will be reached at the last minute, so Congress will “need” to quickly pass the bill with effectively no public debate or time for scrutiny.”
“Doubt is the space between reality and the application of an idea. It ought to be given over to the weighing of experience, intuition, creativity, ethics, common sense, reason, and, of course, knowledge, in balanced consideration of what is to be done. The longer this stage lasts the more we take advantage of our intelligence.
Perhaps this is why elites move so quickly to limit doubt and consideration. Those who gain power almost automatically seek to leap from reality to methodology. This is as true of contemporary rational societies as it was of those dominated by religion or monarchies. Deliberation is mocked as weakness. Consideration is rushed through, if possible eliminated. The effect is to reduce the intelligence of the citizenry to received wisdom, unconscious or secretive procedures and mechanistic actions.” –John Ralston Saul “The Doubter’s Companion”
Every day that goes by it gets a bit worse for now and for our futures.
Thanks to FDL/Jon Walker et al for clueing us all in to the evil . . . we’d never know these things were it not for you folks, no one ELSE covers this crap like you folks do.
And now, I think I’m gonna *barf* a little at the bad news up above.
It’s sickening what’s being done to we the people by our own erected offals . . .
I guess there’s oil and gas speculation. But aren’t they already doing that? So, yeah, they need our SS and Medicare money for their Wall Street casino.
And then when that’s done–then what?
Reminds me of Langston Hughes
Ballad of Roosevelt
http://historymatters.gmu.edu/d/5096/
“. . . the wheeling and dealing of our betters.” Indeed.
“The Coming of the Purple Better One”:
http://niqnaq.wordpress.com/2008/02/23/wm-burroughs-the-coming-of-the-purple-better-one/
Then the fun begins. Then the paradigm shifts. ???
Imagine what this country will look like in 10 years. 30% unemployment. Tent cities for miles around. Oilbummer prancing around to each speaking engagment, white haired and smokey-breathed, singing the praises of his presidential expertise and acumen, while raking in 100K per BS session.
Man, what a world.
None of the current or proposed COLAs take into account the increasing cost of health care for the elderly:
http://articles.nydailynews.com/2011-06-22/news/29707015_1_social-security-shortchanges-seniors-senior-households
The chained cola proposed just accelerates the shrinking of the benefit over time like a negative compound interest rate.
My boss and I contributed $328,000 over 40 years in FICA Taxes. With interest this should amount to at least $1 million in savings. Instead, I get $24,000 a year until I die, and then nothing to my children.
So, the plan is to cut tha some more.
Seniors can buy guns at local stores. Isn’t the Democrat and GOP corporate slug team worried? They should be.
I’m glad the FDL wonks here can parse this stuff–because I am clueless. You guys rock.
A blank wall, a blind fold and a cigarette.
Perhaps we should see how serious the conservatives are about reducing entitlements.
1) Elimination of all federal pensions for elected or appointed officials, let them put money away via IRAs like the rest of us.
2) Elimination of government supplied insurances for elected or appointed officials, let them purchase them on the open market.
3) Couple the age at which any government employee can collect a pension to the same age as the ability to collect Social Security. Yes, that means both civil servants and retired military. The exception would be those with disabilities, and the standards to be applied would be the definitions for Social Security disability.
4) Elimation of TRICARE, or privatize it with appropriate rate structure, since it would then be open market.
5) Require memmbers of Congress to only receive what the founding fathers did as representatives of the people, a salary and per diem. All other benefits, including staff and office space, could come out of their own state’s funding (or the moneyed interests who already have them bought and paid for).
Now in this day of technology, we could go to a virtual Congress, meeting and voting via telecommuting and the internet. They could stay at home in their home states, closer to their constituents, and be more accountable to them. Of course, the states would have to ante up for the offices and staff and benefits. Now this would create jobs as now it would require many lobbyists to fan out over the United States as they go to see our representatives, rather than only one or two walking the halls of the Congressional and Senate office buildings.
OK, I know it’s a fantasy. It would take something like the French Revolution for this to happen.
Since SS is not part of the regular budget, what’s the deal? Is this just a ploy to not pay back the trust fund someday, because, hey! the money won’t be needed?
Conservatives? Oilbummer wants to cut everything too, but he’s too chicken shit to admit it, the right winger.
Health care costs for the elderly are factored into the cpi-u, but not exclusively, the rates are then averaged out accross the population.
Here’s one conservative that’s in favor of what you are proposing.
The “people” have to make that French Revolution happen. The Democrats are not going to be urging the populace to build the barricades, they profit from a corrupt system just as surely as the Republicans.
CPI-W has not been valid for decades. It ignores many of the labor classes that make up today’s population. That’s why other measures have been developed over time. Chained CPI is very valid and not something that was invented yesterday. It not only addresses substitution of purchases due to inflation (i.e. the poorly-stated beef vs. chicken example above) but also other changes in purchasing ehavior that people make over time in response to such things as the availability of new technologies, changes in demographic make-up, etc.
Just because you don’t like the result, don’t accuse things of being a stealth robbery.
It’s OK to imagine something other than a declensionist narrative. Creative destruction? Anarcho syndicalism? The freedom that comes when Right Answers dissolve before your eyes? :)
Have you read Marshall Berman’s “All that Is Solid Melts into Air”?
I don’t disagree with you there. The Dems who control stuff, like Baucus, and Nelson, and Obama, are Reaganites. Obama acts very much like Bush 41.
But if it wasn’t being put on the table by the conservatives, I doubt that the Republican/Democratic wing would be doing so.
No one can call a cauliflower a cauliflower in Washington these days, no one.
No kidding. I left the party recently as, after 40 years as a voting democrat, I couldn’t take their duplicity any more than that of the GOP.
You, like I, are just little voices that won’t be heard by the decision makers. It’s all about the money, and we aren’t making them any.
It shouldn’t be about right or left, so-called conservatives or so-called progresses, but about the American people. But we’re forgotten, and any mention of us is merely rhetoric to make us placid until the next election, following willy-nilly into the voting booths to vote for those who are already bought and paid for.
Any politician of any stripe that cuts Social Security and Medicare will be voted out of office in the General Election in 2011.
Children,parents, and grandparents on SS or Medicare will vote in mass against those water carriers that would do such a despicable act.
We all now that the radical extremist so-called republicans are heartless Fascists and will do anything to please their puppet masters–corporate America.
The Democrats have to stand and be counted or they will be labeled gutless water carriers.
This article claims that a ‘chained cola’ allows Republicans to say that they have cut SS benefits and allows Democrats to say that they have increased taxes:
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201106211841dowjonesdjonline000414&title=change-to-inflation-measurement-on-table-as-part-of-budget-talksaides
What a bunch of thoughtless, insensitive, opportunistic jerks!
Your actual numbers, if you maxed out each and every year from 1970 until now, are $258,000 (rounded) for Social Security and $60,000 for medicare.
The issue always is, could you actually have gotten the interest you think you could have. Or, if you invested in the market, who is fickle and treacherous, what would you have at the point of retirement. I’m pretty smart and I know, dispite all my analysis of the market, that my stock holdings are worth far less than they were two decades ago. IMO most people would be conned by investment groups and end up with next to nothing.
The U.S. electorate has been primed and indoctrinated to accept fascism as the natural order of things. They are ignorant, mis-informed, ill-informed and easily manipulated. Of course it won’t be called “fascism” but something along the lines of globalism, neo-liberalism or the “free market.” If any Republican or Democrats votes for cutting SS or Medicare who is the electorate going to vote for? Another corporate fascist? The system is rotten and corrupt to the core and incapable of self correction or reform.
“Chained CPI is very valid and not something that was invented yesterday. ”
true as to not invented yesterday – it was invented 15 years ago under Greenspan as a way to cover up a decrease in living standard that is a zero CPI via substitution. That plus overstating “quality” improvements that do not really improve the ability to get a job done – as in larger hard drives at a lower cost – has made of CPI calculation a joke to the folks in other nations -
but it does give us a “growing” GDP when the true GDP is dropping.
Hear, hear! They’ll go through with the cuts I have no doubt. They don’t care what the peasants think. They need that money to gamble with and they are going to get it come hell or high water.
The “little voices” may not have money, but they are in possession of something at least as valuable: faith. It is faith in expert opinion, authority, the soundness of the market, the inevitability of economic Truths, never-ending growth, competition as unmitigated good, the fairness of the law, American Exceptionalism–well, the list goes on–that keeps us all participating in the game. If a critical mass of the “little voices” stop believing, the whole granfalloon goes pop (“If you wish to study a granfalloon, just remove the skin of a toy balloon.”).
The priest may demand a tithe to keep him fed and the church running. But without the collective faith of the parishioners, he has got nothing at all to begin with.
Agreed. But how long will it take? Yesterday, I called us the fringe, and we are. Anytime I discuss these ideas with people they think I’m fucking daft. The learning curve is steep. By the time people wake up the capitalist pigs will have drained the trough.
So you apparently DO believe that you can get a brand spanking-new $85 computer, right?
If you had an old computer, and it ran fine, and it breaks, and you have to find a new one it really doesn’t matter if the new one has umpteenth times the CPU and RAM. What matters is what you actually have to *pay* to replace it. That only matters because buying the original make and model isn’t an option anymore.
And the affect of these tweaks has always been downward, even when quality doesn’t go downward. Sometimes the quality of a product gets worse, not better, yet the estimated inflation factor never goes upward to reflect that.
Ever wonder why?
-stewartm
Which is why the conservative arguments of “lookie there at them higher inflation rates of ‘Old Europe’!! Dat’s because of them’s being SOCIALIST!!” fails. Truth is, in European countries inflation is calculated by and large by the old way. Ours would be similar if we hadn’t have tweaked it.
So what was that advantage of Reaganomics again?? At least they have universal health care and higher employment.
-stewartm
OK my hair is on fire and there is at least one thing we must not do.
DO NOT VOTE for a PARTY that CUTS SOCIAL SECURITY BENEFITS.
Stay home, write in, vote 3rd party, but do not affirm this. .
Do NOT vote for them!
How long, I don’t know. Maybe never. But what is the alternative, to adopt the tactics of control-addicts and use force, heavy-handed coercion, and the limiting of options? This is the domain of Neocons and other such ideologues.
One of the important things I’ve learned from teaching is that you can’t teach anybody anything. You can train, coerce or condition people, but you can’t educate them if we presume that real education is internal, spontaneous, subjective and results from an individual’s experience with their environment. You can coach, point things out, share, ask questions, but you can’t impose real education.
This may not be a very satisfying conclusion for the reason you indicate: it takes time. But what else can you do without resorting to control and authority, both of which are enemies of freedom and the honest process of human development?
Where is Abbie Hoffman throwing money on the floor of the stock exchange when you need him?
Besides, if everybody became the “fringe,” how boring would that be? :)
You ‘n me both. I have been saying that Obama & all the CongressRATS are definitely FOR SURE going to CUT Soc Sec & Medicare to just about anyone I know, and truly even to folks in grocery store lines, bank tellers, other service workers, you name it.
Almost to a person – with only very few exceptions – people either IGNORE me (perhaps thinking I am, as you say, “daft”) and/or they “argue” with me about very WRONG I am, and that it will NEVER happen. Period. The end.
Hey: call me crazy, but I would to be utterly wrong about this. But somehow I don’t think I am.
As I said earlier today, US citizens are hoist on their own petards for being effen stupid, lazy or simply not caring or not paying attention. So tired of it, but that’s what I’m experiencing from where I sit.
They know this. So to do their dastardly deed they’re engaged in this political theater about the debt limit. It’ll be; we had to do this or else the sky will fall, the world will end. Remember circa fall 2008 when the banksters threatened everyone unless they got their billions!
We certainly could use more tactics like Abbie Hoffman on the Stock Exchange… except that there ARE folks out there “staging” conceptual stuff like that. But we hardly ever see it, except sometimes on blogs.
Certainly the corp-owned media will do everything in it’s power to CENSORE actions akin to what Hoffman did.
Why do you think people believe that there’s no more anti-war protests? Admittedly, there haven’t been that many just lately, but they happen periodically, sometimes with big turn-out. Do you ever *see* on your tv? Heck no. And so… on it goes…
I agree with your commentary, though.
Exactly. And anyway, NONE of them CARE if they get voted out. So WHAT???
Their corporate masters will give every single CongressRAT and Barry Zero a nice fat cushy highly paid, lucrative job of some type that includes gold-plated benefits for life.
Whyever would anyone in DeeCee be bothered about being voted out? They don’t care. It doesn’t matter. They are assured of a very fat paycheck no matter what.
Just keep voting them out… at all levels, every election. If nothing else, it costs them more money if they have opposition.
Screw the blindfold, I want these bastards to see it coming.
Oh quite agree. Will do whatever possible in that regard.
Exactly right. And not just in DC by the way. I think Scott Walker has the same hookup!
Tomorrow I am in the market for another gun. Sawed off shotgun to be exact.
I do not believe you completely understand the Social Security benefits
There are survivor benefits impossible to get in the market
There is inflation protection impossible to get in the market.
There is disability coverage
There is a lot to the benefit structure that protects you – and your dependents – every year right up to retirement.
Okay. Here is how this Social Security thing works out. Social Security has been running at a surplus for several decades from the 15% (including employers’ portion)FICA taxes which most people pay on 100% of their income, and that surplus which is loaned to the rest of the federal government is not counted as part of the deficit which makes it easier to lower income taxes and argue against raising the same. Now they are saying that we must take action to keep the trust fund full rather than have SSA collect those debts from the IRS. You see this is the thing, the right loves to say that half of Americans don’t pay any income taxes, but they ignore that the income taxes of the rich are artificially low because those low income earners are paying 15% of all of their earnings in taxes, while the rich top out and then stop paying social security taxes. The poor who are paying SS taxes are subsidizing the rich.
It is exactly a ploy to avoid drawing down on the trust fund because that will have to come from the treasury which will raise the debt or force income tax increases.
And let’s not forget–the trust fund was set up during the 1980′s to be heavily in surplus as a result of the ss tax increase under Reagan. The purpose of the trust fund surplus was pre-payment by the baby boomers of their retirement.
As the baby boomers retire, the trust fund was expected to slowly be depleted as it paid out those pre-earned and paid benefits and to return to its pre-1980′s character of having marginal surpluses and marginal deficits from year to year.
So when pols squawk that ss is spending more than it’s taking in (and I believe that point was reached within the past year) that was what the surplus was supposed to do.
It’s not just old people I live around nothing but Republicans in their 30s and 40s so please stop the baby boomers are all teabaggers.
At least FDR came through. I doubt Oblahblah will.
You rock!
Wish I had my trusted M-60 machine gun from the Nam. I could do some clean up in isle 5 with that baby.