Returning
from the sunny climes of Hawaii to the nation’s still frigid
capital, President Obama will, over the next couple of months,
face the greatest challenges of his time in office. Pushing
healthcare reform through – as limited as it turned out
to be – was an historic achievement. However, the question
now before us is: shall the powers-that-be wreck two of
the most important legislative achievements in our country’s
history by undermining Social Security and Medicare. Will
they succeed in using the current economic crisis as a phony
excuse to destroy the retirement security of the present
and future elderly? It really is an open question because
powerful forces are endeavoring to do precisely that.
Expect
the principal target for the moment to be Social Security.
Betting in Washington appears to be that Medicare is relatively
safe for now because the Republicans don’t want to risk
the ire of older voters – including some Tea Party people
– who, before the midterm elections, were conned into believing
the healthcare reform posed a threat to their access to
medical care. Of course, it’s a cynical political conclusion,
but so too is the effort to link the proposal to scale back
or privatize Social Security to the goal of reducing the
federal budget deficit.
Social
Security is not to any significant extent a contributing
factor in the burgeoning deficit. Defenders of the system,
including some leading economists, have been so successful
in debunking the myth that, in a fit of intellectual honesty,
some conservatives have begun to advance other specious
arguments for “entitlement reform.”
Take,
for instance, conservative Washington Post columnist Michael
Gerson. He put it rather frankly last week. The reason
for going after Social Security is, he says, to convince
the “global credit markets” that the Administration is serious
about deficit reduction and to persuade Obama that it would
be a wise political gambit. Gerson, formerly of the right
wing Heritage Foundation, was a speechwriter and senior
policy advisor for President George W. Bush and was part
of the White House special group that plotted the Iraq war.
While maintaining that Social Security is a "relatively
small contributor to future deficits," he nonetheless
argues that "reforming it would be a large symbol and
logical place to begin."
Asserting
that Gerson and other conservatives seek to “trap” the President
on Social Security, liberal commentator Robert Borosage,
of the Campaign for America’s Future, wrote last week,
“Gerson argues that Obama faces a major strategic decision
in his coming State of the Union address, which must take
the ‘first cut at the reelection message he carries to reelection
or defeat.’ Gerson helpfully offers a course virtually guaranteed
to increase the chances of the latter.”
Borosage
notes that Gerson’s argument is that to gain agreement with
Republicans, Obama “will have to offer up more, choosing
between tax reform and entitlement reform,” adding that,
“The former is dismissed as too hard. (And is dangerous
for Republicans since it is hard to do tax reform without
insisting that the wealthy no longer pay an effective tax
rate that is lower than their secretaries).” He goes on:
Reforming
Social Security by raising the retirement age and cutting
benefits - however gaudily packaged to make the system
more "progressive"- is unpopular not just with
liberals, but with independents, conservatives and Tea
Partiers. Embracing it won't "polish" the president's
image among independents; it will prove to Americans across
the political spectrum that the president is out of touch.
Americans, mostly those approaching retirement, just lost
over $11 trillion in assets from savings and home values.
Most don't have a pension, and those that do fear that
they are at risk. Savings were inadequate before the financial
collapse. Every survey shows that Americans do not want
politicians to mess with Social Security, the one secure
leg left to retirement.
“Of
course, this is a Republican conservative offering up this
advice,” wrote Borosage. “Adopt a course that will not address
our pressing problems, do nothing about growth and jobs,
torpedo support among seniors and blue collar workers, alienate
voters across the political spectrum, tear apart the Democratic
Party, and fail to address either short, medium or long
term deficits. Great advice from a former George Bush operative.
Keep this poisoned chalice from thy lips, Mr. President.”
This
situation is partly of Obama’s own making. As part of the
President’s much hyped “bipartisanship” maneuvering last
year, he appointed a special group to make recommendations
on reducing the deficit. The body, known as the National
Commission on Fiscal Responsibility and Reform, was headed
by a Republican, former Sen. Alan Simpson and a Democrat,
former Clinton Administration Chief of Staff Erskine Bowles.
When the body was unable to agree on proposals before its
mandate expired last month, the pair issued their own recommendations,
chief among them being cutbacks in Medicare and Social Security.
Since
that time, advocates of Social Security “reform” have mounted
a multi-million dollar campaign to get the Commission co-chair’s
recommendations enacted. The editors of the Financial Times
immediately endorsed the Simpson-Bowles proposal and have
repeatedly called on the President to “prepare the country
for the necessary changes,” it outlines. As recently as
last Sunday, the New York Times was insisting that “entitlement”
cuts have to be “on the table.”
The
danger now is that Social Security could fall victim to
another Washington backroom deal, which is what some are
openly promoting. On December 20, the Washington Post revealed
that “a new, informal gathering of senators” have been meeting
since the summer to discuss ways to curb the deficit. The
group “includes more than 20 senators, with a roughly even
partisan split.” Reportedly it is lead by Senators Saxby
Chambliss, a Georgia Republican, and Mark Warner, a Virginia
Democrat, who have said they will introduce legislation
encompassing the Deficit Commission co-chairs’ plan.
Congress
recently passed a temporary extension of the federal budget
limit. A showdown could come in March when Republicans are
threatening to shutdown the government if they don’t get
the $100bn in spending cuts they are insisting upon. “It
could add pressure on the Obama administration to come up
with its own deficit reduction plan ahead of the state of
the union address and the 2012 budget proposal, expected
in February,” said the Financial Times.
Thus,
the trap is laid.
“I
do not want to cut benefits or raise the retirement age,”
Obama said back in 2007 when he was a Presidential candidate.
“I believe there are a number of ways we can make Social
Security solvent that do not involve placing these added
burdens on our seniors.”
“Currently,
the Social Security payroll tax applies to only the first
$102,000 a worker makes…If we kept the payroll tax exactly
the same but applied it to all earnings and not just the
first $97,500, we could virtually eliminate the entire Social
Security shortfall,” he wrote in an op-ed piece in the Quad
City Times, a daily in strategic Iowa in September 2007.
It
is important to note here that when Obama made these statements
he was immediately attacked, not just from the right but
also by the campaign of his Primary opponent, Senator Hilary
Clinton. At the same time liberal and labor groups trumpeted
his pledge on Social Security to prospective voters, arguments
that undoubtedly were critical in their ballot box decisions.
Strengthening
Social Security by extending the tax contribution to all
of income has been advocated by senior and labor groups
for months now but the major mass media doesn’t pay any
attention to them.
I
have written before about the “enthusiasm gap” that was
evident in the slumping voter turnout in the midterm election,
especially amongst younger voters. It is not hard to fathom
why. These politicians are playing cynical games with human
lives. Millions of people are dependent upon Social Security
for all or most of what they need to live when their working
lives end. This is particularly true in the African American
and Latino communities. And, a period of widespread economic
distress is hardly the time to talk about undermining retirement
security.
“The
supposed crisis of Social Security is a phony,” wrote American
Prospect Co-editor Robert Kuttner December 16 on the Huffington
Post. “Social Security is financed by payroll taxes. Reduce
unemployment, increase wages, and the crisis disappears.
Even with only modestly better unemployment rates and wage
growth, the modest projected shortfall could be eliminated
by eliminating the cap on income subject to tax.
“A
Democratic president with strong progressive principles
and political nerve would have taken his party into the
mid-term election pledging never to cut Social Security
and daring Republicans to take a similar pledge. Instead,
Obama appointed a deficit commission with a majority of
appointees wanting to cut the Democrats' signature program
-- thus blurring party differences on the Democrats' biggest
political winner.
“Obama
also signaled Democrats in Congress that he might well include
Social Security cuts as part of a grand deficit-reduction
deal. If that occurs, the civil war in the Democratic Party
will only deepen.”
The
President will be well advised to listen to that advice
rather than swallowing a drop of Gerson’s political hemlock.
BlackCommentator.com Editorial
Board member Carl Bloice is a writer in San
Francisco, a member of the National Coordinating Committee of the Committees of Correspondence
for Democracy and Socialism and formerly worked
for a healthcare union. Click here to
contact Mr. Bloice.
|