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AmSpecBlog
The Looming Liberal-Caused Social Security Disaster
Since everyone else on the AmSpecBlog is writing about Social Security, I might as well too.
FDR's proudest accomplishment, the national Ponzi scheme known as Social Security, is significantly closer to collapse than it was last year - and liberal groups have a lot to do with this fact, but more on that in a moment.
The old age entitlement program reported that program costs will exceed tax revenues in 2016, one year sooner than projected in last year's report. The Old-Age and Survivors, and Disability Insurance (OASDI) Trust Funds will be exhausted in 2037, four years sooner than projected last year. "Over the 75-year period, the Trust Funds would require additional revenue equivalent to $5.3 trillion in today's dollars to pay all scheduled benefits," according to the program's board of trustees.
"The worsening of the long-range outlook for the Social Security program is due primarily to the recent economic downturn and faster reductions in mortality than previously assumed," said the trustees.
But the trustees left out an important fact: liberal activism has helped to bring Social Security to the brink.
In 2005 as the defeat of President George W. Bush's campaign to reform Social Security, the so-called third rail of American politics, drew nearer, liberal groups savored their approaching victory. "We're putting the power back into the third rail," gloated Toby Chauduri, a spokesman for the Campaign for America's Future.
Social Security has not been reformed because politicians lack the political will to take action. And why do they lack the will to act? In part because they have been urged not to take action by left-wing groups opposed to putting Social Security on a sound financial footing.
These groups were effective both in keeping Democratic lawmakers in line and in scaring the bejeezus out of Republican lawmakers sympathetic to Social Security reform.
Some of the key liberal groups that have fought Social Security reform tooth and nail are the AFL-CIO, AARP, AFSCME, Campaign for America's Future (CAF), CAF affiliate Institute for America's Future, International Brotherhood of Teamsters, MoveOn.org and USAction.
Remember that during the Bush era fight in Congress, the AFL-CIO, mindful that many investment firms managed labor-controlled pension fund assets, suddenly decided that protecting Social Security was Big Labor's "fiduciary duty."
The New York City Employees' Retirement System wrote threatening letters to investment houses warning that if they backed major changes to the program, labor would take their position into consideration when deciding whether the firms would continue to manage the assets of union pension funds. Translation: Support Social Security reform and lose some huge clients. Labor officials also launched a PR offensive against the firms in the media to make sure they didn't back reform.
So, never forget how Social Security got to where it is now.
Comments
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Pingback| 5.13.09 @ 1:20AM
The Looming Liberal-Caused Social Security Disaster | But As For Me links to this page. Here’s an excerpt:
Pingback| 5.13.09 @ 5:13AM
The American Spectator : AmSpecBlog : The Looming Liberal-Caused … « Security links to this page. Here’s an excerpt:
Doc| 5.13.09 @ 7:01AM
It's like shooting yourself in the foot, then cutting off your leg to stop the bleeding.
Jeanne| 5.13.09 @ 11:18AM
We all know, or should know, that the Social Security balance sheet could have been adjusted to support the demographics of the baby boomers with minor adjustments to the amount individuals and employers contribute and/or with other minor adjustments to the age when full program benefits are available to retirees.
For years, Republicans and Democrats failed to make these changes. Instead, during the Bush administration there was an effort to privatize Social Security, a move that would have put the program greatly at risk and, given the recent downturn in the stock market, destroyed much of the investments we were asked to make.
All we need to do is make the much needed and over due adjustments and this important safety net for retirees will survive. Let's work together and make it happen....now!
Lynn| 5.13.09 @ 12:02PM
Why does everyone assume (assuming makes an ass of you and me) that privatizing part of Social Security automatically means you invest in the stock market? There are other very conservative investments, CD's, US Treasury's. You'd still be earning more that what Social Security is earning now and it would be yours. And it should be done while we still have a little bit of time where there are still more workers paying into the system than there are taking out. Time is not on our side.
Joel| 5.13.09 @ 12:12PM
Jeanne, You have the right idea but the blame was known to ALL in the late 60's & for sure in the 70's that adjustment and new rules to STOP issueing SSI payments unless as ORIGINALLY designed. ie. immigrants, disabled 50 & younger and so on. Face it the piggy back is going broke and the only fix is for me & everybody else to wave good bye. Or as Gotti says - forgeddaboutit
Paul| 5.13.09 @ 12:35PM
Lets not loose sight of the fact that SS benefits are taxed as well as pensions. The add-ons such as Medicaid, disabilities, children of deceased recipiants, etc that Congress has decided has drained the Trust Fund. If they had not made these adjustment, reform would not be necessary. SS benefits for illegals should be not allowed but it will be by this Congress.
Stan Redmond| 5.13.09 @ 1:13PM
Here's an idea for reform coming from a successful business owner in mid 30's. Phase out the entire program. How is it we managed for so long without all these entitlements and thrived as a nation (with family, church, and charity care helping people)? Now, we have been so brainwashed in to expencting and demanding benefits paid for by other people because we're told we are entitled to them. It's sad.
Pingback| 5.13.09 @ 2:25PM
Twitted by whotnaught links to this page. Here’s an excerpt:
Sean| 5.13.09 @ 4:05PM
It is time to get rid of Social Security. There is no Constitutional authority for it and is just another way to rob workers and their decedents.
MT| 5.13.09 @ 10:18PM
Good luck getting rid of this Ponzi scheme; the old folks will riot in the streets.
KevlarKevin| 5.14.09 @ 1:35AM
But the old folks will be easy to knock over. Just take away their canes.
ruth| 5.14.09 @ 4:08AM
Nice, real nice, Kevin. Don't know about your mom, but I still don't mess with mine.
Jeanne| 5.14.09 @ 7:03PM
My parents lived on $1000/mo Social Security plus the $300/month my dad got from his employer backed pension. Thank God their grown children were able to help them some, like when their 20 year old car died and we helped get them another used car they used for the rest of their lives.
I'm retired now (actually working part time) and a major amount of my retirement income is from Social Security. Thank God I was able to save and invest some so I'm much better off than my parents were.
Those who say, "Get rid of Social Security." don't seem to understand how a whole lot of us hardworking Americans get by...and how hard life would be if we didn't have it.
MT| 5.14.09 @ 11:09PM
I understand your point, Jeanne--but I feel bad for the youngsters, too. There's nothing left for them.
Jeanne| 5.15.09 @ 5:35AM
MT: To say that there is nothing left for the next generation isn't true. If we don't adjust it, it's going to be out of balance because of demographics. Everytime I get a paycheck, some more goes into the Social Security system. We just have to take some action now to increase input and reduce output to keep this system alive. I don't want to go back to the pre-social security world.
An example:
My grandmother worked at a mental hospital in the 1920-30s. She said at least half of the people living there were not insane, they were old and/or poor. We need to have systems that help people remain independent and healthy. This is not socialism, it's rational.
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