1.28.2005
Goodbye New Deal; Hello Raw Deal (CommonDreams.org(
by Karen Dolan
In the wake of somewhat of an uproar from progressives, Democrats and even some Republican leaders, President George W. Bush is now backing away from saying that Social Security faces a “crisis.” He has toned down the rhetoric and now refers to a slightly less ominous significant “problem” when he refers to the system that keeps millions of elderly Americans out of poverty.
Let’s get some perspective: Many economists, notably those at the Center on Economic and Policy Research and the Congressional Budget Office, have made it clear that Social Security will remain sound, at least until 2052. Even after that date, the program will still be able to pay out benefits at least equivalent, even adjusted for inflation, to those being distributed today. Indefinitely. With no change whatsoever. The reality is that Social Security is the most financially sound today than it has been since its conception 70 years ago.
Nor will the Baby Boomers’ retirement bankrupt Social Security. First, most Baby Boomers will expire themselves before Social Security shows any signs of instability and second, Social Security cannot become “bankrupt.” Social Security currently has a surplus of $150 billion held in bonds backed by the full faith and credit of the United States government. Only in the case of the US defaulting on its bonds, would the program be “bankrupt.” Not only is this scenario implausible, but the U.S. has never defaulted on its bonds, no one is suggesting that it will, and a world-wide financial crisis would ensue if it were to happen.
So, why is this administration focusing on the issue, initially as a “crisis” and at least as a major “problem”? Because the radically conservative powers-that-be see the opportunity to dismantle the New Deal that brought the Democrats into power for many of the last 70 years. It’s part of this administration’s goal and ideology, to reverse the New Deal and replace it with a system driven by the conservative ideology of privatization to support business and a failed “trickle-down” economic theory. They wish to a shred the social safety net that has enhanced the quality of life in our country for most of the 20th century. Privatization, even partially, of the Social Security program is a boon for Wall Street that poses great risks and increases the likelihood of a fall into poverty for retiring Americans.
(More ... Goodbye New Deal; Hello Raw Deal) ¶ 09:00
In the wake of somewhat of an uproar from progressives, Democrats and even some Republican leaders, President George W. Bush is now backing away from saying that Social Security faces a “crisis.” He has toned down the rhetoric and now refers to a slightly less ominous significant “problem” when he refers to the system that keeps millions of elderly Americans out of poverty.
Let’s get some perspective: Many economists, notably those at the Center on Economic and Policy Research and the Congressional Budget Office, have made it clear that Social Security will remain sound, at least until 2052. Even after that date, the program will still be able to pay out benefits at least equivalent, even adjusted for inflation, to those being distributed today. Indefinitely. With no change whatsoever. The reality is that Social Security is the most financially sound today than it has been since its conception 70 years ago.
Nor will the Baby Boomers’ retirement bankrupt Social Security. First, most Baby Boomers will expire themselves before Social Security shows any signs of instability and second, Social Security cannot become “bankrupt.” Social Security currently has a surplus of $150 billion held in bonds backed by the full faith and credit of the United States government. Only in the case of the US defaulting on its bonds, would the program be “bankrupt.” Not only is this scenario implausible, but the U.S. has never defaulted on its bonds, no one is suggesting that it will, and a world-wide financial crisis would ensue if it were to happen.
So, why is this administration focusing on the issue, initially as a “crisis” and at least as a major “problem”? Because the radically conservative powers-that-be see the opportunity to dismantle the New Deal that brought the Democrats into power for many of the last 70 years. It’s part of this administration’s goal and ideology, to reverse the New Deal and replace it with a system driven by the conservative ideology of privatization to support business and a failed “trickle-down” economic theory. They wish to a shred the social safety net that has enhanced the quality of life in our country for most of the 20th century. Privatization, even partially, of the Social Security program is a boon for Wall Street that poses great risks and increases the likelihood of a fall into poverty for retiring Americans.
(More ... Goodbye New Deal; Hello Raw Deal) ¶ 09:00
