While I’m still waiting to see what actually happens, before I make any condemnations, more information is now available, and the outrage expressed by congressional Democrats is a story on it’s own. Adjusting the COLA to reflect the effects of austerity is absurd. If austerity makes Senior citizens switch to eating dog food, because they can no longer afford cat food, this plan would say their cost of living is less because of it and reduce their COLA. Decreasing the increase by $0.14 per month, may sound tiny, but I ran a spreadsheet. It’s a lot more than it appears. Let look at this and at some of the reactions to this news.
In my spreadsheet, I discovered that, after ten years, a Social Security check would be $16.80 less than it would have been without the change, and the total cost to the beneficiary would be $1,016.40. After twenty years, the check would be $33.46 less, and the total reduction, $4,032.00. And after thirty years the check is down $50.12, and the total reduction, $9,046.80. That is NOT tiny.
Last night, rumors began flying that the president would offer cuts to Social Security as part of a deal to raise the debt ceiling. The administration is now trying to stem the tide of outrage, suggesting that the President merely wants to "strengthen" Social Security. Never mind that as Roosevelt Institute Senior Fellows Robert Johnson and Thomas Ferguson have clearly shown, the program is strong today and predictions about shortfalls decades down the road are wildly exaggerated. We asked Roosevelt fellows and friends to weigh in on the Social Security fracas.
Richard Kirsch, Senior Fellow at the Roosevelt Institute:
"Here are three numbers that tell the whole story on Social Security: $14,000; 90%; $0.
$14,000 is the average amount that a retiree gets a year from Social Security. A related number is 19.8 million, the number of people (including retirees; surviving spouses and the disabled) who are kept above the already skimpy federal poverty line because they collect even those low Social Security payments. Social Security makes up 90% or more of income for one-third of older Americans and 50% of income for half of retirees.
90% is the proportion of earnings that, if taxed at that level, would assure that Social Security is fully solvent for the next 75 years. For years that was the share of earnings on which workers paid Social Security, but the current level is closer to 83%. While middle-income wages have stagnated, upper incomes have grown rapidly, so that the Social Security cap of $106,800 in 2011 (the same as in 2010) is applied to a lower portion of earnings than it has been historically.
$0 is the amount that Social Security has contributed to the federal deficit. Ever… [emphasis added]
Inserted from <Huffington Post>
Since Social Security beneficiaries have not caused a penny of the debt, asking them to pay it off is ludicrous.
Keith Olbermann covered the story in two segments on Countdown.
In the second, he interviewed Bernie Sanders.
Bernie should be declared a national treasure.
Rachel Maddow interviewed Democratic CPC head Raul Grihalva.
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And Ed Shultz probably expressed the outrage best of all.
Visit msnbc.com for breaking news, world news, and news about the economy
Obama on raising the age limit or reducing COLA during 2008 campaign: "Let me be clear. I will not do either."
Now Obama may well be floating a trial balloon, hoping for a visceral response from us to help him justify making a firm stand. I hope so, I fear not, and I’ll still wait and see.
Caving-in could make the Republican wet dream come true.
23 Responses to “Outrage Over Social Security”
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I’m reserving judgement on this until we know the details. There are too many unsubstantiated rumors and too much hysteria at the moment to make a judgement call. Obama has proven to be pretty crafty and he’s smarter than all those Republicans put together, so for now I’ll give him the benefit of the doubt. However, if he doesn’t come through, he’ll be opening the door for another candidate to replace him.
I totally agree, Leslie! I hope sanity will prevail in this 👿 . Hysteria accomplishes nothing!
Make it three
I AM SO PISSED OFF ABOUT THIS THAT I WILL NOT VOTE FOR HIM AGAIN IF HE CUTS ANY OF THE BIG THREE, EVEN ONE CENT.
Not only will he do a great disservice to this country and the people that depend on him, but I think the DEMS should impeach him for it. REALLY. And Cantor and Boner should be shot in the head over EVEN SUGGESTING IT FOR ALL THE SHIT WE GIVE AWAY TO THE RICH AND CORPORATIONS. ENOUGH OF THIS BULLSHIT.
USE THE 14TH AMENDMENT AND CALL THEM OUT ON IT. GET YOUR SPINE BACK FROM BONER AND USE IT. THIS COUNTRY IS ALREADY GOING BACKWARDS BECAUSE OF THIS ASSHOLE. SO DON’T BE USING THE DEBT CEILING AS A REASON TO GO BACK ON PRINCIPLES THAT HAVE BEEN IN PLACE FOR 60+ YEARS. EVEN FUCKING GWB AND REAGAN WERE NOT THAT CRUEL.
A THOUSAND, MILLION, BILLION 😡 OVER THIS. YEAH, THIS IS WHAT THE MOM VOICE SOUNDS LIKE; TC YOU SHOULD BE ABLE TO HEAR ME IN OREGON OVER THIS AND I LIVE IN IL.
Lisa as much as I agree, if he gets the nomination, he should get our votes, not out of deserving them, but as the lesser of evils.
Right now, I’m waiting to hear what Pres. Obama has to say about this. Cantor and Boehner are both greedy, good-for-nothing jackasses.
Me too! (waiting)
you are so right!!
Ditto!
Paul Krugman’s piece in the NY Times yesterday was a fair and level-headed assessment of our concerns about what might be going on WRT putting Social Security and Medicare “on the table (Hate to use that trite phrase, but the whole article is worth a read):
http://www.nytimes.com/2011/07/08/opinion/08krugman.html?_r=2&hp
I’ll wait and see what actually is proposed, but it’s getting harder and harder for me to cut Obama any slack. This is NOT the “Change” I worked, donated and voted for.
I agree. I rarely use Krugman as a source, because so many places do that it’s reinventing the wheel.
If Obama caves, I’ll be campaigning for the House and Senate to oppose the deal.
I hope you are right and that this is a tactic to generate general outrage at the republican strategy.
Unfortunately, NOT voting for Obama in 2012 is not a solution. It only gives the republican candidate a better chance at winning by depriving Obama of votes. If you want to demonstrate your outrage at Obama in the voters booth, vote in the primary for another Democratic or third party candidate. Not voting, or voting for a third party candidate in the general election only hurts the Democrats and helps the republicans.
Seems kind of counter productive to me.
That’s good advise! I agree, Jerry!
Like you and Johnny, that is my position.
Lying Bastards do not give a damm about any thing except their lust for power and their own paychecks : None of them live in the real world– Term limits are way overdue!!
Refusing to vote for Obama only feeds into the right wing agenda-not voting , or voting for a third party out of spite only makes things worse and is certainly one of the factors that led to this current mess ;
My suggestion would include making many phone ,calls , e mails , letter etc– Make as much noise as possible ! Sitting on our hands does nothing except warm them-[-
AMEN ❗
Obama is a corporatist Republicrat who does not deserve to be reelected. This is not saying we deserve a Republcan. It says we better damn well get out and act, and speak, and scream for a real Democrat. If none dare rise to challenge Obama, we are doomed to his appeasing the Right, which is damn near the same as being one of them.
Shame on him. And Shame on us for allowing the Dems to become Jr. Republicans.
I will be ready and willing, if not able, to leave this sinking ship if we get another Fascist Republican in the White House.
Dave, I think the chances of anyone mounting a serious primary challenge to Obama fall between slim and none.
Eric Cantor ought to be strung up by his b—s.
Wrong. You can’t be strung up by what you don’t have. 😈
Knowing more details will be revealed after Sunday’s talks, I’m not waiting. I’m writing the President, my two senators and my representative to let them know my feelings. If this is the biggest betrayal in American Presidential politics, I don’t know what beats it.
I fully agree Ann. When I say I’m waiting, I mean to judge, but I’m demanding that the big 3 be protected.