Think Progress: Michele Bachmann: We Can't Afford Social Security and Medicare. We Need to Phase Them Out

Even though the abolition of Social Security may be considered 'unthinkable' by most people, there is a movement to accomplish just that. Millions of survivors and retirees depend on Social Security for their financial survival. Millions of others rely on it as the 'bedrock' of their retirement to supplement their insufficient retirement savings and meager company pensions. In many cases, their other income supplements their Sociial Security. Company pensions were a main source of retirement income in the recent past, but many companies have canceled their pension plans and now compel their employees to rely on IRA's, which are subject to the vagaries or the marketplace. According to Think Progress, " Rep. Michele Bachmann (R-MN) addressed the right-wing Constitutional Coalition's annual conference in St. Louis." They say, "Bachmann referenced Glenn Beck, who falsely warned about a $107 trillion in supposed 'unfunded liabilities' from Social Security and Medicare. She then called for a 'reorganization' of entitlements where people 'already in the system' would continue to receive benefits, but 'everybody else' would be weaned off."

The proposal of partial privatization of Social Security system by President George W. Bush, was a move to partially abolish the Social Security system. Social Security funds would have been placed in corporate stocks and bonds. It may be true that the market, over time, would yield better returns, but it is so unreliable. Witness the severe recession we are going through now. Imagine how you would feel if you were just ready to retire and your retirement fund lost one-half or more of its value. The recession should quiet the privatization movement for a while, but it will return.

There are people who ideologically consider Social Security a welfare program or a program to redistribute the wealth. A lot of politicians hold this view and would prefer to see the program abolished, but realize that at the present time, it would be political suicide. Of course I am speaking of politicians with a conservative philosophy.

In the Wikipedia article,"Social Security Debate. (United States)", President George W. Bush was quoted as saying, the system was "headed for bankruptcy." Most officials agree that the present system can pay full benefits until at least 2042. That makes Bush's statement appear to be a scare tactic to encourage adoption of his plan.

Quoting Wikipedia, "To assist the effort, Republican donors were asked after the election to help raise $50 million or more for a campaign in support of the proposal, with contributions expected from such sources as the conservative Club for Growth and the securities industry. In 1983, a Cato Institute paper had noted that privatization would require 'mobilizing the various coalitions that stand to benefit from the change, ... the business community, and financial institutions in particular ...' Soon after Bush's State of the Union speech, the Club for Growth began running television advertisements in the districts of Republican members of Congress whom it identified as undecided on the issue."

Please note that the groups solicited for funds to pressure Congress to enact the proposal were largely from Wall Street. Naturally they were the ones who would benefit the most by the investment of trillions of dollars in stocks and bonds from the privatized Social Security accounts. This was another case of the Republican Party trying to benefit their base at the expense of the public.

George W. Bush acknowledged that the wealthy are the Republican base. "At the Alfred Smith memorial dinner", according to CBS News, "Bush gazed around the diamond-studded $800-a-plate crowd and commented on the wealth on display." He then said, "This is an impressive crowd - the haves and the have-mores." "Some people call you the elite. I call you my base."

"According to many published reports, Enron employees watched in disbelief as their 401(k) retirement plans, many of which held only Enron stock, steadily and precipitously decreased in value as the company's share price slid from $90 in 2000 to less than a dollar at the close of 2001. In January of 2002, the company was delisted from the New York Stock Exchange. In all, about 18,000 - 20,000 employees lost an estimated $1.3 billion." This quote is from New York Life.

In this situation, having Social Security for a back-up can be a lifesaver. It can change a disaster into an unpleasant but manageable situation.

Jane Bryant Quinn says, "Fixing Social Security for the Boomers and beyond is a simple job. Blueprints abound, as they have for years. An adjustment in the payout formulas for new retirees (including a higher retirement age) and a small payroll tax increase would do the job. Gen X could then count on Social Security when they retire."

Our biggest problem is average people say they are not willing to accept any tax raise whatsoever and Congress doesn't have the backbone to raise taxes on the richest taxpayers, who can easily afford it.

The most important thing those of you who favor Social Security can do, is be very vigilant regarding any attempt to privatize or phase out Social Security, so that it will be there when you need it.

Sources:

"Lessons Learned from Enron"/New York Life

"Bush and Gore Do New York"/CBS News

Social Security Debate (United States)/Wi8kipedia

Jane Bryant Quinn/"Social Security: Murdered by Default"/Jane Bryant Quinn.com

Lee Fang/"Bachmann's Plan: To Deal With Debt, We Must 'Wean Everybody' Off Social Security, Medicare."/Think Progress

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