The Republicans' long-term 'fiscal' playbook is so predictable. It's always the same, whether at the Federal, State or corporate level. Whatever the market is doing, they always choose to spin the numbers so that - in the long run - they can cut back on pension and medical benefits for workers and savers. And then they kick back the surplus to the 1%, their friends and contributors.
Romney and Ryan are playing the same game. They want to finish the job started by President Bush. They want to destroy social security and medicare - the pensions and benefits of most American workers.
Phase 1- Sell High
The Republicans are clever. When the market is high they don't try and reduce pension benefits directly. Instead they reduce the contributions. They sleazily hint that the market will stay high forever. They feed "stories" like that to idiot business journalists. They talk about "new economics", "business models", "paradigm shifts", etc.
And then they put out stories saying that pension funds are "over-funded". And then they get the legislatures to lower actuarial standards and so they cut pension contributions. What do they do with the diverted 'excess' contributions? They reduce taxes, mostly for the wealthiest. They don't do anything productive or progressive like, say, reducing class size in inner cities or reducing sales taxes.
Then a few years go by. And they wait. Like hyenas, crouching in the shadows.
Phase 2 - Buy Low
Then when the market reverses and goes low - they exclaim "surprise" and "shock" at finding the pension funds have deficits. They dissemble, blaming "bureaucrats" and "waste". They warn of the dangers of losing "competitiveness". They attack with un-representative stories, citing single cases of double-dippers, and then insinuate that fraud and abuse are rampant. (They never mention that a decade before they led the fight to lower contributions).
And then - they solemnly clear their throats and they say 'we have a serious problem'. They say '"we" can't afford to meet our obligations'. And they say we need 'reform'. But what they are really doing is breaking their promises. And then they legislate reductions to pension and medical benefits.
They break promises, and call it reform.
And they knew all along they would do this.
See how it works?
Sell high. Wait ten years or so. Then buy low. Just another manufactured crisis, and the Republicans and their friends get commissions and tax breaks from churning our pensions.
That's what the Republicans have done at the state level.
That's what Romney and Bain did to the workers of the companies they bought. (It usually doesn't take ten years in the private sector since as managers they can add debt as soon as they takeover).
And that's what the Bush/Romney/Ryan plan is for Social Security and Medicare. They say Social Security and Medicare are in a crisis - but who manufactured the 'crisis'? The Republicans did.
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