What Social Security represents to us is insurance that we've paid for into most of our lives with the expectation it will be there when we retire. What Social Security represents to Wall Street is a giant fund to be plundered, abused, taken advantage of, and looted for the benefit of Wall Street bankers and investors. It's a giant money pot they want to get their hands on.
The recent payroll tax holiday compromise between President Obama and Republicans made Social Security vulnerable for the first time ever because Republicans and neoliberal Democrats now can claim it contributes to the deficit. In the tax cut deal, the President did not push for an agreement to raise the debt ceiling limit. Now the tax deal has passed with tax cuts for the wealthy, they need a way to get theirs and for us to sacrifice by cutting social and educational programs, health services, and Social Security.
The debt ceiling argument will be used in the "hostage-taking" under this scenario, to demand that Social Security be "reformed" via raising the retirement age and cutting back benefits in exchange for an agreement to let off on other policies that the Administration wants.
This is very much the position of the Third Way, a neoliberal organization, when it comes to Social Security:
Second is Social Security. Despite the talking-points memos emanating from each side, there is not a single sentient elected official who doesn’t believe Social Security is in danger of bankruptcy. Fortunately, the solutions that many have suggested are relatively easy and gradual. A very slow raise of the retirement age, a more accurate COLA adjustment based on a better inflation measure and a small increase in FICA contributions would just about save Social Security.
They also say that the Catfood Commission deficit proposal is the only one that matters. Rep. Schakowsky's alternate deficit reduction proposal, and other progressive proposals don't even factor into the discussion at all. The reason why Third Way's position on this matters is due to the recent appointment of William Daley to the chief of staff position at the White House. You see, William Daley sits on the Board of Trustees of the Third Way organization. He also served on the Committee on Deregulation at the Chamber of Commerce, and was one of the major proponents of NAFTA, which helped send millions of American jobs overseas.
When you see the President appointing a majority of members that are known to be hostile to Social Security, and continuing to support Alan Simpson in spite of his prejudiced comments against veterans, NOW, and other proponents of Social Security, and you see the continued validation of the Catfood Commission deficit proposal in Washington, D.C., even though polls have shown that a majority of Americans disagree with their proposals on Social Security. It leads one to conclude that this Administration supports "reforming" Social Security along the lines envisioned in the Catfood Commission report, and that one of the biggest proponents of the Third Way, Bill Daley, is now chief of staff in the White House. One of our front-pagers, mcjoan, has a good write-up on Bill Daley here which you can see.
Social Security is threatened from both sides---from Republicans and from neoliberal Democrats who ignore progressive policies in addressing Social Security.
So far, these excellent questions raised by jamess and others in a diary earlier today have gone unanswered. I'd like to see them answered if possible below:
- Why is the raise in the payroll tax cap not instituted immediately in the deficit commission report? It would take seventy-five years for the payroll tax cap raise to take effect.
- Why raise the retirement age when it has shown that it would be disastrous as a benefit cut for our seniors, and that the argument on longevity has been shown to be fallacious?
- Why does the Catfood Commission want to raise the retirement age in the relative near future but wants to slow down the raising of the cap so as to "prevent rapid buildup of the trust fund." (pg. 46 of Co-Chairs Proposal)
- If Social Security is in such danger, why do the Co-Chairs say they won't raise the cap for decades to "prevent rapid buildup of the trust fund"? (pg. 46 of Co-Chairs Proposal)
If you'd like to help me and others start preparing for the fight to preserve Social Security, you can help our early organizing efforts on Dailykos Beta 4.0, by joining our group Dailykos Kossacks For Action. All you have to do to join is to click "Follow" underneath the group name.