Friday, January 13, 2006
I started this blog with the promise of neutral viewpoints in my posts. This is going to be one of those rare times I disagree with the viewpoint of an entire political party on an issue. This issue is Social Security.
When I first heard about President Bush's plan to privatize Social Security I completely supported it. What a great idea; I could control my own destiny!!! When I began to read the fine print and read the list of supporters I got suspicious and then quickly changed my mind. I soon uncovered that the Republican Party under the leadership of President Bush is trying to eliminate Social Security under the false pretense of “saving” it.
Franklin Delano Roosevelt (FDR) signed the Social Security Act on August 14, 1935 amid an economic crisis. This crisis was the Great Depression. Many lower and middle class families were homeless, had little or no food, and little hope of gaining employment. The Social Security Act was part of FDR’s New Deal with Americans and was created to prevent life long, hard working Americans from losing everything due to retirement.
Before the New Deal, the federal government did little to help American citizens and gave less than 3 percent of the nation’s gross domestic product back to the people. The result was cyclical depressions and mass poverty suffered by the middle and lower classes. The New Deal was a incredible plan created to put Americans back to work and help lower classes get back on track. The Republicans, including Senator Prescott Bush (President Bush’s grandfather), were opposed to this ideal at the time, have fought through the years to defeat it but lost, and continue to oppose it today. Apparently the Republicans today and yesterday appreciated the Great Depression and support legislation and an economic plan to restore America to that period of its glory.
One of the most notorious attempts to destroy Social Security was made by Barry Goldwater, a political candidate for President in 1964. He actively campaigned against the program, calling it “a welfare program”, “a cancer”, he claimed that Social Security had “come to the end of the road”. Americans responded by voting overwhelming against Goldwater in one of the most lopsided elections in history. (Important note: GW Bush was a staunch Goldwater supporter and shared Goldwater’s opinions regarding the destruction of Social Security).
In fact, twenty years ago when Republicans mentioned cutbacks in Social Security benefits they lost control of the Senate. So now they have not changed their opinions of Social Security but have changed their strategy of attacking it.
For example, they now use phrases like “saving” and “strengthening” Social Security when they plan to do just the opposite. The “President’s Commission to Strengthen Social Security” is an ethnically diverse commission but is composed of individuals committed to privatizing Social Security. When President Reagan instilled a similar commission in the 1980’s he included the Democratic leadership and the commission was composed by appointees from both parties. The result was a bipartisan plan that strengthened Social Security. However, President Bush's commission did not get the approval of the Democrats and is comprised of people that share his opinions of Social Security. So what conclusion do you think they will come up with? You guessed it..........whatever the President wants.
The Privatization of Social Security
I understand why the upper class is in favor of the privatization of Social Security as it will reduce their taxes by virtually eliminating the program. Remember, they are wealthy and do not need a program like this to survive. But middle class families who support the privatization of Social Security must not really understand what this plan entails. If you support the President’s plan, here is what you support:
• Reduce benefits.
• Increase the Retirement age.
• Substantial risk management fees would drain income.
• Investment choices are severely limited.
• Earnings will not be passed to heirs because the purchasing of annuity plans would leave little to be inherited.
• If the stock market crashes or does not perform, or if you invest unwisely then you have no retirement at all. You are on the streets!!!
This does not sound a plan to "strengthen" Social Security; this sounds more like "limiting" and "eliminating" Social Security.
The President is using a scare tactic by claiming if Social Security remains unchanged the plan will be bankrupt. The truth is that if he would eliminate the “donut hole” tax gap and stop reducing taxes on the wealthiest 1% of Americans, the Social Security fund is very capable of supporting the baby boomers and can remain solvent for generations. But he is opposed to any plan where the upper class would have to participate. So his plan to “strengthen” is really just a plan to “eliminate”. So don’t be fooled by the words the government uses. Remember the Clean Air Act actually INCREASED the amount of pollutants that are allowed into the air.
I am not bashing Republicans or President Bush in general; it is important to note that I was just as critical of President Clinton when he did something (like sign NAFTA) that doomed the middle and lower classes. I cannot support a plan which could create an environment like the Great Depression. Most people live paycheck to paycheck, so the wealthy 1% of Americans can and should help out those unfortunate families incapable of funding their own retirement.
So now what is your opinion of the privatization of Social Security?
When I first heard about President Bush's plan to privatize Social Security I completely supported it. What a great idea; I could control my own destiny!!! When I began to read the fine print and read the list of supporters I got suspicious and then quickly changed my mind. I soon uncovered that the Republican Party under the leadership of President Bush is trying to eliminate Social Security under the false pretense of “saving” it.
Franklin Delano Roosevelt (FDR) signed the Social Security Act on August 14, 1935 amid an economic crisis. This crisis was the Great Depression. Many lower and middle class families were homeless, had little or no food, and little hope of gaining employment. The Social Security Act was part of FDR’s New Deal with Americans and was created to prevent life long, hard working Americans from losing everything due to retirement.
Before the New Deal, the federal government did little to help American citizens and gave less than 3 percent of the nation’s gross domestic product back to the people. The result was cyclical depressions and mass poverty suffered by the middle and lower classes. The New Deal was a incredible plan created to put Americans back to work and help lower classes get back on track. The Republicans, including Senator Prescott Bush (President Bush’s grandfather), were opposed to this ideal at the time, have fought through the years to defeat it but lost, and continue to oppose it today. Apparently the Republicans today and yesterday appreciated the Great Depression and support legislation and an economic plan to restore America to that period of its glory.
One of the most notorious attempts to destroy Social Security was made by Barry Goldwater, a political candidate for President in 1964. He actively campaigned against the program, calling it “a welfare program”, “a cancer”, he claimed that Social Security had “come to the end of the road”. Americans responded by voting overwhelming against Goldwater in one of the most lopsided elections in history. (Important note: GW Bush was a staunch Goldwater supporter and shared Goldwater’s opinions regarding the destruction of Social Security).
In fact, twenty years ago when Republicans mentioned cutbacks in Social Security benefits they lost control of the Senate. So now they have not changed their opinions of Social Security but have changed their strategy of attacking it.
For example, they now use phrases like “saving” and “strengthening” Social Security when they plan to do just the opposite. The “President’s Commission to Strengthen Social Security” is an ethnically diverse commission but is composed of individuals committed to privatizing Social Security. When President Reagan instilled a similar commission in the 1980’s he included the Democratic leadership and the commission was composed by appointees from both parties. The result was a bipartisan plan that strengthened Social Security. However, President Bush's commission did not get the approval of the Democrats and is comprised of people that share his opinions of Social Security. So what conclusion do you think they will come up with? You guessed it..........whatever the President wants.
The Privatization of Social Security
I understand why the upper class is in favor of the privatization of Social Security as it will reduce their taxes by virtually eliminating the program. Remember, they are wealthy and do not need a program like this to survive. But middle class families who support the privatization of Social Security must not really understand what this plan entails. If you support the President’s plan, here is what you support:
• Reduce benefits.
• Increase the Retirement age.
• Substantial risk management fees would drain income.
• Investment choices are severely limited.
• Earnings will not be passed to heirs because the purchasing of annuity plans would leave little to be inherited.
• If the stock market crashes or does not perform, or if you invest unwisely then you have no retirement at all. You are on the streets!!!
This does not sound a plan to "strengthen" Social Security; this sounds more like "limiting" and "eliminating" Social Security.
The President is using a scare tactic by claiming if Social Security remains unchanged the plan will be bankrupt. The truth is that if he would eliminate the “donut hole” tax gap and stop reducing taxes on the wealthiest 1% of Americans, the Social Security fund is very capable of supporting the baby boomers and can remain solvent for generations. But he is opposed to any plan where the upper class would have to participate. So his plan to “strengthen” is really just a plan to “eliminate”. So don’t be fooled by the words the government uses. Remember the Clean Air Act actually INCREASED the amount of pollutants that are allowed into the air.
I am not bashing Republicans or President Bush in general; it is important to note that I was just as critical of President Clinton when he did something (like sign NAFTA) that doomed the middle and lower classes. I cannot support a plan which could create an environment like the Great Depression. Most people live paycheck to paycheck, so the wealthy 1% of Americans can and should help out those unfortunate families incapable of funding their own retirement.
So now what is your opinion of the privatization of Social Security?
posted by DarthImmortal at 11:51 AM
3 Comments:
Very compelling. I was against the "strengthening" of SS too. It felt like a bad idea when I first heard about it. Many middle and lower income people have no idea how to invest and will surely pay exorbitant fees to private financial institutions which would further decrease their benefits.
Sure I would probably fair well in my investments, but I believe this is one of those times where I have to think about those around me. The people that I have talked to about this topic that are in favor of it are typically upper-middle class that are only concerned with themselves.
Thanks Laurie for your comments. I always enjoy reading your blog and appreciate you leaving a comment for me.
Casey,
Thanks for your comment.
I know we are on opposite side of the fence on this issue but I wanted to say a couple of things about your comment. I assume you realize 90% of the wealth is controlled by 10% of the people. I would also assume you realize of those 10%, 1% controls the majority of that wealth. Doesn’t that bother you? It bothers me.
We live in a system of rules that are slanted toward the top 1%. Our system does not promote new wealth but it assures the top 1% will not be challenged and will retain their wealth. Do you know that middle class wages are still declining while profits for the fortune 500 companies continue to rise? Do you realize that corporate executives earn millions of dollars in bonuses and then turn around and lay off scores of workers? Do you realize that most upper class families in major corporations get their health care provided by the company but not the lower class individuals? This is a system that is flawed – it needs help. I don’t think giving a little back will hurt these super wealthy people. Maybe you prefer a return to the “glory days” of the Great Depression when the government did nothing.
These bums that are so annoying to you are human beings not animals. Some of them might have been hard working at one time but now their job is gone and they have nothing left. Do you realize that many American are just one disaster away from homelessness? Most people live from paycheck to paycheck because the good jobs they used to have are now overseas being worked by people lucky enough to earn 25 cents an hour. And those overseas workers are still not given a living wage nor are they given health care or even a decent place to work.
What I just described to you is the upper class exploiting the lower classes. Globalization, which was created by the wealthy, is nothing but a new form of slavery. This is why the upper class “owes”. Unfortunately the free market system does not always work, so the government needs to intervene and help. I am sorry you cannot see the need for this. Again I have to say that maybe you prefer a return to the “glory days” of the Great Depression when the government did nothing and scores of Americans were homeless without food.
I am lucky to be in the upper income scales; I really do not have to worry about money. I have no debt other than my mortgage but most people are not like me. When I was young my mother struggled to raise us often turning to food stamps for help. If not for those programs we would have starved and would have been homeless too. In which case I would not be here today writing this; I would probably be either dead or in jail. So these programs are important, I am evidence of it.
Thanks again for your comment, check back often as I update the site with more stories and information.
Good Post.
Money = root of all evil.
I say, let me have enough to take care of myself and my family after I am no longer able to afford to take care of myself.
Do you know that the early Christian church was communist, but not Marxist? The Lord was their leader, and they were happy to take care of all the poor, sick, and needy, making sure they had all they need. While I hate Marxism, I am a fan of communal living if it is done properly. So much of our society has no community, so we need social security to take care of those that society will not.
I say, give me more of my money to let me determine what I can do with it: I can do more good for a few than if my money goes into a huge pot that everyone gets very little of.
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