State of Alabama secondary Archives: on Social Security

Al Franken: Social Security was the greatest achievement of the New Deal

But why did it need saving? Because there was a crisis looming. In 2042, a mere 37 years hence, Social Security would be "bankrupt," "flat broke."

The solution to this crisis? Driving a stake through the heart of the program by transforming it from a system of shared protection into a glorified IRA. Plus cutting benefits.

Al Franken: Raise the cap on income subject to the payroll tax

Polls consistently find that more than 2/3 of Americans favor getting rid of the cap entirely. Another strategy is to raise the cap to $120,000, or $150,000. Or the Social Security Administration could invest part of the Trust Fund in stocks, rather than treasury bonds, which would introduce a little bit of risk, but that risk would be shared by everyone.

Reasonable senators could sit down & solve the solvency problem in 5 minutes. Private accounts would do NOTHING to solve the solvency issue. Nothing.

Cato Institute: Changed term "privatization" to "choice" in 2002

Tanner was enough of a team player to change the name of the Cato Institute's "Project on Social Security Privatization" to the more politically palatable "Project on Social Security Choice" in 2002. Tanner let his guard down about what this was really all about: "In the end, this isn't a debate about the system's solvency in 2018 or 2042. It's about whether you think the government should be in control of your retirement or people should take ownership and responsibility. Our position is that people need to be responsible for their own lives."

Dwight Eisenhower: 1954: anyone attempting to abolish Social Security is stupid

"Should any political party attempt to abolish Social Security, unemployment insurance, and eliminate labor laws and farm programs, you would not hear of that party again in our political history. There is a tiny splinter group, of course, that believes you can do these things. Among them are H. L. Hunt (you possibly know his background), a few other Texas oil millionaires, and an occasional politician or businessman from other areas. Their number is negligible and they are stupid."

George W. Bush: Overhaul Social Security because it's unfair to black people

A questioner noted, "The average African-American male life expectancy is 69. But if the age is going to go to 67, you do the math. That's 2 years." The numbers came from a 1998 report by the extremely untrustworthy Heritage Foundation. The study assumed that every African-American man would live to EXACTLY 69 years of age, and then drop dead.

But Heritage ignored the fact that black men who reach 67 have a life expectancy of 79. That doesn't mean that they ALL die at 79. It's just an average. On average, black male retirees will receive Social Security benefits for 12 years--not 2.

In 2003, the nonpartisan Government Accountability Office found that "in the aggregate, blacks and Hispanics have higher disability rates and lower lifetime earnings, and thus receive greater benefits relative to taxes than whites."

Heritage Foundation: Minorities realize dismal return from Social Security

But Heritage ignored the fact that black males, like white males, die at every age. And Social Security also pays disability and survivor benefits. And because of the enormous racial inequality in this country, African-Americans are much more likely than whites to receive both.

In 2003, the nonpartisan Government Accountability Office found that "in the aggregate, blacks and Hispanics have higher disability rates and lower lifetime earnings, and thus receive greater benefits relative to taxes than whites."

Which is quite a contradiction to the Heritage Foundation's finding that "low-income African-American males realize particularly dismal rates of return from Social Security."