GOP sees a privatization comeback

August 15, 2005

Paul Krugman noted today that Bush’s drive privatize Social Security “flopped so badly that the topic has almost disappeared from national discussion.” That’s true, of course, but it’s part of a political problem for Dems. The whole debacle fell apart so quickly, there’s a real fear that voters might forget about it. Thankfully, Republicans are anxious to try the whole thing over again.

Lawmakers and interest groups are gearing up for a fight this fall over Social Security, each side hoping to use the retirement and disability program’s 70th birthday to build momentum. […]

The White House says Bush will renew his focus in early September after returning from a month of vacation. While he has succeeded in alerting the public about Social Security’s problems, polls show that most Americans don’t like his solution.

Republicans still vow to produce legislation, but Democrats confidently predict it’s too unpopular to pass.

Apparently, the White House hasn’t gotten the hint yet. A New York Times editorial on Friday noted that Bush met with his top economic advisers at the ranch last week and they focused on “redoubling efforts to privatize Social Security.”

And what is it, exactly, that leads the Bush gang to think this is a good idea? Apparently, they think passing CAFTA and an energy bill will translate into success on Social Security. No, they’re not kidding.

Basking in a series of legislative victories just before Congress broke for its August recess, Republicans are now claiming momentum for President Bush’s other agenda items, including his plan to overhaul the nation’s Social Security system.

These sources suggest that July’s successes show that Bush remains a formidable political figure who should not be underestimated for the remainder of the legislative year.

“I don’t know what the odds of getting a Social Security bill through are, but they are better than they were in June,” said Charlie Black, a Republican lobbyist with close ties to the White House. […]

With those victories [on trade and transportation] in the bag — and despite continued public wariness over the idea of allowing younger workers to invest a portion of their retirement savings in the stock market — Bush and the Republican majority in the House seem determined to move legislation on Social Security when Congress returns after Labor Day.

Talk about overreach — these guys barely passed a few bills that most Americans had never heard of and now they think they can privatize Social Security?

I didn’t think Dems could be this lucky.

Social Security is one part of our federal government. It happens to be one part that will run a pretty large surplus this year.

People who are fed up with this administration should ask the question, “With the overall federal government running deficits in the area of 300 to 400 billion per year right now, why should we worry about a federal program that will run a surplus for another 10-15 years and won’t go into the red for another 30 years after that?”

Shouldn’t we be worrying about programs that are adding to our enormous debt today rather than a program that won’t add a cent to our national debt for at least another 40 years?

  • Ted,
    The GOP approach to dealing with SS is just like their approach to Iraq. Ya see, someday down the road, maybe, social security might go in the red (just like Iraq might someday have developed WMDs and *maybe* used them against the US). Therefore we have to preemptively abort SS in order to make it a paradise just like we did to Iraq.

    Er…um, that analogy really didn’t work so well.

    LOOK! (Before you realize that everything the GOP touches turns to shit.) Did anyone notice what nice tits Katherine Harris has?!?

  • The solution to the SS problem is so simple – in reality if not politically – that it makes one wonder if the administration is just using it as a smokescreen for its myriad problems in Iraq.

    Eliminate the $90,000 cap on contributions. Even bump up the rate a point or two and voila…problem solved. The problem is that the Republicans – the slash and spend Republicans – have painted themselves into such a corner that they can’t legitimately raise taxes, even when it’s the right thing to do.

    Social Security is – and always has been – a government program that works. It’s long been a model of efficiency and benevolence. It has served its purpose and should continue to do so. The only “hiccup”, if you will, is the pig in the python that is the baby boom generation. Eliminate the cap and bump the rate, if necessary, now while the boomers – myself included – are in their prime earning years; then, reduce the tax burden after we’re gone.

    In fact, by the year in which most pundits are predicting that the system will run into the red (2041), causing what the SS Administration indicates will be a 26% reduction in benefits, most boomers will be long gone. I’m at the very tail end of the BB generation and I’ll be 78 that year, assuming I’m still alive.

    People need to understand that the magnitude of the problem is not only NOT large, it’s easily – and quickly – fixable.

  • Oh, and the other thing I forgot to mention:

    Many financial analysts have begin to revise the amount of money that most people will require to live out their retirement years. The typical assumption is 80% of their peak earnings. Many analysts now predict that this amount is far too high, based on what retired people actually spend.

    The following article by Scott Burns in the Dallas Morning News delves into this issue (free registration required):

    http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/2005/stories/081405dnbusburns2.2290e0f9.html

  • “…Republicans are now claiming momentum for President Bush’s other agenda items…”

    Sounds like Joementum. Hopefully with just as much success.

  • Drew, your points are valid; the only challenge is: Do you really think this administration is going to take away that free ride for those making over $90,000?? Not a chance!!!!

  • Phil…of course not. They’re too bloody stubborn to do the right thing. If anything, they’ll propose a REDUCTION in the cap in order to “put more spending money in people’s pockets.” Then they’ll use the even greater, resulting shortfall as additional justification to get rid of SS altogether – their ultimate goal.

    That’s the complete folly of America’s alleged support for the Bush administration. They will allow this band of thieves to suck the life out of the lower-to-middle class in order to line the pockets of the wealthy. And many in the lower-to-middle class will let it happen, apparently with smiles on their faces. They’re like the children of Hamelin being led about by the intoxicating melodies of the Pied Piper. It’s insane.

  • I would never have thought that these Republicans could possibly be this stupid. Although we’ll have to be vigilant and make sure they don’t dream up a whole boatload of new lies to tell.

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