Get Ready For All-Out Assault On Social Security By Washington In 2017

December 31st, 2016

Awake Goy

Above Photo: Fabricator of Useless Articles/ Flickr

But Social Security is not like a 401(k) fund. It is a government program funded by taxes and with benefits set by Congress. It is a wholly political construct, in other words, and it will be whatever the public demands it to be. Sadly, because most of the corporate media have bought into the Republican-led scam that Social Security is just an investment program with a poor return, many younger Americans are losing confidence in its future. And so for years, during which, as even now, small tweaks in the funding of the program could have made the program fully solvent right through the period when a large population of Baby Boomers will be increasing benefit outlays, and into the foreseeable future, and that in fact would allow it to be expanded (European public retirement programs pay benefits that are about twice as large as those paid by the US Social Security system!), nothing has been done.

Make no mistake: this CBO report is the opening salvo of an all-out assault on Social Security, as Republicans, now thanks to Trump’s presidential win, seek to take advantage of their full control of the levers of power in Washington for at least the next two or more likely four years, try to do as much damage to the program as possible.

The only answer is for progressives to organize massively in support of this last and most critical piece of the old New Deal legacy of President Franklin Roosevelt. It will require massive protests in Washington and major cities of the country, incessant pressure on all elected officials, and a concerted educational program so that all Americans understand that this program is critical to their and their parents’ and grandparents’ survival.

The truth is that despite a decade of dithering by Republicans and limp Democrats also anxious to cut the program’s cost on behalf of their Wall Street contributors, Social Security could be fully funded for another 75 years or more by simply eliminating the cap on income subject to the FICA tax (currently only the first $118,500 of income is taxes, rising to 127,200 next year), so that all income is taxed, and benefits could even be expanded by adding a small transaction tax of a fraction of a percent on all short-term stock trading (a measure that would not impact long term investors or retirement funds).

It is a critical time for this organizing to begin because the attack on Social Security promises to be rapid and brutal. On the upside, rallying and organizing around a defense of this program can be the core of a new progressive movement that can address all the key issues facing us in the year and presidential term ahead. Just as an example, it would be difficult to rescue, and impossible to expand Social Security benefits if Trump and Congress go ahead with announced plans to expand spending on the military instead of cutting military spending.

This leaves us with only two ways to look at the new CBO report, which will now be cited ad nauseam by Republicans in Congress as a reason to cut back on Social Security benefits and on annual inflation adjustments to those benefits, to raise the retirement age for receiving full benefits (a disaster especially for poor workers who cannot continue the hard physical labor many of their jobs require), and to raise the FICA tax rate, already a regressive flat 6.2% for employees and employers. Either Trump and Congress are not really going to try to boost jobs and income, or are going to try using measures like deregulation and trade sanctions on imports that will not work, or the CBO is just providing a fraudulent projection in order to give a boost to Republican plans to gut Social Security.

So what’s really going on here?

It’s classic scare tactics.

The Republican game, one in which they are, as always, being shamelessly supported by many conservative Democrats, as well as by nearly every financial advisor in the financial industry, and by financial industry lobbyists, is and has long been to frighten younger workers into thinking that they are never going to receive Social Security benefits when they reach retirement age. The goal is to drive a wedge between these younger workers on the one hand and older workers and retirees on the other, who are looking at Social Security benefits as the mainstay of their lives in retirement. (Half of all Americans have no retirement savings — no IRA or 401(k) and no pension — and of those with savings, the average amount is $60,000 per family, according to the Economic Policy Institute, enough to pay out just $2400 per year in interest for life.)

In 2016, according to the Social Security Administration, 61 million Americans, or about one-fifth of the country’s population and nine out of 10 of the nation’s elderly and disabled, are receiving Social Security benefits. Of these, 48% of couples and 71% of single retirees depend on those benefits for 50% or more of their income. Furthermore, 21% of retired married couples and 43% of single retirees depend on those benefits for 90% or more of their income. Cutting Social Security benefits, or reducing them by stealth through continued under-adjustment for inflation each year, will wreak havoc with their lives.

Meanwhile the 75-year-old system, which has never missed a payment, has long been supported by all workers, young and old, first because of confidence that it will pay promised benefits, and equally importantly, because children and grandchildren paying into the system know that it is supporting their parents and grandparents, and helping to keep them out of poverty and also off the backs of their offspring. There is, in other words, an inherent solid logic in seeing Social Security as a national good for people of all ages.

The Republican strategy is to destroy this universal support by convincing the young of today that their FICA taxes are going into a black hole and that those funds won’t be available for them when it’s their turn to retire.

The idea is to pretend that Social Security is like an investment in stocks and bonds, and that the return is not very good in comparison to investing money in privately managed accounts (that’s what the Wall Street financial community wants: to get their hands on all those FICA funds which total nearly a trillion dollars a year!).

Source Article from https://popularresistance.org/get-ready-for-all-out-assault-on-social-security-by-washington-in-2017/