Proposals to change the Social Security system have taken shape, and could foreshadow long-lasting effects on the program. Many of these call for substantial changes to Social Security, but the public largely has only a vague sense of how their benefits might change, both in the short term and the long term. Campaign Desk has for months urged a broader discussion of Social Security by the news media. Over the year the country’s elite news outlets and bloggers have carried on quite a conversation about the proposed changes—but how these proposals affect ordinary people has been largely absent from the discussion.
I sat down with longtime political reporter William Greider to find out why. Greider recently won the Nyhan Prize for political reporting, given by the Shorenstein Center on the Press, Politics, and Public Policy at Harvard University. He is currently the national affairs correspondent for The Nation and has written about about Social Security for that publication. He has also worked for The Washington Post and Rolling Stone, and has written several best-selling books, including Who Will Tell the People: A Betrayal of American Democracy, which touches on the media’s role in American democracy.
Trudy Lieberman: What are we to make of this consensus on fixes to Social Security that some in the media tell us has been reached?
William Greider: This is a staggering scandal for the media. I have yet to see a straightforward, non-ideological, non-argumentative piece in any major paper that describes the actual condition of Social Security. The core fact is that Social Security has not contributed a dime to the deficit, but has piled up trillions in surpluses, which the government has borrowed and spent. Social Security’s surpluses have actually offset the impact of the deficit, beginning with Reagan.
TL: Why don’t reporters report this?
WG: They identify with the wisdom of the elites who don’t want to talk about this—because if people understand that Social Security has a $2.5 trillion surplus, building toward more than $4 trillion, people will ask why are politicians trying to cut Social Security benefits?
TL: Is that why coverage has been so one-sided?
WG: Most reporters, with few exceptions, assume the respectables are telling the truth about Social Security, when it is really propaganda. What elites are saying is deeply misleading, and they deliberately are distorting the story. But reporters think they are smart people and must know what they are talking about.
TL: Who influences the coverage?
WG: There are layers of influence that tell reporters this is the safe side of the story. They don’t go to people who might be unsafe sources, like labor leaders who know how changes will affect workers, or to old liberals who are out of favor but who know the origins of Social Security and why it was set up in the first place, or to neutral experts like actuaries who actually understand how it works and what the trust funds are all about. If they write about what the AFL-CIO thinks, they are out of the orthodoxy.
TL: What are other layers?
WG: Most reporters who cover difficult areas typically develop sources, and they write for those sources. They don’t want to offend them for fear they will lose access. Reporters, we know, are sensitive, nervous animals; they act like scared little rabbits. They also know what the owners of their publications think. And those owners think pretty much what the Business Roundtable and Chamber of Commerce think.
TL: Are reporters disconnected from the public?
WG: Reporters are so embedded in the established way of understanding things. They are distanced from people at large and don’t spend much time trying to see why ordinary people see things differently from the people in power—and why people are often right about things.
TL: Is this different than in the past?
WG: Yes. In the last twenty years, as media ownership became highly concentrated, the gulf between the governing elites, both in and out of government, and the broad range of ordinary citizens has gotten much worse. The press chose to side with the governing elites and look down on the citizenry as ignorant or irrational, greedy, or even nutty.
Excellent interview.
www.NewsCommonsense.com
#1 Posted by Bob Griendling, CJR on Tue 21 Dec 2010 at 02:04 PM
A good place for reporters to start is to search online for a copy of the 2005 actuarial report from the trustees. It will give you a sense of perspective, because 2005 was the year President Bush announced his intent to privatize a portion of Social Security, and the report was prepared under the signature of his appointees. At the time, the trustees said that Social Security could continue to pay benefits at the current rate until 2041. It will tell you that at the end of 2004, the program had $1.7 trillion in assets set aside to handle the demographic bulge of the Baby Boomers, that the plan was bringing in far more tax dollars than it was spending on benefits, and that if WE AS A SOCIETY wanted to maintain Social Security in its present form there were at least three ways to fix the post-2041 shortfall. Here they are, quoting directly from the 2005 report: "For the trust funds to remain solvent throughout the 75-year projection period, the combined payroll tax rate could be increased during the period in a manner equivalent to an immediate and permanent increase of 1.92 percentage points, benefits could be reduced during the period in a manner equivalent to an immediate and permanent reduction of 12.8 percent, general revenue transfers equivalent to $4.0 trillion (in present value) could be made during the period, or some combination of approaches could be adopted."
Pleas note: Do any of these, or any combination, the trustees said, and it would fix the actuarial shortfall for 75 years.
Now, go to the 2010 report from President Obama's trustees and you'll see the trust fund has grown to $2.3 trillion in assets by the end of 2009,but the "problem" with Social Security remains much the same. We need to increase payroll taxes by 1.92 percentage points -- by 0.96% each for employees and workers -- only the date of exhaustion of the trust fund has been pushed forward to 2037. For a household earning $50,000 a year, that would mean paying another $480 a year into Social Security. Historically, Social Security payroll tax increases are phased in over several years, so maybe a quarter of the 0.96% per side might be imposed one year, another quarter a year or two later, etc., until the full tax increase is made.
Do you recall ever hearing President Bush, President Obama, Alan Simpson, or Erskine Bowles even mentioning a payroll tax increase as a potential way to address the Social Security situation? Me neither. Now, being good reporters, ask yourselves, why not? You'll be on your way.
#2 Posted by Joseph Conn, CJR on Sat 25 Dec 2010 at 02:40 PM
Fellow Nation Alumni, Christopher Hedges did a set on Democracy Now recently:
http://www.democracynow.org/2010/12/20/chris_hedges_obama_is_a_poster
Do you think that the one sided, slanted influences, coverage of social security might have to do with "the collapse of the pillars of liberal institutions"?
All the "radical elements" which prioritized social values over economic ones have been purged and marginalized from national discussion so that contemptible people, like Harold Ford Jr., are designated the acceptable form of liberalism to show on TV and report a perspective from.
And he sees social security as something to compromise on,
http://www.youtube.com/watch?v=5WXXG1tHEuE
so that is defined as the reasonable liberal position.
And when you contrast him with the tea party town hall attendees or the Fox News professional shouters, maybe he is. But he is, by no means, a representative of liberalism or liberal values.
And the problem with our institutions is that we define him as respectable and Howard Dean as radical.
The medium by which we are supposed to be communicating liberalism is defining liberalism without liberal input.
This is a problem when dealing with liberal programs and ideas.
#3 Posted by Thimbles, CJR on Mon 27 Dec 2010 at 01:26 AM
Wasn't it LBJ's "unified budget" that stopped separating the SS budget from the larger general funds?
Regardless, it's a broken ponzi scheme dreamed up by liberals and has got to go.
http://www.safehaven.com/article/19453/social-security-is-not-insurance
#4 Posted by Keefer, CJR on Thu 30 Dec 2010 at 12:52 PM
What is never reported is that the fate of the SS Trust Fund depends on our rate of economic growth. The SS actuaries in their “Low-cost” projection assume 2.8% average annual growth over 2010-2085. Though this rate is less than the average over the last 80 years, the Trust Fund under this assumption will have grown to $119.6 TRILLION by 2085. [See Social Security Trustees Report, 2010, Table VI.F8, http://www.socialsecurity.gov/OACT/TR/2010/VI_OASDHI_dollars.html#150920
Also see our summary and update, http://www.njfac.org/SSpkt.htm
The most important protection for SS is what investment in innovation, worker health and training, resource efficiency and the environment we make now for the future.
#5 Posted by June Zaccone, CJR on Fri 31 Dec 2010 at 12:09 PM
"Regardless, it's a broken ponzi scheme dreamed up by liberals and has got to go."
Actually the FACTS prove that statement wrong. You prove that you really don't understand Social Security by writing it.
But then you're getting nowhere when your link goes to a three paragraph article by Ron Paul anyway.
#6 Posted by Paul G, CJR on Mon 3 Jan 2011 at 01:57 AM
"Regardless, it's a broken ponzi scheme dreamed up by liberals and has got to go."
What's the weather like on Bizarro World?
#7 Posted by Brian, CJR on Tue 4 Jan 2011 at 03:04 PM
@Keefer: the Ron Paul article you cite is based on factual errors - the claim, for example, that "the status quo is an illusion that will not last even another 10 or 20 years". The social security trustees report clearly shows that, even with no changes whatsoever, the social security trust fund has a positive balance through 2037 (or 2040 if disability benefits are excluded). So Ron Paul, who has access to this information, simply lied. And you, who also have access to that information, bought the lie because it suits your ideology to do so. That's just sad.
#8 Posted by Dale Brayden, CJR on Sun 9 Jan 2011 at 02:47 PM