WG: As we are learning every day, most of them gave up on the press a long time ago. They realized that newspapers were not on their side. There was no longer that old-time relationship. People got the feeling that newspapers weren’t speaking for them. The new technologies give the “losers” new options for how to inform themselves. Some of these are half-baked or worse, but people will keep exploring alternatives and refining what they are willing to trust. The crucial point I am trying to make is that this process of citizens in a democracy keeping themselves informed does not belong to private enterprise. It does not depend on finding the right business model. People must find a way—and I think they will—regardless of whether newspaper and broadcasting owners want to assist them, or merely make money.
TL: Let’s go back and put all this in the context of the press coverage of Social Security. What should the press be reporting that they haven’t been?
WG: Opponents of Social Security are deliberately confusing Social Security with Medicare; they are distorting reality. There are simple facts that should be reported: 1) Social Security never contributed a dime to the deficit; 2) Social Security softened the impact of the Reagan deficits by building up a surplus; 3) the federal government borrowed the money and spent it on other things; 4) the federal government has to pay this money back because it really belongs to the working people who paid their FICA deductions every pay day. The elites in both parties know the day is approaching when the federal government has to come up with the trillions it borrowed from the workers. That is the crisis the politicians don’t want to deal with, so they create a phony argument that slyly blames working people for their problem. That’s the propaganda they want the public to believe.
TL: What are the facts about Medicare that they should be reporting?
WG: Medicare is separate and in serious financial trouble for two basic reasons driving up costs. First, thanks to medical advances and the effective public health system, our aging population gets to live steadily longer. That ought to be understood as good news for people and society, but instead elite opinion laments it. Second, the private health-care system is still centered on the profit motive, and that gives virtually every health care provider from doctors to drug companies strong incentive to keep raising the costs. That debate has also been grossly distorted in media coverage that typically dismisses alternatives as socialist—and that ends the discussion.
TL: Who is representing the public in this debate?
WG: The same people who rallied the public against Social Security privatization in the Bush administration. They have organized again. Some are the same players. Labor is on the barricades. Some righteous members of Congress. But in general the mass media don’t go to those dissenting voices. Instead, they are reporting factual errors as correct opinion.
TL: What do you want the press to do?
WG: I am daring reporters to go and find out the truth about this and report it. I’m not asking them to draw big conclusions or to assert their opinions. Just be honest reporters. It’s so frustrating to see the coverage. I’m not asking reporters to change any minds. I’m just asking them to do some real reporting. I mean, go to the facts—the actuarial records—and talk to a variety of experts. Reporters ring up the same sources and ask them how to think about Social Security.
TL: What does the public understand about what is happening?
WG: Not everyone understands what is happening. But most do. Most people know they have paid money into Social Security all these years and the money belongs to them, not the federal government. This is not welfare. It’s probably the best-understood program in the federal government. In fact, polls indicate in these troubled times the public believes people need increased benefits.
TL: Why hasn’t the press talked about Social Security as social insurance?

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