The Hill yesterday set the standard for coverage of the president’s remarks in a Columbus, Ohio, backyard town hall meeting. Jordan Fabian reported that the president said Social Security is not in crisis, and needs only modest changes to keep it solvent. We don’t know which changes the president had in mind, because The Hill didn’t report whether he had been asked that important follow-up by the carefully screened participants in the backyard—or the press. We do know that The Hill’s story was picked up mostly by a bunch of bloggers who tended to repeat the president’s twin themes without much scrutiny.
One was the “I am against privatization” message. “I have been adamant that Social Security should not be privatized, and it will not be privatized as long as I am president,” he told the participants.” He talked about “some fairly modest changes that could be made without resorting to any newfangled schemes.” Presumably he meant individual savings accounts, which would hold a person’s Social Security contributions, earn interest, and yield big fees for the investment firms that would sell the accounts. As Campaign Desk pointed out earlier this week, privatization is not on the table this year, at least directly, and is a stalking horse for the real issues—raising the retirement age for collecting full Social Security benefits, and beginning to means-test the program by perhaps cutting benefits for recipients who have more money.
Is the president pulling the wool over the eyes of the public? Here is where his code speak comes in. He said that Social Security “has to be tweaked because the population is getting older.” Tweaks? Fairly modest changes? Making people wait until age seventy to collect all of their benefits might not be a tweak or a fairly modest change to those who have worked in physically demanding jobs all their lives, or have been thrown out of the workplace and can’t find a new job at age sixty or sixty-seven. A poll by Stan Greenberg and colleagues released last week found that 65 percent of likely voters do not support raising the retirement age. But if the president continues to talk in code, and the press continues to dutifully pass along his double speak, they may never get a chance to voice their opinions. They won’t understand what’s happening.
Los Angeles Times columnist Michael Hiltzik recently warned about those minor tweaks. He wrote that the simplicity of the program from the standpoint of beneficiaries—the checks just keep coming—“masks the complexity of its inner workings.” And that’s “what allows the program’s antagonists to disguise their efforts to destroy it as merely minor tweaks.” Some of them, Hiltzik noted, can have dire consequences for the people who rely on those checks for their bread and butter.
This requires from the rest of us, he said, “never-ending vigilance.” I like to think Hiltzik was talking about the press.
Candidate Obama said he would fix Social Security by raising the cap on the level of income for which contributions are made. He suggested that Social Security assessments might stop at the current level and start again at $150,000 per person. He never said anything about raising the age of eligibility.
#1 Posted by jrsposter, CJR on Sun 22 Aug 2010 at 08:07 AM
Oh my gosh!! A candidate lied about his intentions once elected to office. Obama said lots of good stuff that many of us are still waiting to see happen. Don't hold your breath. Worse than his having not been totally honest about his intentions if elected is his current Deficit Commission. hand picked to devastate Social Security if our elected representatives in the Congress don't start to wake up to the needs of working Americans. The entire Commission thing is a bad joke and the American workers are the butt. They'll argue about the most draconian approaches to fixing a system that isn't broke and end up with a "compromise" that is likely to do irreparable harm to that very system. The irony is that it's being done under the Administration of a guy that the crazy right wing is calling a socialist. Maybe they mean that he goes to a lot of parties. He's a real sociable guy, but he certainly doesn't even approach the ideals of a socialist, nor a populist for that matter.
#2 Posted by Jack, CJR on Sun 22 Aug 2010 at 05:20 PM
not secret or rocket science, options spelled out in greenspan reform options of 83 and more recent Orszag Diamond book. you can raise eligibility age, raise employment taxes, change taxation of benefits, adjust cola formula, raise taxable wage base. that's about it. makes no sense for officials to select from that menu yet until there's a formal negotiation, which isn't anywhere in sight at the moment, lest they be pilloried and pledge to take options off the table, which will make ultimate negotiations that much more difficult.
#3 Posted by jim jaffe, CJR on Sun 22 Aug 2010 at 05:40 PM