It’s fair to say that Sharron Angle is controversial. She’s the former Nevada state legislator who is running against Harry Reid, and some political bookies think she might give old Harry a run for his money in November. If that’s the case, it’s important for the media following the Angle angles to understand what exactly she is saying, and what that could mean for Americans.
Angle, it seems, doesn’t appear to know much about the Social Security system—what it is and what it is not. In a campaign ad, Reid captures Angle saying “My grandfather wouldn’t even take his Social Security check because he was not up for welfare.” Either grandpa was rich and didn’t need his check, or he didn’t know beans about Social Security.
Social Security is not welfare. Welfare implies assistance from the government based on means-tested criteria. People applying for assistance under Medicaid must have few assets and very little income, or they don’t get help. The modern day welfare program, Temporary Assistance for Needy Families (TANF), also comes with strict rules for eligibility. FDR’s genius was to fund Social Security with payroll taxes, thus giving everyone a stake in the program. Americans automatically have a right to retirement, survivors’, and disability benefits based on earnings during their working lives. The children and spouses of all those workers killed at the World Trade Center receive survivors’ benefits, and many of those who cleaned up the site now get disability benefits. That’s social insurance, not welfare. Similarly, Medicare is also social insurance. People who turn sixty-five automatically qualify; they don’t need to prove they’re poor or any of that stuff.
Since the Reagan years, detractors of Social Security and Medicare have successfully tarnished both programs as “entitlements.” Plainly put, entitlements now have a bad name, although the dictionary defines the word as the right to benefits as specified by law. Those on Social Security and Medicare have earned a right to their benefits.
More Angleisms are seeping out. The Las Vegas Sun told readers about her appearance on Fox and Friends, where she was asked about wanting to get rid of Social Security. She said something about putting the money in a lockbox for senior citizens, and that Harry Reid has been raiding Social Security. “What we need to do is personalize Social Security so the government can no longer raid it,” she said.
Personalize Social Security? That sounds like a euphemism for privatizing accounts—letting each person control his or her own contributions, investing them where they choose. That’s kind of what happened when 401(k) plans replaced defined benefit pension plans, the pension system’s Cadillacs. Workers could put their 401(k) money in stocks and make a bundle. Only problem was, stocks go down, and thousands have now lost much of the value of their retirement savings, which they may or may not be able to recoup.
But back to the Fox interview. Asked whether she wanted to get rid of Social Security, Angle replied that was “nonsense,” contradicting what her Web site says:
Free market alternatives, which offer retirement choices to employees and employers, must be developed and offered to those still in their wage earning years, as the Social Security system is transitioned out. Young workers must be encouraged to investigate personal retirement account options.
- 1
- 2
Ohhh yahhh … another in the series of “evil conservatives” are trying to starve grandma with lies about social security.
Since the Reagan years, detractors of Social Security and Medicare have successfully tarnished both programs as “entitlements.” Plainly put, entitlements now have a bad name, although the dictionary defines the word as the right to benefits as specified by law. Those on Social Security and Medicare have earned a right to their benefits.
Stenny Hoyer, right wing free market granny starving libertarian that he is, has this to say about the current state of entitlements:
As a matter of fact, on the path we’re on, the day will come, I fear, when we can’t afford a national security policy at all – because we’ll only be able to afford entitlement programs and interest payments to the Chinese and other creditors,” Hoyer plans to say in the speech Monday morning. “So it’s time to stop talking about fiscal discipline and national security threats as if they’re separate topics: debt is a national security threat, one of the greatest we know of.
Interestingly enough, Ronald Reagan did more to extend the viable life and solvency of Social Security than any administration since the program’s inception. How’s that for turning long held preconceptions on their heads.
“What we need to do is personalize Social Security so the government can no longer raid it,” she said. Personalize Social Security? That sounds like a euphemism for privatizing accounts—letting each person control his or her own contributions, investing them where they choose.
The nerve! How dare she! That smack of freedom!
That’s kind of what happened when 401(k) plans replaced defined benefit pension plans, the pension system’s Cadillacs. Workers could put their 401(k) money in stocks and make a bundle. Only problem was, stocks go down, and thousands have now lost much of the value of their retirement savings, which they may or may not be able to recoup.
This is what infuriates the most about people like you and the lies you tell.
Social Security is a Ponzi scheme plain and simple. There are no vested benefits as with private retirement accounts. All future benefits depend on the promise of politicians - some in office today, some in office 50 years from now. You may find this reassuring - I don't. Privatization does not mean investing 100% of your FICA contributions into stocks. It means having the CHOICE of investing in stocks, bonds, CD's, treasuries, etc. The real return on Social Security contributions for anybody reading this review who is under 50 years of age is close to 1% a year. For anybody under 30 years of age, the real return is probably negative. The only people for whom Social Security is a good financial deal are lower-income Americans, those with dependents, and those who tap the disability fund because of health reasons. If the government wants to continue this safety net for them, fine, but don’t make the rest of us suffer for it.
#1 Posted by Mike H, CJR on Mon 28 Jun 2010 at 03:54 PM
I love how you guys always try to have it both ways. In the same comment you say this: "Interestingly enough, Ronald Reagan did more to extend the viable life and solvency of Social Security than any administration since the program’s inception" then you says this "Social Security is a Ponzi scheme plain and simple". So Reagan did more to extend the viable life and solvency of a Ponzi Scheme. Beautiful logic.
#2 Posted by David Black, CJR on Mon 28 Jun 2010 at 09:56 PM
Actually, what Reagan (or his handlers) and Greenspan did was tell us, "We'll save Social Security if you'll give us these tax cuts for the wealthy". Reagan and Greenspan got their tax cuts, we got higher FICA taxes and now Social Security is on the chopping block.
Reagan and Greenspan are nothing more than con men.
#3 Posted by Ron R, CJR on Tue 29 Jun 2010 at 10:16 AM
This is a good article. Sharron Angle is a dangerous nutcase. Mike H's concerns are the usual warped thinking of people who spend too much time listening to talk radio instead of living in the real world.
Mike should consider the following:
As a democracy we have decided that providing a safety net to EVERYONE is essential to our collective, continuing well being. The founding fathers described this "promoting the general welfare."
Our democratic government put social security in place for a good reason. Markets (all markets) are unreliable. For a lot of different reasons, they tend toward entropy over time. Social Security is one way to counteract that enduring, inevitable uncertainty.
Privatizing Social Security does not reduce the inherent uncertainty of markets. If anything it reinforces it because markets (equities, bonds, treasuries, real estate) would become the only game in town. Mike's pretty emphatic about CHOICES. Privatizing social security takes away social security as a choice.
It is absolutely mind-blowing that people like Angle and Mike H can look at the failures that led to both the Great Depression and our own Great Recession and the huge success of Social Security and conclude that the thing that needs to be fixed is Social Security. How can people be so willfully stupid?
Pull your head out mike and take a look at the world as it really is, not as you imagine it to be.
Oh and by the way, regarding your Hoyer quote; our national security policy is a major cause of the debt. Fiscal discipline should focus on eliminating inefficiency and waste. CJR provided an insight into just how bad the financial management at the pentagon is:
http://www.cjr.org/the_audit/congress_gives_defense_spending_a_look.php
#4 Posted by Shahn, CJR on Tue 29 Jun 2010 at 10:32 AM
I can't imagine any attack on the Social Security system to be smart, polically. For the most part, only those who want to roll back the New Deal of the past are against it. Yes, Congress and past and prior administrations have been "borrowing" SS surplus funds and spending it. But they have left behind the accounting for this. That is how we know that there should be $2.4 trillion in the SS Trust Fund. The system has, is and will continue to work, with income from the payroll tax fully supporting all the payments from the system...and more!
Those who are working and looking forward to retirement want the system to work; those now receiving benefits want the system to work; and the children of those receiving benefits want the system to work.
Dismanteling it and privitizing it are the goals of those who want to destroy it and deny that it has ever worked at all.
Don't mess with Social Security! That should be the cry of those who support Harry Reid in Nevada.
#5 Posted by George Fulmore, CJR on Tue 29 Jun 2010 at 04:20 PM