Ouch! That was the media’s general reaction yesterday to the ideas in the report issued by the co-chairs of the president’s deficit commission. Had news outlets been following this story since the beginning of the year, when the commission was appointed, they would not have been surprised by what was dumped on the table. “This is the first time we got significant major media about the commission,” observed Alex Lawson, who does communications for Social Security Works, an advocacy group opposed to cutting the program. Because the ideas laid out by co-chairs Alan Simpson and Erskine Bowles were so drastic, the media’s ears perked up.
We looked at several national news sources, and a few regional ones, to see how they were covering the recommendations. Unsurprisingly, nobody offered the sort of informed, comprehensive reporting that Americans need if they are to understand what entitlement reform will ultimately mean for them.
The networks prominently played the story, presenting the recommendations as painful steps that nevertheless needed to be taken. “It’s got to come from somewhere,” NBC’s Brian Williams intoned. “What would you cut?” And again, later: “It’s not going to be popular but again it’s got to come from somewhere. And the question again is where would you cut?”
Other news outlets cherry-picked from among the fifty-eight cuts or tax increases contemplated by the Simpson-Bowles document. In its typical staccato style, USA Today listed a bunch of suggested savings—cutting the federal workforce by ten percent over ten years, freezing federal salaries, eliminating earmarks, cutting back Pentagon weapons purchases. This story did not mention Social Security or Medicare. It should have.
One AP story zoomed in on the recommendation that the retirement age gradually increase to sixty-nine, and that the tax break for mortgage interest was on the line. This story also noted that “better-off beneficiaries would receive smaller Social Security payments than those in lower earning brackets under the proposal.” It didn’t explain that the proposal would also open the door for means testing, which could pull “wealthier” people with political influence out of the system, thus undermining its stability. Another AP story simply said: “Under the chairmen’s proposal, Medicare spending would be curtailed.” Readers got no further explanation.
Other stories emphasized the political sphere, setting up a kind of he said/she said dynamic about the coming confrontation between liberals and conservatives. Pretty high in its piece, The New York Times reported that “liberal groups immediately condemned the plan when news of it broke, for its Social Security and Medicare changes and for the scope of the spending cuts.” A few graphs later, we learn that Republicans will challenge the notion that the budget can be balanced only by cutting spending. While the Times mentioned some of the blueprint’s particulars, its piece was essentially a political process story. A similar Los Angeles Times story noted in the third graph that the proposal was not likely to survive a congressional vote, and included quotes from politicos and advocates signaling a fight ahead.
But while there was plenty of reporting on the political consequences of the Simspon/Bowles recommendations, there wasn’t much reporting on what they will mean for vulnerable Americans. Perhaps that’s okay for a first day story. But we might have thought that at least the Florida papers would have been first out of the box telling their older readers how they are really going to feel the pinch, lending credence to the fears about Medicare they expressed in last week’s election. As far as we can tell, they didn’t. Instead, the day the report came out, the Miami Herald, the Sarasota Herald-Tribune, and the St. Petersburg Times ran an AP story; the South Florida Sun-Sentinel went with the Los Angeles Times piece that went out on the Tribune wire. We know that times are tough and that newsrooms have been cut to the bone. But this is one national story that needs to be localized.
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You say that Bowles Simpson propose instituting a means tax on Social Security benefits. Guess what? There already is one as benefits are taxed for those earning above a threshold and not for those earning below the threshold. Despite your blinders on Social Security, it remains a fact that the increasing numbers of people collecting Social Security (baby boomers plus improved longevity) will be putting a substantial strain on the system which can only be solved by higher taxes, lower benefits, a later retirement age or some combination of those. One can have differing views regarding the right way to solve the problem but one can't pretend the problem doesn't exist or that it shouldn't be dealt with now because the decisions we make today will be dealing with a problem that won't have explosive financial consequences for decades.
#1 Posted by Jerry, CJR on Mon 15 Nov 2010 at 03:37 PM
"You say that Bowles Simpson propose instituting a means tax on Social Security benefits"
Where did she say that?
And the people who are pretending the problem doesn't exist are the people trying to extend the Bush tax cuts
http://voices.washingtonpost.com/ezra-klein/2010/08/how_to_fix_social_security_in.html
while cutting even more upper bracket and corporate taxes like is suggested in the Simpson/Bowles power point policy presentation.
This is by design. It has been since Reagan and Greenspan reformed social security taxes in a way that shifted half of government revenue comes from FICA.
http://www.csmonitor.com/2005/0127/p09s01-coop.html
This is about the rich not wanting to pay their own damned way.
PS. The single biggest driver of future deficits, health care, got a couple of lines of meaningless proposals. "Keep costs down" statements without a description of mechanism or rationale. Simpson and Bowles should be embarrassed that they took months to work on this, with months of secret consultations with supposed experts, and they submitted this ragged doc like it was grade school homework.
Important matters like this shouldn't be framed by people this stupid and unprofessional.
#2 Posted by Thimbles, CJR on Mon 15 Nov 2010 at 07:02 PM
Here is the reality of social security:
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/28/AR2007102801150.html
"Social Security has never been more important to more Americans than it is now. Private pension plans continue to dwindle -- currently covering only about 20 percent of private-sector employees -- and the national rate of savings hovers around zero. We just can't afford to cut Social Security benefits further. There's no way to make up for the loss.
Social Security benefits are vital to nearly all recipients. About a third of the elderly rely on Social Security for 90 percent or more of their income; two-thirds count on it to supply at least half of their income. The program lifts 13 million elderly beneficiaries above poverty.
Without Social Security, 55 percent of the disabled -- and a million children -- would live in poverty. The program is particularly important to women and minorities. It provides 90 percent or more of the incomes of almost half of all unmarried women age 65 and older (including those who are widowed, are divorced or never married), and it is the sole source of income for 40 percent of elderly African Americans and Hispanic Americans.
Social Security is the nation's most effective anti-poverty program. But it's much more than that. For every worker it provides a solid base on which to try to build an adequate level of retirement income. To weaken that foundation would be grossly irresponsible.
The good news is that there's no need to weaken it. We can shore up Social Security for the future without cutting benefits -- or raising contribution rates. The program can be brought into close actuarial balance over the long run with just three revenue-enhancing changes that are desirable in any case:
¿ Gradually increase the maximum amount of earnings covered by Social Security so that the traditional goal -- covering 90 percent of all earnings -- is once again achieved. This change would affect only the 6 percent of earners who make more than the maximum covered amount (now just under $100,000), and implementing the change gradually over the next 20 to 30 years would have only a minimal impact on them.
¿ Allow Social Security to improve earnings by investing some of its assets -- up to 20 percent, say -- in equities, as just about all other public and private pension plans do.
¿ Provide a new source of income by retaining a residual estate tax and dedicating it to Social Security. By 2010, the estate tax will affect only individuals with estates worth more than $3.5 million ($7 million for couples). Dedicating the income from the tax to Social Security would considerably improve the progressivity of Social Security financing as well as increasing revenue."
Medicare, medicaid need reform because the entire health care economy is broken. Social security is not the problem.
#3 Posted by Thimbles, CJR on Mon 15 Nov 2010 at 07:11 PM