Simpson Strikes Again

Alan Simpson, Co-chair of President Obama’s Catfood Commission has opened his mouth again, attacking seniors:

…because they are unhappy with his ideas for reducing the deficit by cutting Social Security benefits while reducing corporate taxes.

“I’ve never had any nastier mail or [been in a] more difficult position in my life,” Simpson told Jeremy Pelzer at the Casper Star-Tribune. “Just vicious. People I’ve known, relatives [saying], ‘You son of a bitch. How could you do this?'”

[….]

“We had the greatest generation,” Simpson said. “I think this is the greediest generation.”

Maybe you all have heard about this already–I wasn’t following the news too closely yesterday–but I just had to frontpage it. The nerve of this man! And why isn’t President Obama responding to his ugly slurs of elderly people who paid into Social Security for their entire lives? Why should we take cuts in Social Security so that rich people like Simpson can take more money for themselves?

From TPM:

The problem, Simpson explained, is the “polarized” country we live in, and the media that exemplifies it. He then to reeled off the media figures ruining America for deficit commissioners like him.

“You don’t want to listen to the right and the left — the extremes,” he said. “You don’t want to listen to Keith Olbermann and Rush Babe [Limbaugh] and Rachel Minnow [sic] or whatever that is, and Glenn Beck. They’re entertainers. They couldn’t govern their way out of a paper sack — from the right or the left. But they get paid a lot of money from you and advertisers — thirty, fifty million a year — to work you over and get you juiced up with emotion, fear, guilt, and racism. Emotion, fear, guilt, and racism.

Simpson refers to Rachel Maddow as “that.” Is that because she’s a lesbian or because she’s a woman or both?

At FDL, Jon Walker writes: Is Simpson an Obama-Appointed Bully or Sexist?

While I don’t know former Republican Senator Alan Simpson personally and can’t say definitively whether or not he is a sexist, his behavior says a lot about him. He’s repeatedly behaved and spoken in a manner completely consistent with sexists who have strong disdain for intelligent women. His schoolyard attempts at bullying women, the strange terms he uses, and his incredibly childish attempts at demeaning women who dare criticize with name calling are all trademarks of a sexist.

Walker ends with this:

I could care less about Simpson’s behavior if it weren’t for the fact that President Obama appointed him co-chair of the bipartisan President’s Deficit Commission. It’s disconcerting that Obama tolerates this sexist behavior. Why would he appoint Simpson and stay silent as Simpson used the perch Obama gave him to lash out in such a childish manner and pointedly against women?

The fact that President Obama has not yet countered any of the ugly words that have come out of Simpson’s mouth strongly suggests that Obama himself agrees with Simpson’s views. And Obama dares to call himself a Democrat?

But should Jon Walker or anyone else really be surprised? Obama is the same person who during the primaries in 2008 characterized Hillary Clinton’s experiences as First Lady as drinking tea with foreign ambassadors. He’s the same guy who suggested that Hillary’s “claws come out” if you “challenge the status quo,” and that when Hillary “is feeling down” she “periodically launches attacks.”

No one should be surprised at Obama supporting attacks on the elderly or gays either. Here at Skydancing, we can easily cite the many previous examples of President Obama’s disrespect for seniors and gays.

Alan Simpson is simply saying aloud in very crude language what the President of the United States apparently believes in his heart–if he has one.


This is a Democratic Adviser?

I have to admit to being with Digby on this one.   It’s getting more obvious to me that this Democratic Administration is going after our Social Security benefits with gusto.  You may recall that Peter Orzag was the Obama Budget Director and is now one of the major economic advisers to the President.  This contribution to the NYT is not the first flare to be fired, but it is a distinctly blinding one.

So, first Orzag admits that Social Security is not a federal deficit problem. You would think he’d end with that.  Social Security is an off budget program and it’s self funding and managing.  That’s the deal.  People pay for the benefits and they expect them.  It’s a third rail of politics and you’d think after Dubya’s adventures into handing the trust fund to Wall Street that would be all she wrote.  But, it’s not.  (Emphasis is mine on this.)

So it would be desirable to put the system on sounder financial footing. And that is precisely what the co-chairmen of President Obama’s bipartisan commission on reducing the national debt have bravely proposed to do. It’s too bad their proposal has been greeted with so much criticism, especially from progressives — who really should look at it as an opportunity to fix Social Security without privatizing it. Although the plan leans too much on future benefit reductions and not enough on revenue increases, it still offers a good starting point for reform.

The main flaw in the proposed Social Security plan is that it relies too little on revenue increases and too much on future benefit reductions. A reasonable objective would be a 50-50 balance between changes in benefits and changes in revenues. But the way to bring reform into better proportion is to adjust the components of this proposal, not to fundamentally remodel it.

Alrighty, so let’s first IGNORE the fact that the cat food commission had no real business sticking its nose into Social Security because it’s charter said it was to go after the Federal Deficit.  And, as Orzag has stated, Social Security is NO contributor to that deficit.

So, here’s where I agree with Digby.

I can hardly believe anyone of his stature could argue this nonsense. Orszag agrees that SS does not contribute to the long term deficit and yet is trying to convince us that that the Deficit Commission draft just put it on the table anyway, apparently out of a surfeit of progressive idealism. Huh? Moreover, he also thinks it makes sense to jump right on the third rail in American politics because it would be desirable” to do something about a potential future problem — when we are in the middle of an epic economic shitstorm with stubborn 10% unemployment and a banking and housing crisis that shows no sign of abating.

Is he ignorant of the fact that most people in this country are convinced — mainly because they’re being told it every single day by every politician, talking head and gasbag — that “entitlements” are destroying the economy and the future of the United States? The idea that social security cuts could buy the administration a chance for more stimulus is delusional.

Yup, delusional. And get this closer …

The White House has been handed a highly progressive reform plan for Social Security that could attract Republican support as well.

If this is progressive, I want to be known as something completely different.

This just seems to be the start of the swansong for the program.  BostonBoomer sent me this call for liberals to get on board with similar clarion calls today. It’s from USN and John Farrell.

Okay, my liberal friends. On Friday I explained why the proposals of the Simpson-Bowles commission should be welcomed, and put on the bargaining table by conservatives. Today I will argue, despite what Paul Krugman says, that there’s good stuff for liberals too.

Remember, first and foremost, that this is a starting point. You don’t have to buy into everything to keep the conversation going. And beware misinformation.

You know, this all seems to assume that we don’t have Democratic pols that make Faustian bargains with themselves before they even start dealing with the Republicans.  I have to admit that I’m with Krugman on this one too.

Right at the beginning of his administration, what Mr. Obama needed to do, above all, was fight for an economic plan commensurate with the scale of the crisis. Instead, he negotiated with himself before he ever got around to negotiating with Congress, proposing a plan that was clearly, grossly inadequate — then allowed that plan to be scaled back even further without protest. And the failure to act forcefully on the economy, more than anything else, accounts for the midterm “shellacking.”

You expect any one to fight for what’s right in Social Security given recent history like Krugman identifies?  I don’t. No hope or expectation of it at all.  After all, a major Presidential Advisor just call Allan Simpson brave instead of being labeled the crazy old coot he is.


Thursday Reads

Good Morning!! Today is Veterans Day.

The big news of the day is the draft report of the co-chairs President’s Catfood Commission, which is not going over too well even with the other members of the commission. Below are a few more reactions to yesterday’s announcement by Alan Simpson and Erskine Bowles–beyond the ones in Dakinikat’s post yesterday.

BTW, have you ever seen men who looked more dead inside than those two? As you would expect from such soulless men, they didn’t hesitate to advocate cuts to veterans’ benefits along with their attacks on the middle class, the poor, and old people.

So, on to those reactions.

At Huffpo, Dan Froomkin lists “Ten Flash Points In The Fiscal Commission Chairmen’s Proposal”

…taken as a whole, the plan authored by Erskine Bowles and Alan Simpson would have devastating effects on the government and its ability to help the most vulnerable in our society, and it would put the squeeze on the middle class, veterans, the elderly and the sick – all in the name of an abstract goal that ultimately only a bond-trader could love.

For a summary of the attack on veterans, Froomkin links to David Dayen at FDL:

They want to add co-pays to the Veterans’ Administration and TRICARE, as well as pushing individuals covered by TRICARE into an employer policy. They also want to freeze noncombat military pay for three years. And, they want to end schools for families on military bases, instead reintegrating soldier’s kids into the public school system (because that’s so easy for a military family that moves every other year).

The attack on old people and future retirement benefits for everyone:

Deficit Comm. Chairs’ Social Security Cuts Mean Seniors Pay for Wall Street Instead of Their Own Retirement, Says Bob Weiner, Ex-House Aging Committee Chief of Staff

The Deficit Commission “Chairmen’s Mark” proposal today for Social Security cuts, including raising the retirement age and reducing the cost of living, means that “Seniors will be paying for Wall Street instead of their own retirement, will be forced to work longer, and will be squeezed into poverty, despite the fact that the Social Security system has no debt for 30+ years based on what seniors have paid into it,” says former House Aging Committee Chief of Staff Robert Weiner.

“Social Security adds not a dime to the national debt for at least 30 years. What is really happening is cuts advocates are using the Social Security funds literally paid for by seniors to reverse other federal programs that do have deficits or are unpaid, and to pay for the tax breaks for the wealthy,” Weiner continues.

Michael Hiltzik: The deficit commission chairs’ lies about Social Security

Look out — the enemies of Social Security are locked and loaded for a renewed attack on the program.

The new volley comes from the co-chairs of the National Commission on Fiscal Responsibility and Reform, the so-called deficit commission ginned up by the White House as a sop to conservatives. The co-chairs are the profoundly clownish former Sen. Alan Simpson and Erskine Bowles, a Democrat with his feet firmly implanted on Wall Street….

The co-chairs propose to gut Social Security under the guise of “saving” it, eliminate federal funding for services and programs that heavily benefit the middle- and working classes, and — surprise — steer even more income tax cuts to the wealthy.

The cuts to Social Security are subtle, and for that reason worthy of close scrutiny. The co-chairs’ key proposal is to raise the regular retirement age to as high as 69, and raise the minimum retirement age to 64. This imposes disproportionate harm on lower-income workers, whose working lives tend to be shorter than others’. They also want to reduce relative benefits for better-paid workers, and change the formula for cost-of-living increases to one that looks like it would customarily produce lower COLAs.

Bloomberg summarized a range of reactions: U.S. Debt Proposal Would Cut Social Security, Taxes, Medicare A few quotes:
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Social Security: Reform, Refund, or Opt Out? (Part 4)

elderly%20ladiesThe aging burden is upon us and solutions are required quickly.  People are living longer.  There are three responses households face: consume less and save more when young, consume more and have lower monthly benefits when older, or work longer.   They should make these decisions with a combination of their own savings and employer savings plans.  They should plan retirement based on their preference to work and their health.  They should also be able to rely on a minimal public pension plan so that no one fears dying a bag lady. 

Government should respond when the public pension system is out of balance.  There should be a mandated cycle of revision.  The plan should be evaluated at least every five years and changes should be recommended by professionals to policymakers. Responses include: cutting benefits, raising taxes or contributions, subsidizing the program from general revenues or by issuing some form of debt, and generating a higher rate of return on the Trust Fund’s assets.  There is still the question of generational risk-bearing and redistribution answered by the pre-funded or PAYG choice.  Will the bigger burden lie with future generations or current generations?  It appears we must deal with the PAYG choice made during the depression years one way or another.

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Social Security: Reform, Refund or Opt-Out? (Part 3)

Lessons from the World

One of the most interesting things about the large number of countries Osaka Asahi Shinbunreforming their public pension programs is how dissimilar many are to the United States.  A large number are in Latin America or are Asia countries that are not experiencing the demographic challenges faced by the United States.  Instead, they reform their systems because the old systems have lost their store of value function.  Privatization is required because the trust between recipients and their governments has broken down.  Chile (1981), Columbia (1993), Peru (1993), Mexico (1997), Bolivia (1997), El Salvador (1998) and Kazakhstan (1998)  have the least future demographic problems, are not developed countries, and have had the largest reforms.[1]  The expected retirement benefits in these countries are now derived from the income produced by an asset portfolio in individual accounts.

The most moderate reforms have happened in countries with high per capita incomes and severe demographic problems.  These countries include Switzerland (1985), the United Kingdom (1986), Denmark (1990), Australia (1992), Argentina (1994), China (1995), Uruguay (1996), Hungary (1998), Sweden (1998) and Poland (1999).  These developed countries have adopted systems that blend defined contribution accounts with a defined benefit.  Germany and Japan have serious demographic problems.  They are also highly developed countries.  They—like the United States—have passed minor reforms.  These countries have less suspicion that their government will not provide secure retirement resources somehow.  Traditional PAYG systems require a “social contract.”  Trust between workers of different generations is higher developed countries than in developing countries.  Trust between households and government is also higher.

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