Tag Archives: Alan Simpson

The Myth of the Greedy Geezer

The following appeared today as an opinion piece on Al Jazeera English.

Old people are becoming everyone’s favourite scapegoat for America’s economic woes. Among the growing ranks of self-styled deficit hawks, Social Security and
Medicare are depicted as an intolerable burden to the nation’s already crippled
economy, which can only be saved through massive cuts to these so-called old-age entitlement programs. To advance this agenda, proponents of entitlement cuts have attacked not only the programs themselves, but the people who benefit from them – the selfish old folks like myself, who insist upon bankrupting the
country for the sake of their own costly health care and retirement income.

We in the over-65 set have become the present-day equivalent of Reagan’s notorious “welfare queens,” supposedly living high on the hog at the expense of the taxpayer. According to what I call the Myth of the Greedy Geezer, we lucky
oldsters spend our time lolling about in lush retirement villas, racing our golf
carts to under-priced early-bird dinner specials and toasting our good fortune
with cans of Ensure – all at the expense of struggling young people, who will
never enjoy such pleasures since the entitlement “Ponzi scheme” will collapse
long before they are old.

The fervour for entitlement-cutting remains strongest among conservatives, but these days, even President Obama is taking part, promoting the recommendations of his National Commission on Fiscal Responsibility and Reform, commonly known as the Deficit Commission (and to its opponents as the Cat food Commission, since that’s what old people will be eating when the Commission finishes its work).

The appointed chair of the Deficit Commission, Alan Simpson, is one of the primary promulgators of the Myth of the Greedy Geezer. A former Republican senator from Wyoming who is known for his colourful turns of phrase, Simpson insists that “This country is gonna go to the bow-wows unless we deal with entitlements, Social Security and Medicare.” The majority of the people opposed to such cuts, he claims, are “These old cats 70 and 80 years old who are not
affected in one whiff. People who live in gated communities and drive their
Lexus to the Perkins restaurant to get the AARP discount. This is madness.”…

Read the rest at Al Jazeera.

Obama’s Fiscal Commission Prepares to Carve Its Turkey

The dread report of the White House’s National Commission on Fiscal Responsibility and Reform is due out this week.  One of the Commission’s co-chairs, the putative Democrat and consummate wheeler-dealer Erskine Bowles, has been up on the Hill flogging their plan to reduce the debt by cutting the country’s already skimpy programs for the old, the sick, and the poor. His partner, motor-mouth Republican Alan Simpson, continues his ranting and ravings against the greedy geezers who want to sink the entitlement-cutting ship before it’s launched. Both of them have taken to boo-hooing because no one appreciates all the work they are doing to save the nation from certain fiscal doom, and nobody is willing to pitch in to meet this noble goal.

Fiscal Commission's Plan: Starve the Old to Stuff the Rich

Personally, I’m still waiting to hear how Wall Street is going to pitch in and do its part–or the people with high six-figure incomes who claim they still aren’t rich enough to give up their tax cuts. Or, for that matter, Bowles and Simpson themselves, who retired on fat  pensions and don’t have a financial care in the world.  Since none of this is likely to happen any time soon, we’d better take a good hard look at what these sanctimonious old coots have come up with.

We already know a lot about what to expect from the Fiscal Commission Plan, since the co-chairs released their own preliminary proposals (as yet unapproved by the 18-member Commission) earlier this month. According to people with access to the Commission’s thinking, they seem to think their best bet is to achieve consensus on a proposal to change the way Social Security’s annual cost of living increases (COLAs) are calculated. What seems like a mere accounting adjustment would, in reality, severely affect benefits over time. The National Committee to Preserve Social Security and Medicare explains the impact of this scheme:

This proposal will affect current and future beneficiaries uniformly.  The impact would occur after benefits are initiated, with each COLA, as the yearly increase in benefits would be slightly lower than would have been the case without the change.  The impact would be greater with each successive COLA.  For example, the Social Security benefits paid to someone collecting benefits for 10 years would be about 3 percent lower, on average, if the chained-CPI was used for the COLA instead of the current CPI-W.  After 20 years this reduction would reach 6 percent and 9 percent after 30 years.

This is is bad enough–especially since old people’s cost of living increases faster than the national average because of exploding health care costs. But of course, there’s more, in the form of a plan that would raise the retirement age to 67 and eventually 69. Working until you drop dead or  literally are forced out of the labor market is utilitarian nineteenth-century thinking. But at that time, at least there was an expanding need for workers in a burgeoning industrial capitalist economy. The one big profitable industry surviving in America today is so-called financial services, which consists of a small number of overpaid people passing money back and forth amongst themselves. They certainly don’t need any more workers, and if they do, they’ll get them in India. Vermont Senator Bernie Sanders said of the idea that it was not only “reprehensible,” but “also totally impractical. As they compete for jobs with 25-year-olds, many older workers will go unemployed and have virtually no income.”

There was no such ringing takedown of the plan, of course, from Senate Majority Leader Harry Reid, whose mealy-mouthed statement tells us what we can expect from our Democratic Senate. “I thank the leaders of the bipartisan debt commission for their work,” Reid said. “While I don’t agree with every one of their recommendations, what they have provided is a starting point for this important discussion. I look forward to the full commission’s recommendations and to working with my colleagues on both sides of the aisle to address this important issue.”

Nancy Pelosi had somewhat stronger words, calling the preliminary proposals “simply unacceptable”–but then, she’s nothing but the soon-to-be-ex-Speaker of the House. In fact, co-chair Simpson has been predicting, with something close to glee, the “bloodbath” that’s likely to ensue next spring, when the new Republican House refuses to extend the debt limit and threatens to send the nation into default “unless we give ’em a piece of meat, real meat, off of this package.”

When all is said and done, there’s pretty much no way this so-called debate will end up without most of us, old and young alike, getting screwed. An already stingy program that ought to be expanded to cover elders as their numbers grow instead  is going  to be reduced, and the only question is how and by how much. It makes no sense, but it may well have political traction because the pols can sell it as an attack on rich grannies–“the greediest generation” as Simpson calls the old–while the young are hoodwinked into thinking it’s good for them. And since its full effect will take  years to be felt, the current crop of opportunistic politicians will be long gone into splendid retirement by the time these young people realize how wrong they are. Alan Simpson was frank about this fact in the Washington Post on Friday, using another one of his nauseatingly folksy metaphors:

 It takes six to eight years to pass a major piece of legislation. . . . On a piece of legislation that you know is going to go somewhere someday, you want to get a horse on the track. That might be not much. Then the next session you want to put a blanket on the horse. Nobody’s paying attention then. Then you put some silks on the horse. Then you clean the outfield and the infield. And then you put a jockey on the horse in the sixth year, and you can win it. Because the toughest part is to do the initial thing, and so it’s usually so watered down, it’s just gum, you could gum it. Then you begin to build it the next year, the next year and then you get it done. That’s what I see.

And just in case you thought it couldn’t get any worse, consider this warning from Allan Sloan, Fortune’s senior editor, who wrote an op-ed in the the Washington Post on Thanksgiving day:

[P]rivatizing Social Security, slaughtered when George W. Bush proposed it five years ago, seems about to rear its foul head again. You’d think that the stock market’s stomach-churning gyrations – two 50 percent-plus drops in just over a decade – would have shown conclusively the folly of retirees’ having to bet their eating money on the market. But you’d be wrong. Stocks have been rising the past 18 months, and you can bet that we’ll see a privatization push from newly elected congressmen and senators who made it a campaign issue.

Why is privatizing Social Security such a turkey? Because retirees shouldn’t have to depend on the market’s vagaries for survival money. More than half of married couples older than 65 and 72 percent of singles get more than half of their income from Social Security, according to the Social Security Administration. For 20 percent of 65-and-older couples and 41 percent of singles, Social Security is 90 percent or more of their income. That isn’t projected to change.

Arrayed against these grim prospects are a small group in Congress, led in the Senate by Bernie Sanders and Sheldon Whitehouse of Rhode Island, and in the House by Jan Schakowsky of Illinois. Says Shakowsky

Social Security has nothing to do with the deficit. Addressing the Social Security issue as part of the deficit question is like attacking Iraq to retaliate for the 9/11 attacks – there is simply no relationship between the two and attempting to conflate them does a grave disservice to America’s seniors. Taking money from Social Security retirees whose average total income is $18,000 per year and average benefit is $14,000 ($12,000 for women) is simply wrong. It places them at fiscal risk and hurts the economy because they will be unable to purchase the goods they need.  Americans in poll after poll have indicated their opposition to benefit cuts – particularly at a time when Wall Street bankers are making record bonuses.’

Schakwosky has her own plan, which will be an antidote to whatever the Fiscal Commission comes up with. But her ideas are unlikely to make any headway in the lame duck Congress or with the Democratic leadership, as they wait, already on bended knee, for the coming of the Republicans.

Behind the Battle Over Social Security

As the midterm elections near, the future of the Social Security system has become a hot-button issue–and a confusing one. A number of Republican politicians have hit on it as yet another way to undermine Obama and the Democratic leadership, by criticizing their supposed fiscal irresponsibility. Some must also see victory at hand in the conservatives’ longstanding battle to destroy one of the most hated remnants of the New Deal. These include the GOP’s chief architect of change Paul Ryan,who wants to turn Medicare into a voucher program and privatize Social Security. He is backed up by House minority leader John Boehner, who, if the Republicans take the House, could become the next speaker. 

Some Democrats have risen to defend the best–and most solvent–anti-poverty program the nation has ever known. But for other Democrats–including those in the White House–the response is more triangulation. It was Obama who set in motion the Fiscal Commission, supposedly to study the deficit but in fact, as just about everyone in Washington knows, to pare entitlements, cutting Medicare and Social Security. Originally, this commission was thought ready to propose lifting the limit at which one could draw Social Security from 62 to 67. Now scuttlebutt  is that the entry age should be 70. Our supposedly “socialist” president has placed the country’s premier social program in the hands of Alan Simpson, a Republican crank who views old people as the new welfare queens. 

It’s not surprising, then, that a lot of older voters don’t know what to make of it. A piece in Sunday’s New York Times reported on “tales of political burnout and withdrawal among older voters” in one swing county in Colorado. Many in this consituency, which can usually be counted upon to vote in large numbers, seemed to be withdrawing altogether from the fray. Others were preparing to shoot themselves in the foot:

Bill Benton, 79, a lifelong Colorado resident who described himself as an Eisenhower Republican, supports Mr. Buck and believes that his comments suggesting that the private sector could perhaps do a better job with Social Security were “just talk.” Mr. Buck has said that despite his comments, he would not support privatizing the retirement program. “I like him, but he says some dumb things,” Mr. Benton said.

With all the rhetoric flying out of Washington, it’s likely that some older people have come to view the whole topic of Social Security as the centerpiece in a Washington charade of boasts and lies, another turn in the game of smoke and mirrors, much in the manner of the shouting match over health care. It turns the stomach, feeds the hate against Washington, and sends people fleeing to escape a nightmare they can’t understand–sometimes, it appears, right into the arms of the Tea Party.

And in fact, people who suspect a smoke-and-mirrors game are pretty much on the money. Social Security’s elevation to a central political debate is tied to another hot-button issue: The future of the Bush tax cuts. Those tax cuts, which benefit the very rich—the people who pump cash into a candidate’s campaign—are set to expire next year. “In 2010, when all the Bush tax cuts are finally phased in, a staggering 52.5 percent of the benefits will go to the richest 5 percent of taxpayers,” according to Citizens for Tax Justice, the Washington-based  public interest group that follows and analyzes tax policy.

The impact of these cuts on the national treasury–and the deficit–cannot be overestimated: “The tax legislation enacted under President George W. Bush from 2001 through 2006 will cost $2.48 trillion over the 2001-2010 period,” Citizens for Tax Justice reports. “This includes the revenue loss of $2.11 trillion that resultsdirectly from the Bush tax cuts as well as the $379 billion in additional interest.’’

Obama has declared his opposition to extending the tax cuts for the highest income brackets. But some conservative Democrats will have other ideas. And if the White House’s resolve fails, as it often does, there’s another deficit-cutting alternative at hand in Medicare and Social Security. It’s a lot easier for politicians to talk about paring down entitlements than it is to attack the rich on whose largesse they depend.

Triangulating Social Security

While on vacation for the past two weeks, I didn’t read the papers or look at TV, so I was mercifully unaware of the latest bon mot from one of the leading politcal pricks of the summer, former Senator Alan Simpson, who co-chairs Obama’s entitlement-cutting “deficit commission.” Just in case you haven’t heard about it, here’s an account from CBS:

In a letter responding to criticisms against him from a group representing older women, former Wyoming Sen. Alan Simpson wrote that he has “spent many years in public life trying to stabilize” Social Security. However, he wrote, “Yes, I’ve made some plenty smart cracks about people on Social Security who milk it to the last degree. You know ’em too. It’s the same with any system in America. We’ve reached a point now where it’s like a milk cow with 310 million tits!”

Simpson made his reply in response to an article on the Huffington Post penned by Ashley Carson, executive director of the National Older Women’s League (OWL). Carson had said, “Mr. Simpson continues to paint the picture that everyone receiving Social Security benefits is living the high life–driving luxury cars, dining out and living in gated communities.” She pointed out the average Social Security beneficiary gets $13,900 annually, relegating many older women to poverty–or, to put it more bluntly, throwing them into the proverbial poor house to rot out the rest of their lives.

Simpson is simply spouting right-wing crap. And I can understand the Clintonesque Democratic Leadership Council types, led by Erskine Bowles, the other co-chair of Obama’s deficit commission, wanting to play games with the right-wingers as they try to get their usual triangulation model set up. But how Obama thinks he can win votes out of the deficit commission charade is way over my head.

Up to now, the general idea has been obvious: Set up a show commission that spends billions of dollars going through the motions of investigation and study–LOL–while busily cutting deals among Republicans and conservative Dems to pare down Social Security and Medicare. These clever people then plan to announce that they can solve the deficit problem by slightly trimming Social Security and rearranging Medicare, but not so much as to hurt today’s “seniors.” God forbid! The deal is, however, to start making serious cuts as time goes on, after the current crop of do-nothing pols have long ago retired with their great pensions, splendid medical care, into profitable jobs lobbying the Congress for more cuts.

Now, nobody ever said the politicians in Washington are very swift. But you’d think that just by reading the basic demographic swing in the nation, they could see that with the tide greatly changing so that older people–not younger people–have the voting power to run the country. What they are actually doing is to doom their successors to a ruinous economics, not to mention a nowhere political future. But then, I always forget, the single greatest motivating force among the members of Congress–and I guess, sad to say, the Obama crowd, is a matter of simple greed in their own endless quest to stay in power.

This time, though, they may have miscalculated, especially by appointing an a-hole like Simpson, whose colorful pronouncements expose the deficit commission scam for the stealth attack that it is. Social Security is known as the third rail of politics, and we can at least hope that it’s lost none of its juice.

Obama’s Cat Food Commission, Alan Greenspan, and the Dancing Grannies for Medicare

President Obama’s Deficit Commission is all smoke and mirrors. Its members are making a big show of laboring over “painful” choices and considering all options in their quest to bring down the deficit. But  inside the Beltway everyone knows what’s going to happen: The commission will reduce the deficit on the backs of the old and the poor, through cuts to Social Security, Medicare, and Medicaid. Some opponents have taken to calling it the Cat Food Commission, since that’s what it’s victims will be forced to eat once the commission gets done slashing away at their modest entitlements.

In fact, the true intent of the Deficit Commission was evident before it was even formed. That intent was only driven home when Obama appointed as its co-chair Alan Simpson, who is well known for voicing, in the most colorful terms, what Paul Krugman calls the “zombie lie” that old-age entitlements will soon bankrupt the country.

So why the big show? Because neither Obama nor the Congress wants to get caught cutting Social Security and Medicare in public, certainly not before the November elections. (Medicaid will be cut as well, but politicians tend not to worry so much about poor people, since they don’t go to the polls in the numbers we geezers do.) So instead, they are foisting off this unpleasant task onto the Deficit Commission, showing what the lawyers call “due diligence,” sucking their thumbs and pretending to study how to cut the deficit. They’ve got $1 billion in walk-around money to pay for propaganda so the PR industry ought to be plenty happy. So too, should billionaire Pete Peterson, as he and his foundation lackeys push forward towards a victory in their longstanding attack on entitlements.

Quite frankly, if the Republican Right could get itself together and shove the Tea Party nuts back into their cave–as Reagan did with the crackpots hanging around him–they too could reap the benefits of the Cat Food Commission’s work. Ever since the New Deal, the Right has been kicking and screaming about Social Security. Things just got worse in the 1960s with Medicare and Medicaid. And now, thanks to our supposedly “socialist” president, they are within a few inches of cutting a nice hefty hunk out of the largest social programs this nation has ever known.

As one Capital Hill player recently wrote me: “Unfortunately, everyone in a position of power up here knows full-well the connection between Peterson, the commission and Simpson.  They either don’t care or are too afraid to say anything because they’ll appear ‘soft on deficits.’  It’s no different than their Iraq war votes…they believe they’ll appear ‘weak’ if they don’t jump on the bandwagon. The Democrats, (with the exception of Nancy Pelosi and only a handful of others–including commission member Jan Schakowsky), have no intention of taking on Peterson’s crew.  Congress may be  a lost cause on this issue, if the voters don’t get pissed off about the Commission fast.” 

Will enough voters get pissed off enough, soon enough to slow down the anti-entitlement juggernaut? It’s a long shot, at this point. There are signs of something like a small movement growing around the Cat Food Commission idea, and scattered protests (among them a demonstration dubbed the “Dancing Grannies for Medicare.”)

But it’s going to take a lot to waylay the likely course of future events:  The Cat Food Commission will undoubtedly recommend, and a lame duck Congress will pass, legislation that looks fairly innocuous: trimming Social Security a bit, maybe by upping the age by a few years, and cutting a little from Medicare–none of it affecting anyone who is over 65 right now. That will enable the politicians now in office to look like they are protecting seniors and fending off any drastic cuts, while at the same time appearing “tough” on the deficit. But the legislation, in the usual Washington mode, will gradually widen as the years go by, so that by the time this bunch of pols are retired (on their fat pensions) and out of the fray, the new rules will be eating  into entitlements in a big way.

The other side of this Faustian bargain would appear to be Congress passing some tax increases. “In setting up his National Commission on Fiscal Responsibility and Reform,” William Greider recently wrote in The Nation, “Barack Obama is again playing coy in public, but his intentions are widely understood among Washington insiders.” As Greider puts it, “The president intends to offer Social Security as a sacrificial lamb to entice conservative deficit hawks into a grand bipartisan compromise in which Democrats agree to cut Social Security benefits for future retirees while Republicans accede to significant tax increases to reduce government red ink.”

It remains to be seen how “significant” those tax increases actually turn out to be. But even former Federal Reserve Chair Alan Greenspan seems to be on board with this general plan. Greenspan’s credentials include chairing the first major entitlement-cutting commission back in the 1980s, as well as promoting the Bush-era tax cuts that helped the deficit grow to its current proportions. He still says that reductions to Medicare benefits are necessary–but in a recent interview in the New York Times, Greenspan also says that he now wants to remove all the Bush tax cuts. Seeing as it comes from the champion of “let them eat cake” economics, this pronouncement must be seen as predictor of how conservatives could end up voting. In short, the old and the poor will have to eat cat food, but the rich might kick in a few crumbs as well.

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Petition to Stop the Entitlement-Cutting “Catfood Commission”

Readers of Unsilent Generation may be interested in a new online petition directed at members of Congress, concerning the work of the National Commission on Fiscal Responsibility of Reform, which I’ve written about here many times before. Here is the introduction to the petition, which was started by Alternet. You can read the text of the petition, and sign it, here at Change.org

Right-Wing “Deficit Hawks” and their enablers are on a march to destroy the social safety net we built for our seniors and retirees. Shockingly, some of the most notorious advocates are actually in charge of the presidential commission that will soon determine the future of Social Security and Medicare. We need to stop them in their tracks! Join us in calling on Congress to Stop the Catfood Commission.

The National Commission on Fiscal Responsibility and Reform has been dubbed by progressives the “Catfood Commission” because its goal appears to be cutting benefits so drastically that retirees will only be able to afford to eat pet food. It’s hard to tell exactly what the commission is planning because its meetings are closed to the public and the press. Based on past statements and the background of its members the proposals are likely to include raising the retirement age to 70, turning large portions of Social Security over to Wall Street, and cutting Medicare benefits.

The commission’s co-chairman Alan Simpson, a former Republican senator from Wyoming, has stated he believes the founders of the Social Security program never expected anyone to actually live to 65 and collect. “People just died,” he has said. “Social Security was never [for] retirement.” Erskine Bowles, the other co-chairman, negotiated a secret but ultimately unsuccessful deal between Bill Clinton and Newt Gingrich to cut Social Security benefits. Any chances that the commission would make cuts to the US defense budget in its pursuit of fiscal responsibility seem slim owing to the fact that the CEO of Honeywell, a major defense contractor, is a member of the panel.

We can’t sit back and count on a Democratic-controlled Congress to protect our social safety net. Just a day before the July 4th holiday weekend, the House of Representatives passed a measure that would guarantee an up-or-down vote on the Catfood Commission’s recommendations in the current session of Congress if they pass the Senate. With this measure House Speaker Nancy Pelosi relinquished her power to prevent the vote from coming to the floor.

Your representatives need to hear from you NOW.  Let’s stop the Catfood Commission from raiding the Social Security trust fund and slashing medical benefits for current and future retirees.

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Reader Response: How About Going After the Real “Fat Cats” Before Attacking Elders?

This morning I received a comment from Elizabeth Rogers in response to my posts about Senator Alan Simpson, the octagenarian elder-basher who co-chairs Obama’s Deficit Commission. Simpson has been making news with his comments about “fat cat” geezers who cling to their government handouts while younger generations suffer. I want to share it with everyone because Ms. Rogers gets to the heart of the whole entitlements question in a simple and direct way.

There’s a good chance this commission will end up proposing cuts in Medicare, along with steps towards privatizing  parts of Social Security. These have been heartbeat issues for conservatives running all the way back to the creation of Social Security in the New Deal, and has only grown since Congress created Medicare in the 1960s, after some arm twisting by LBJ. Doing away with these entitlement programs has been a cherished conservative idea, right alongside ridding the nation of  ties to the UN, ending the income tax, and abolishing the Department of Education, to name but a few.

In addition to destroying the social safety net, the war on entitlements serves to distract attention from the real causes of the inflated deficit. Elizabeth Rogers suggests some other sources of deficit-reduction that our politicians might want to consider before they start dipping into our Social Security checks. 

Retired Senator Simpson must travel in a very different crowd of older Americans than my husband and I do! We live in a compact 2 BR condo in the Pacific Northwest. Yes, there’s a gate, but our complex is very definitely occupied by middle class workers and retirees like us. At 73 I’m still working part time and thank my lucky stars that I have a job. My husband, now 80, worked until four years ago (he started working at age 14).

Lexuses? I don’t think so. Our small SUVs are over 10 years old and we hope they last as long as we do. Fat cats? Not exactly, although we do have an overweight feline in our family.

Seriously, although we have some additional resources, Social Security is a significant source of income for us, as I suspect it is for most recipients. That said, we get that the nation’s huge budget deficit is a serious problem.

We’d be willing to pay more taxes if the amount is fair and reasonable, but FIRST, how about: (1) pursuing the offshore bank accounts of billionaire tax evaders, (2) allowing the Bush tax cuts for the wealthiest 2% of Americans to expire, (3) ending the UNfunded wars in Iraq and Afghanistan that are now costing in the trillions; (4) changing our culture’s views on end-of-life care so that Medicare doesn’t continue to spend huge sums on “heroic” measures to “save” those in their last 6 months of life. I have multiple advance directives in place because I have no desire to fall into the hands of the medical-pharmaceutical complex at the end of my life, but even so, I can’t be certain that I won’t. We need to get real about this issue!

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