Tag Archives: American Enterprise Institute

Obama “expands” the Social Security Conversation

President Obama’s statement last week that he supports expanding Social Security was indeed a watershed in the discussion of the program’s future. What happens next is not clear, however, not least because “expand” can mean so many things to people of different political persuasions.

We should be strengthening Social Security,” the president declared during an economic speech in Elkhart Indiana. “Not only do we need to strengthen it, it is time we finally made Social Security more generous and increase the benefits so that today’s retirees and future generations get the dignified retirement that they have earned.” Expansion, he said, should be financed by “asking the wealthiest Americans to contribute a little bit more.”

The location was important: Elkhart was the first city Obama visited after assuming the presidency, in the midst of the worst economic downturn since the Depression. Last week’s speech itself was meant to highlight the progress the economy has made since then. In staking out his new position on Social Security, “Obama is getting on board a movement that’s been brewing within the Democratic party for a while now,” write Nancy Altman and Eric Kingson, co-directors of the advocacy group Social Security Works, noting that a host of prominent figures including this year’s presidential candidates Bernie Sanders and Martin O’Malley and even Hillary Clinton (somewhat guardedly) have endorsed the idea and that Sanders and Elizabeth Warren, among others, have proposed action in Congress to expand benefits and pay for them by extending payroll tax to cover higher incomes. Continue reading Obama “expands” the Social Security Conversation

“Octomom” and the racial double standard

Social Security’s right-wing critics like to argue that a program guaranteeing a minimal income in old age undermines the family by discouraging working people from having children—and that the resulting decline in the birthrate undermines Social Security. Yet, the right also likes to vilify people of color who have too many children. Could it be that we’ve got a double standard here?

Remember when Nadya Suleman was always in the news ? Perhaps you remember her by her media epithet: Octomom.

Suleman was the 33-year-old Los Angeles mother of six who, in 2009, gave birth to octuplets after receiving fertility treatments, allegedly to qualify for more government assistance and launch a reality-TV career. Single and unemployed, “Octomom” became the focus of bobble-head media outrage in the early years of the Great Recession, a ready target for pundits looking for a way—any way—to deflect attention from the sins of the Wall Street elite. To the reliably quotable Wall Street Journal columnist Peggy Noonan, Suleman was “dizzy, selfish,” the living symbol of America’s national decline. Her statements that she never meant to give birth to octuplets—plausible though they were—somehow never seemed to convince mainstream journalists in possession of what they thought was a story.

What does all this have to do with Social Security? We’ll get to that shortly. But first, an update on one of the more remarkable media circuses of the past few years.

Continue reading “Octomom” and the racial double standard

Why is “entitlement” such a nasty word?

Since his reelection, President Obama has been talking about “reforming entitlements” every chance he gets –or at least when he’s talking to Republicans. But why – and when – did “entitlement” become such a nasty word?

Since his reelection, the president has been trying hard to have it both ways when it comes to Social Security and Medicare. According to the Huffington Post’s Sabrina Siddiqui, Obama on March 14 assured House Democrats that he won’t “slash” the two programs – moments after a meeting with Senate Republicans at which he reaffirmed his commitment to “reforming” entitlements, including adopting the chained CPI for calculating Social Security and Medicare.

Knowing it was poison to his constituency, Obama had more or less avoided the subject on the campaign trail last year. And as Continue reading Why is “entitlement” such a nasty word?

Cato Premieres Its Latest Horror Show

Jagadeesh Gokhale is back with a new book laying out a fresh doomsday scenario for Social Security. But before dipping into the Cato Institute scholar’s (and Bush appointee to the Social Security Advisory Board) latest research-and-destroy mission, it’s useful to have a look at his past record as a budget analyst and champion of a dubious “present value” accounting measure.

In August 2003, Joe Lieberman, then in the early stages of launching a presidential bid, wrote a letter to Treasury Secretary John Snow in which he accused the administration of “stripping out” from its 2004 budget the findings of an internal Treasury paper that Snow’s predecessor Paul O’Neill had ordered up. Attempting to stake out a position as the toughest of the deficit hawks, Lieberman suggested that “this administration is trying to hide the true nature of our financial obligations from the American people in order to advance its agenda of cutting taxes indiscriminately.”

The paper was written by Gokhale, then at the Cleveland Fed, and Kent Smetters, Continue reading Cato Premieres Its Latest Horror Show