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From the category archives: privatization

Social Security Administration Cuts Hurt Americans in Every State

Congress has cut the Social Security Administration’s core operating budget by 10 percent since 2010, after adjusting for inflation. Incredibly, this is happening at the same time a record number of Americans retire each year.  It’s not like the baby boom generation is a surprise.  Our nation built extra schools when they were young and housing as they reached adulthood; however, today’s Congress has chosen to ignore the fiscal realities of their retirement. 

A new report by the Center on Budget and Policy Priorities details the dramatic impact Congress’ SSA budget cuts have on service nationwide:

  • SSA’s staff has shrunk 6 percent nationwide since 2010. Five states — Alaska, Iowa, Kansas, Nebraska, and West Virginia — have lost more than 15 percent of their staff since 2010.
  • Disability Determination Service (DDS) staff, who decide whether applicants’ disabilities are severe enough to qualify for Disability Insurance (DI) or Supplemental Security Income (SSI) has shrunk 14 percent nationwide since 2010.  Seven states — Indiana, Kansas, Louisiana, Mississippi, South Dakota, Tennessee, and Texas — have lost over 20 percent of their DDS staff.
  • Staff shortages have contributed to a record-high disability hearing backlog of over 1 million applicants.
  • SSA has been forced to close 64 field offices since 2010, at least one in nearly every state.

Added to this list, according to a recent audit of the SSA, are reduced hours of service at the remaining offices, the limited mailing of the annual earnings statement, increased wait times, crowded lobbies and limited appointment availability.  

As we reported last month:

Unfortunately, this budget slashing effort is nothing new. “Starve the beast” and shrinking government “down to the size where we can drown it in the bathtub" are long-held goals for Congressional conservatives.  Today’s budget cutters are continuing that decades-long campaign to diminish successful government programs which, since the vast majority of the American public of both parties supports them, can’t be killed outright.

“Cutting staff when SSA is processing historically high claims is irresponsible and a sign that the Republicans who voted for this cut are not interested in providing tax payers with good service regarding SSA,” said Witold Skwierczynski, president of the American Federation of Government Employees SSA Council. “Instead they appear to be creating a scenario that insures the collapse of the program and will enhance the push to privatize it.  If the public loses trust and faith that the federal government can administer SSA, they will look to privatization proposals as an alternative.”...Washington Post, August 9, 2016 

We recommend you read the full CBPP report here to see what’s happening in your state and nationwide. 

Will America's Seniors Vote Against Their Own Self-Interests...Again?

Max Richtman, NCPSSM President/CEOby Max Richtman, NCPSSM President/CEO

As a seniors’ advocate who’s worked on aging policy issues for decades, one of the most common questions I hear during campaign season is, “Why do America’s seniors vote against their own economic self-interests?” or more specifically, “Why have so many older (65+) Americans shifted to the Republican Party, even as it supports cutting the Social Security and Medicare benefits they depend on?” There is no single answer to this political quandary because there is far more at work in our fractured, divisive and polarized political system than simply age demographics. However, there’s no denying we could see American seniors vote against their own self-interests, once again in 2016, unless there’s a major awakening to what that vote means for them economically.

It’s important to start with some historical context. Democratic Presidents, Franklin D. Roosevelt and Lyndon B. Johnson, created Social Security and Medicare and -- for decades -- the party’s strong support among seniors and the middle-class reflected that reality. However, that was then. The erosion of senior support for Democratic candidates has been steady.  In 1993, Democrats had a 12 point advantage over Republicans among senior voters.  Today, that advantage is gone and is instead a deficit.

While the GOP claims this shift proves cutting earned benefits is no longer the “third rail” of American politics, the increasingly populist tone of this 2016 Presidential campaign combined with the nomination of a GOP Presidential candidate who’s promised no cuts certainly belies that assertion. In truth what’s happened in recent years is that conservatives have successfully co-opted the Social Security and Medicare political debate by promising Americans they’ll “preserve” and “strengthen” these vital programs on the campaign trail, while actually proposing benefit cuts, Social Security private accounts, or coupon care for seniors in Medicare only after they’re elected. This Orwellian doublespeak isn’t accidental but a well-crafted (and apparently effective) messaging strategy. Donald Trump has now taken that messaging a step further by promising he’ll leave Social Security and Medicare alone, even as he surrounds himself with staff and a Vice Presidential running mate with very different plans. Trump himself supported the privatization of Social Security for more than a decade, calling it a “Ponzi scheme,” but by 2013 he’d done the political calculus and warned conservatives they simply couldn’t win elections that way:

“ ‘As Republicans, if you think you are going to change very substantially for the worse Medicare, Medicaid and Social Security in any substantial way, and at the same time you think you are going to win elections, it just really is not going to happen,’ Mr. Trump said, adding that polls show that tea partyers are among those who don't want their entitlements changed."  Donald Trump, 2013 CPAC speech, Washington Times

You know the Republicans also have to get elected, you do know that. And if you watch Bernie, and if you watch Hillary, they don't only want to not cut, they want to increase Social Security.” Donald Trump, Morning Joe, February 2016

The American people, of all ages and political parties understand we don’t have to destroy Social Security and Medicare to “save” them. The latest survey by the National Academy of Social Insurance shows large majorities of Americans, both Republicans and Democrats, agree on ways to strengthen Social Security, without cutting benefits. 74 percent of Republicans and 88 percent of Democrats agree that “it is critical to preserve Social Security even if it means increasing Social Security taxes paid by working Americans.”  Simply put, the American people are willing to pay more for Social Security.  They understand the growing impact these benefits have on individual lives and on our larger economy.  They know first-hand what America’s retirement crisis looks and feels like.

Retirement USA reports the gap between what Americans need to retire and what they actually have is $7.7 trillion. In fact, about half of households age 55 and older have no retirement savings and a third of current workers aged 55 to 64 are likely to be poor or near-poor in retirement. Unfortunately, the median retirement account balance is a puny $3,000 for all working-age households and $12,000 for near-retirement households. Vanguard reports that 401K balances, for those who do have them, fell a median of 11% last year.  Social Security remains the only stable retirement income for many Americans.

Social Security is also a stabilizing force for the economy.  A new report from the National Committee to Preserve Social Security and Medicare Foundation shows that, in 2014 alone, Social Security delivered a $1.6 trillion fiscal boost nationwide as benefits were spent and cycled through the economy.  Unfortunately, Social Security’s economic contributions to communities, counties, and states continue to be misunderstood and often ignored in Washington’s fiscal debates. This election could change that.

The party that created Social Security and Medicare has an opportunity to regain lost ground by drawing a clear line in the sand in defense of the core American values of hard work, fairness and compassion embodied in our nation’s most successful programs – Social Security and Medicare. The Democrat’s 2016 platform is the strongest statement on strengthening Social Security seen in decades.  By pledging to fight efforts to “cut, privatize or weaken” Social Security, supporting expansion of the program, lifting the payroll tax and exploring a new COLA formula for seniors, the Democrats have tackled head-on the critical challenges facing millions of average Americans. Conversely, the Republican 2016 platform says benefit cuts must be considered, raising revenue rejected and privatization (the “power of the markets”) preferred. It’s no wonder Donald Trump has been running noticeably silent on Social Security and Medicare this summer, given the Republican Party’s clear rejection of his Social Security and Medicare campaign promises.

Senior turnout will play a huge role in November’s elections which means Democrats must continue to say what they mean, and mean what they say in a full-throated defense against attacks to America’s most effective health and retirement security programs.  Senior voters must also remain vigilant and demand more from candidates than empty promises and political double-speak, otherwise they may cast yet another vote against their own economic self-interests and end up with the biggest case of buyers’ remorse in American political history. 

Two Party Platforms –Two Starkly Different Views on Social Security

The Democratic Platform released today clearly shows that the differences between how the Democratic and Republican parties will approach the future of Social Security couldn’t be starker. The GOP platform promises to consider all benefit cut options, refuses to lift the payroll tax cap and suggests sending Americans’ earned benefits to Wall Street through privatization. The Democratic Party platform, on the other hand, offers the strongest statement on strengthening Social Security seen in decades.  By pledging to fight efforts to “cut, privatize or weaken” Social Security, supporting expansion of the program, lifting the payroll tax and exploring a new COLA formula for seniors, the Democrats have tackled head-on the critical challenges facing millions of average Americans. 

“For too long, many in Washington have ignored the retirement crisis facing Americans nationwide.  The Democratic Party’s platform acknowledges what average Americans and their families understand first-hand – Social Security is an economic lifeline to millions which should be improved. Boosting Social Security’s benefits to provide economic security while also extending the program’s solvency can be done at the same time.  The Democrats get that.

The National Committee proudly worked closely with the Democratic Platform Committee and DNC Chair Rep. Debbie Wasserman Schultz to ensure efforts to improve the current cost of living allowance (COLA) formula are investigated.  The current formula isn’t measuring seniors’ expenses properly and they’ve seen no increase for too many years, while their expenses (especially health costs) continue to grow.  We need a COLA for the elderly and are happy to see Democrats address that reality in this 2016 platform.”...Max Richtman, NCPSSM President/CEO and Democratic Platform Committee Member

It’s also very telling that while the GOP buried their cuts and privatization plans for Social Security under the Platform’s Government Reform heading, the Democrats addressed Social Security, as they should, as part of their plan to restore economic security for average Americans. That’s been Social Security’s fundamental role for more than 80 years -- providing an economic lifeline impacting the lives of virtually every American family.

A new National Committee to Preserve Social Security and Medicare Foundation report also released today, called Social Security Spotlight, illustrates very clearly the huge economic impact Social Security benefits have in every state and county throughout the nation.  This research can be especially helpful during the 2016 election cycle for voters, journalists, policy makers and campaign staff as the future of Social Security is debated.


Republican Party Platform Promises Social Security Privatization

The newly released Republican Party platform provides the latest (in a growing amount of) evidence showing that no one in the party is willing to play along with Donald Trump’s empty campaign promises that he “won’t touch” Social Security and Medicare.  As the party’s nominee for President, Trump is the GOP’s leader; however, that didn’t stop Republicans from completely ignoring him in the party platform saying all options should be on the table.  That actually translates to meaning cuts only because the GOP still opposes the most popular option -- raising the payroll tax.  You'll also note the oh-so vague push for allowing Wall Street and the "power of the markets" to control your Social Security:  

“Of the many reforms being proposed, all options should be considered to preserve Social Security. As Republicans, we oppose tax increases and believe in the power of markets to create wealth and to help secure the future of our Social Security system.”

More than a decade after President Bush’s failed privatization campaign, it appears Republicans and their newly appointed party leader, Donald Trump, are caught in a time-warp where they remain determined to send Americans’ guaranteed Social Security’s benefits to Wall Street -- regardless of the financial recklessness which nearly destroyed our economy just years ago. The GOP still believes successful poverty-fighting programs like Social Security and Medicare are the true evil in our society and continue to equate these earned benefit programs to welfare.  It’s also important to remember that this missive didn’t happen in a vacuum. It came just days after Donald Trump chose one of Congress’ biggest privatizers, Mike Pence, as his running mate. 

“Mike Pence was one of Congress’ biggest proponents of privatization. He supports cutting Social Security benefits by raising the retirement age, reducing the COLA, means-testing and turning Medicare into “CouponCare.” As he told CNN, ‘I’m an all of the above guy.  I think we need to look at everything that’s on the menu,’ and the record shows he has done just that by supporting every form of Social Security, Medicare and Medicaid benefit cut proposed in the past decade.

The National Committee to Preserve Social Security and Medicare scored Mike Pence at 0% on issues important to seniors during the 2011-2012 Congress since he voted for multiple pieces of legislation that would cut benefits and programs that protect senior’s health and financial security.”...Max Richtman, NCPSSM President/CEO

Before his Pence announcement, Trump also met with House Speaker Paul Ryan and admitted he supports cutting Social Security but he just doesn’t think he can be elected by saying it:

“From a moral standpoint, I believe in it,” Trump told Ryan. “But you also have to get elected. And there’s no way a Republican is going to beat a Democrat when the Republican is saying, ‘We’re going to cut your Social Security’ and the Democrat is saying, ‘We’re going to keep it and give you more.’ ”

Of course, those comments also fit with the message his policy staff delivered to fiscal hawks at the annual Pete Peterson “how to cut middle-class benefits” soiree in May:

“After the administration has been in place, then we will start to take a look at all of the programs, including entitlement programs like Social Security and Medicare. We’ll start taking a hard look at those to start seeing what we can do in a bipartisan way.”

“...I think that whoever [is] the next president is going to have a horrible time in dealing with this, because those entitlements will race to the front of all the economic issues we have in this country.”...Sam Clovis, Trump campaign chief policy advisor.

Trump himself has been noticeably silent on Social Security and Medicare this summer – leaving his staff, running mate and GOP Party members to deliver his message loud and clear:  cutting middle-class benefits, privatizing Social Security and turning Medicare into “Couponcare” remains the Republican Party’s goals if voters will give them the chance.

We’ve compiled a comprehensive timeline of Donald Trump’s evolving positions on Social Security and Medicare. You can see it and many other helpful resources for the 2016 Campaign on our NCPSSM SeniorVote2016 website. 


Mike Pence’s Long History Attacking Social Security & Medicare

GOP Presidential candidate, Donald Trump, has chosen one of Congress’ most aggressive Social Security privatization supporters to serve as his Vice President. Indiana Governor and former Congressman, Mike Pence’s record on issues important to seniors, particularly cutting benefits to Social Security, Medicare and Medicaid couldn’t be worse:

“By choosing Governor Mike Pence as his running mate, presumptive Republican nominee Donald Trump has sent a very clear message to America’s seniors that their priorities will hold little weight in a Trump administration.  During his decade-plus tenure in the U.S. Congress, Mike Pence consistently voted in favor of legislative efforts to cut benefits in Social Security, Medicare and Medicaid. He has a long history of blaming earned benefit programs for America’s economic woes and supporting middle-class benefit cuts to protect tax cuts for the wealthy. Few members of Congress have an anti-seniors voting record as consistently strong as Mike Pence. 

Mike Pence was one of Congress’ biggest proponents of privatization. He supports cutting Social Security benefits by raising the retirement age, reducing the COLA, means-testing and turning Medicare into “CouponCare.” As he told CNN, ‘I’m an all of the above guy.  I think we need to look at everything that’s on the menu,’ and the record shows he has done just that by supporting every form of Social Security, Medicare and Medicaid benefit cut proposed in the past decade. 

The National Committee to Preserve Social Security and Medicare scored Mike Pence at 0% on issues important to seniors during the 2011-2012 Congress since he voted for multiple pieces of legislation that would cut benefits and programs that protect senior’s health and financial security.”...Max Richtman, NCPSSM President/CEO

As leader of the Republican Study Committee, the House’s far-right wing caucus, during the Bush administration, Pence doubled-down on President George Bush’s failed privatization efforts by calling for an even larger private accounts scheme to be implemented sooner, putting Americans at even greater fiscal risk than the President’s doomed plan. The Washington Times reported in 2005:

“The Bush plan allows workers to divert 4 percent of their wages into investment accounts, and to choose from a set of investment strategies. But the conservatives are leaning more toward a plan sponsored by Rep. Paul Ryan, Wisconsin Republican, which would allow diversion of 6 percent of wages.

‘Conservatives want to see personal retirement accounts that have immediate relevance to younger Americans, that they can see the value, and that will require that they be big and that they be implemented in the final bill without delay,’ said Rep. Mike Pence, Indiana Republican and chairman of the 100-member Republican Study Committee (RSC).”

Incredibly, even though Pence was among Congress’ most vocal fiscal hawks, he was willing to use deficit spending to pay for their Social Security privatization scheme but not to improve Social Security’s long-term funding or protect seniors’ benefits:  

“Mr. Pence said conservatives would be willing to accept borrowing money to pay for the transition costs, but “so long as we can achieve the fundamental reform of personal Social Security account for retirement.” He said the RSC will convey those principles to House Republican leaders early next week, and said they believe they have muscle to back up those principles.”

Beyond privatization, Pence’s comments make it clear there isn’t a Social Security, Medicare or Medicaid benefit cut he won’t embrace:

“I think everything has to be on the table...I think it’s absolutely imperative, whether it’s Social Security, Medicare or Medicaid.”

“With regard to entitlements we’re going to have to take some deep cuts in domestic spending.” CNN, 2010

“I was tea party before it was cool.”  Indianapolis Monthly, 2011

On health issues, Pence’s record is just as anti-senior as his Social Security stance. He aggressively opposed the Affordable Care Act (ACA) and fought for its repeal, which would worsen Medicare’s solvency and take away billions in added benefits and cost savings for seniors.  He voted against the creation of a prescription drug benefit (Part D) in Medicare, opposes allowing the re-importation of prescription drugs and allowing Medicare to negotiate for lower drug prices, he supported legislation that would deny non-emergency treatment for lack of a Medicare co-pay, and most importantly supports the GOP/Ryan budget which would destroy Medicare in favor of “Couponcare,” giving seniors a voucher to take shopping for insurance rather than protecting traditional Medicare’s guaranteed coverage.

In spite of his leadership in Congress against the ACA, as Governor he reluctantly acknowledged the healthcare needs of Indiana citizens and adopted Medicaid expansion, yet not without putting the GOP political spin on it.  As Politico reported, Pence incredibly claims the expansion was actually an elimination of Medicaid.

“In fact, a summary of the proposal describes it as a move to “eliminate traditional Medicaid” for non-disabled Hoosiers.

And by adding a requirement that Indiana residents must pay a premium, Pence promised to preserve citizens’ dignity:

“So the Indiana plan will charge small premiums—up to 2 percent of an individual's income—which will make only a tiny impact on the state's balance sheets, but will send a clear message to those layabouts; Pence talked about giving people the "dignity to pay for their own health insurance." (I'm sure that Pence declines to take a government handout in the form of the mortgage interest deduction, because that would undermine his dignity.)...American Prospect

While Donald Trump has promised on the campaign trail that he won’t cut Social Security and Medicare benefits, he continues to surround himself with advisors and now a running-mate with polar opposite intentions.  At the same time, his promise to “not touch” benefits has been noticeably absent in recent campaign appearances.  In fact, his most recent comments to an AARP survey take a very different tone:

“As our demography changes, a prudent administration would begin to examine what changes might be necessary for future generations.”...Donald Trump, AARP, June 27, 2016

That’s why NCPSSM President/CEO, Max Richtman, urges seniors and their families to beware of candidates who make promises on the campaign trail they have no intention of keeping once they get your vote:

"They say actions speak louder than words – and there’s no doubt about it -- Donald Trump’s choice of Mike Pence as his Vice-Presidential running mate speaks volumes to American seniors.”

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