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From the category archives: entitlement reform

2016 Determines the Future of Social Security & Medicare

There is a lot at stake in the 2016 election because the differences between candidates’ plans for ‪#‎SocialSecurity‬‪#‎Medicare‬ and Medicaid are stark.  Seniors' votes will make a difference so please help us advocate, educate and keep the candidates accountable for their positions on America's most successful programs!

They Never Learn. The GOP Threatens Cut Social Security & Medicare or Else

Senate Majority Leader Mitch McConnell has started budget and debt ceiling talks with the GOP’s favorite attack...cut Social Security or Medicare or else ______ (fill in the blank to fit the debate of the day).  This time it’s... “or else we’ll shutdown the government.”

“Mitch McConnell privately wants the White House to pay this price to enact a major budget deal: Significant changes to Social Security and Medicare in exchange for raising the debt ceiling and funding the government.”  CNN

“Chained CPI is off the table as an offset to pay for higher spending caps. One person with knowledge of the talks said Senate Majority Leader Mitch McConnell opened the negotiation with a proposal to offset higher discretionary spending with chained CPI and Medicare means testing, though McConnell's office would not confirm that he made the request.” CQ News

“In a direct rebuke to his Republican counterpart, Senate Minority Leader Harry Reid (D-Nev.) said Tuesday that raising the debt limit is non-negotiable. Speaking hours before the first Democratic presidential debate, which is being held in his home state, Reid encouraged President Barack Obama not to enter into talks with congressional Republicans, who have plotted to use the debt limit as a means of extracting spending cuts.”  Huffington Post

You’ll also note there is no talk of reversing trillions of dollars in tax breaks and loopholes for large corporations shipping jobs overseas.  No talk of the billions more in tax breaks given to the ultra-wealthy.   Instead, Republican leaders want to cut the whopping $1,291 average monthly Social Security retirement benefit.  A benefit Americans have paid for throughout their working lives. 

The debt limit expires November 5th so there’s not much time to make it clear...once again...that the American people are paying attention and you won’t stand by and watch as Social Security is used as a political bargaining chip.  Make that call!

The GOP Debate...Slim Pickin’s If You Care About Social Security or Medicare or Virtually Any Other Issue Impacting Average Families

Now that America’s Presidential Debates are designed as entertainment television (as described here by CNN Moderator Jake Tapper) and not an actual debate of the issues voters need to hear about before choosing our next’s probably no surprise that Social Security & Medicare just aren’t considered sexy enough for any serious attention. 

In response to the only question asked last night about the nation’s most successful government programs, Donald Trump told the audience he’ll give up his benefits because he doesn’t need them (Ben Carson made the same suggestion earlier in the week).  So, you have to wonder -- is asking rich people to voluntarily give up their Social Security and Medicare now considered a serious GOP policy plan? Maybe every American millionaire will be asked to email 10 of their country club friends to pledge to give up their benefits, too?  No one is forced to apply for their Social Security now, so how is this even vaguely a solution? 

Meanwhile, since Governor Chris Christie staked his campaign on the idea of being tough on “entitlements” he continued to push his plan to slash benefits by ignoring actuarial reports from every legitimate government entity including the Congressional Budget Office and the Social Security actuary. Christie claimed last night that Social Security will be insolvent in just “7 to 8 years.”

The truth is the Social Security Trust fund will be depleted in two decades and only pay 79% at that point, if Congress does absolutely nothing.  But that’s not the same as Social Security is “broke” and Social Security is “insolvent.”  At the bare minimum, a President of the United States needs to understand the difference. 

Finally, while this didn’t happen in last night’s debate, Carly Fiorina recently offered a truly unique approach to her plans for Social Security and Medicare as’s a secret until I’m in the White House. 

"I am not prepared to go to the American people and talk to them about how we're going to reform Social Security and Medicare,’ Fiorina told CNBC's John Harwood in an interview published Wednesday, ‘until I can demonstrate to them that the government can execute with excellence, perform its responsibilities with excellence, serve the people who pay for it with excellence.’

Harwood was impressed. ‘That is a dodge worthy of a very good politician,’ he told the former Hewlett-Packard CEO. 

Fiorina denied that she had just dodged. ‘I am deadly serious,’ she said.” 

No doubt she’s deadly serious about not addressing the issue now or talking about her already expressed plans to cut Social Security offered during the California Senate campaign in 2010:

"I'm prepared to look at any and all ideas without stating at this point which I would favor and which I would not. We have to have a comprehensive look at entitlement reform, including Social Security reform."  Carly Fiorina, 2010

“... I believe that to deal with entitlement reform, which we must deal with, we ought to put every possible solution up on the table...”  Carly Fiorina, Fox News 2010

So basically, once President Fiorina is confident she’s an excellent President then she’ll tell you about her plans to cut Social Security and Medicare benefits. 

But only then...

What If Your Social Security Was Riding the Wall Street Roller Coaster too?

Today might be a good day for a financial exercise...

Chances are if your retirement savings are in a 401K or countless other market-based products, you may have seen what the latest Wall Street downturn has done to your balance. If not, go ahead and bite the bullet and check it.  After you get over the shock, check your Social Securitystatement.  Take some solace in knowing that while your market savings have taken a hit, the good news is your estimated Social Security benefit today is the same it was on Wednesday. 

That’s why Social Security exists.  That’s why it works.  That’s why it’s beyond reason that so many in the GOP still support sending your Social Security to Wall Street and destroying the stable income protection (it’s not an investment) Social Security provides. 

“In June, presidential candidate Jeb Bush said that he thinks the next president will have to try to privatize Social Security. Others have gotten behind the idea as well: Sen. Rand Paul (R-KY) drafted a plan in 2013 that included partial privatization, and Sen. Ted Cruz (R-TX) is in favor of using private accounts. Rep. Paul Ryan (R-WI) has included privatization in his budget blueprints.

The market drop, and ones before, expose the dangers of such a plan, which usually entails diverting some or all of the money workers contribute to Social Security through their paychecks into private investment accounts.” Think Progress

Governor Mike Huckabee also prefers a privatized Social Security system but says he opposes benefit cuts.  The problem is benefits would have to be cut to create private accountsJohn Kasich has also supported privatizing Social Security.

No doubt, conservatives will remind us that over the long-term the market has been good to us.  Maybe so, but as previous market collapses have shown, retirees don’t have the benefit of the long-term to rebuild savings now lost.  

“Look at successive 45-year periods, as I did for my 2005 book, "The Plot Against Social Security," and you find huge variability. The average worker who invested $1,000 every year in the stock market starting at age 20 in 1954 would have $470,000 when he or she was ready to retire in 1998. But the worker who started just five years later, in 1959, would end up with only $234,000 at age 65--half as much--despite investing exactly the same sum over the same time span. 

Market crashes could destroy a nest egg that took a lifetime to nurture. A near-retiree with, say, a half-million in stock in 2007 had just over $300,000 a year later, following a 37.22% plunge in 2008. Those who held fast managed to recover their losses, but that took five and a half years--and what about those who didn't have the luxury of time?”...Michael Hiltzik, Los Angeles Times

Trading Social Security’s guaranteed benefit for a ride on Wall Street makes no sense for Americans who need to be secure in their retirement.  That’s true whether the market is up or down.  

Jeb Bush Says He'll End Medicare

We suppose we should at least give Jeb Bush brownie points for honesty since he was actually caught saying out loud what the GOP has been trying to do Medicare for years, without actually admitting it.

MSNBC first reported on Jeb Bush's comments made to a room full of Koch Brothers supporters:

"We need to make sure we fulfill the commitment to people that have already received the benefits, that are receiving the benefits," Bush said. "But we need to figure out a way to phase out this program for others and move to a new system that allows them to have something, because they're not going to have anything."

Promising to protect current beneficiaries (because according to the standard GOP meme “greedy geezers” only care about their own Social Security and Medicare benefits not what’s left for their kids or grandkids) is a tried and true GOP strategy. Attempting to destroy Medicare piece by piece is also a strategy we’ve already seen tried by conservatives in Congress.  So it’s likely Bush didn’t even realize he was making news.  Vox described it best this way:

“For years now, Republicans in Congress have been unified around a plan to promise continued Medicare benefits to everyone over the age of 55 while phasing out the program for everyone else. This is the famous — or perhaps infamous — Paul Ryan plan for Medicare. But denying that this is what their plan amounts to has been an important part of the political strategy for getting it done. Except Jeb Bush messed up, and in a talk at an Americans for Prosperity event Wednesday night he said that America needs to "phase out" Medicare.

His argument is that once Medicare is phased out, the GOP can offer the 54-and-under set "something," because the alternative will be to get "nothing."

Recall that back in 2011, the GOP whined endlessly about allegations that they wanted to end Medicare, and PolitiFact dubbed the idea that the GOP wants to end Medicare their "lie of the year."

But as Jeb Bush reveals here, it was never a lie of any sort. Conservatives' preferred answer to the challenge of paying for Medicare in the future is to scrap the program, and that idea has gained wider and wider currency in GOP circles in recent years.”

Bush’s comments were chock-full of other seriously flawed assumptions which MSNBC also breaks down including:

  • The “left” hasn’t done anything to help Medicare – Uhh, how about this week’s Trustees Report which confirms (yet again) an additional 13 years of Medicare solvency thanks to healthcare reform (which the GOP would repeal). 
  • Going door-to-door has shown him the American people support phasing out benefits - We’re not sure what doors Bush is knocking on but there’s not a national poll anywhere (legitimate or otherwise) which shows Americans support ending Medicare.   

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