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AROUND THE WEB
www.nathannewman.org
November 18, 2002
Go GOP social security privatizers!
Read this commentary today by former GOP Congressman Vin Weber from the Wall Street Journal. He's trying to argue that because some GOPers ran on private accounts in Social Security and won, that shows how much popular support there is for SS privatization. But the key phrase in his article is this one:
"They promised to preserve the benefits of all current retirees and those nearing retirement."
Which is a nice promise and when you bullshit the public, you often can get shortterm political gain. But read the sentence again. What is says first is that there is no promise that most working people paying into the social security system will get full benefits.
Second, if you take a big chunk of social security taxes and put them into private accounts, that means you have to use a chunk of income taxes or other general revenue to pay for current retirees.
So here is what social security privatization means for young workers:
(1) Your guaranteed benefits will be slashed and if your personal account goes south in an Enron-style mess, you will be eating cat food in retirement.
(2)While it sounds like free money, you will actually be paying for those private accounts through increased income or other taxes.
(3)Therefore, the scam is that young workers get to pay double taxation, for present retirees and again to cover the costs of their own accounts.
Cute bait and switch, huh? The GOP gets to sound all progressive and pro-young worker, when they really are screwing them as thoroughly as possible. Paul Krugman has long been skewering Bush over the deceptive math involved in these proposals.
Read the story >
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