Now You See It, And Now You Don’t: Social Security, Medicare, and Medicaid in a Shell Game

In honor of Tax Day

Image by swanksalot via Flickr

Welcome to the carnival. Watch closely . . .

The present attack  on entitlements and “debt” is setting the American people up for a deal from hell, a deal the devil thinks we can’t refuse. Just my opinion.

Here’s the devious strategy:

  1. All-out attack on “entitlements,” vilifying Social Security, Medicare, and Medicaid . . .
  2. Grudging acknowledgment that the financial structure of Social Security is not so bad . . . compared to the evils of Medicare and Medicaid . . .
  3. Target Medicare and Medicaid as the two programs that will surely sink America, leading to financial collapse . . . (China will rule the world!) . . .
  4. But wait! Maybe there’s a way out . . .

If the American people will agree to kill Medicare and Medicaid, the titans of finance will extend Social Security (for a little while)!

(Do you doubt this mid-February opinion that Republicans would be so callous as to destroy Medicare and Medicaid? See the Republican budget plan, issued at the end of March, to destroy Medicare and Medicaid, among other things.)

Attention old folks and future old folks! Listen up: You can survive without Medicare, right? We’ll keep sending you a diminished Social Security check (no cost-of-living increase). It’s a fair deal. You keep Social Security, we take Medicare. Everyone has to share the pain, right? This will only hurt a little.

It’s a deal you can’t refuse, old folks and future old folks. Or can you? Watch the little ball. Keep you eye on the shells. Now you see it, now you don’t.

If Republicans and their wealthy patrons can pull this off, it will be the biggest public relations coup since the invention of  “the death tax.” Democrats are taking the bait.

— John Hayden

It Might Be More Serious Than ‘Uncertainty’

Maybe it’s time for the rulers of the world to start worrying?

Human governments are unstable by nature. Revolutionary change does not run on any logical schedule. Revolution can come when you expect it, or when you don’t. Who in the West could have predicted the fall of the Berlin Wall in 1989, followed by the breakup of the Soviet Union in late 1991?

The financial capitals of the U.S. and Europe have been in economic turmoil for three years. But the revolution comes first in the Middle East. In a matter of weeks, change comes to Tunisia and Egypt. In recent days, protests spread through the region — in Libya, Yemen, Syria, Bahrain.

In Egypt, the focus was secular. The concerns were poverty and democracy. In Bahrain, the conflict has religious overtones. Perhaps Saudi Arabia and Iran will be exempt. Perhaps not.

If it can happen in the Soviet Union, Eastern Europe, the Middle East, could it happen in America?

In Wisconsin?

In America, a great divide has opened between certain monied elites and the people who work for them. Certain elites have decided they don’t need government workers, and they’re not going to pay for people they don’t need. This drama has been playing out in towns and counties throughout America. A spirit of cooperation in the first year of budget cuts is wearing thin in the second and third years. Tempers are getting short on both sides of the budget tables. Some public workers are getting angry.

The standoff in Wisconsin between the Republican government and the people who work for the government is ugly and ominous. The Republicans intend to break the back of the public unions.

Nearly every other state is facing similar budget dilemmas, and many states are in worse shape than Wisconsin. Among the Republicans who have come to power, there is talk of layoffs and bankruptcies, but not of tax increases.

In the recent U.S. election campaigns, politicians promised to create jobs. It is just now sinking in that politicians intend first to eliminate many more jobs — in federal, state, and local governments.

Unemployment is above nine percent, but corporations and investors are hoarding cash, refusing to invest or hire. They plead uncertainty. Uncertainty on Wall Street, uncertainty about oil price and supply, uncertainty about taxation, uncertainty about public debt.

Look, life is uncertain.

The super-rich can tolerate uncertainty. Their money is in safe, offshore banks.

— John Hayden

Black Beans And Bread

The stomach is more powerful than the brain.

Hungry people are desperate people. The leader who can give the people black beans and bread, that leader RULES. It’s something to keep in mind as you watch the political-economic turmoil in Egypt, and other troubled lands.

My high school “Problems of Democracy” teacher, Mr. Thomas, repeated the words “black beans and bread” often, as he explained the iron grip of oppressive regimes, particularly Soviet-dominated Eastern Europe in the 1960s.

When people are starving, a dictator promises black beans and bread, said Mr. Thomas. If the dictator delivers black beans and bread to hungry people, that dictator rules.

Food inflation is often emphasized, when pundits list the grievances of the Egyptian people. Oppression, poverty, food shortages. There you have a recipe for revolution.

An arrogant answer like “Let them eat cake,” is a ticket to the guillotine. In the 21st Century, an arrogant answer of austerity, unemployment, and inflation might result in a one-way ticket out of the country.

Then there’s the short-sighted folly of using agricultural land to grow fuel, instead of food. I can hardly wait until some arrogant politician says, “Let them eat ethanol.”

I’ve heard that food shortages and inflation will likely worsen. Water shortages will soon be even more dangerous than food shortages. The food and water wars are only beginning.

— John Hayden

Divide And Conquer: The New Plan To End Social Security By Dividing America at 55

Now begins the cold-blooded campaign to destroy Social Security. The plan is to divide and conquer the American people along generational lines. Synchronize your calendars.

If you’re over 55, you’re a Social Security winner; if you’re under 55 you’re a Social Security loser. Life is a lottery based on a four-digit number, the year you were born.

The proponents of this cynical conspiracy intend to pit father against son, mother against daughter. The elders are comfortable, warm and well-fed. So what if the sons and daughters have to eat dog food in old age? Who cares?

FDR SIGNING THE SOCIAL SECURITY ACT, 1935. DO THESE PEOPLE LOOK LIKE COMMUNISTS? WikiMedia Commons Photo

Since the beginning, when President Franklin D. Roosevelt signed Social Security into law in 1935, some people have hated Social Security. The concept of lifting every elderly American off the dirt floor of poverty infuriates the cold-hearted and mean-spirited. The diehard opponents of Social Security live by their own “Golden Rule,” to wit:

“He who has the gold, rules.”

The spirit of Social Security is too good, too honest, too simple, too clear. Social Security is kindness and justice for every old man and old woman in America, backed by the full faith and credit of the United States government. Every old man and old woman deserves to live in dignity, with food to eat and a roof over their heads. What’s so hard to understand about that?

IDA MAY FULLER, RECIPIENT OF THE FIRST SOCIAL SECURITY CHECK. (THESE DAYS, YOU CAN GET DIRECT DEPOSIT.) SSA Photo

 

The Social Security safety net has been a blessing for every generation since the Great Depression. Medicare has been a life-saver for senior citizens in a health system run by unforgiving insurance companies. There is no good reason why Social Security and Medicare should not continue to be a blessing for today’s adults — whatever their age — and for their children and grandchildren. Where did this crazy idea of discriminating by age and generation come from? Oh, right. For the record, it came from Republicans.

(By the end of March2011, it appears clearly that Republicans intend to destroy Medicare and Medicaid first, by way of a scorched-earth budget policy. Please see my post, “Wilding in Washington: Last Stand of the White Men in Suits.”)

I’m 62, and no one I know among my contemporaries would wish upon their children and grandchildren a future without Social Security.

Only a fool would believe that children born in 2010 will be so healthy and wealthy, 65 years hence, that they will not need a safety net in old age. What is the logic, what is the fairness, in saying that America will keep faith with everyone over 55, and to hell with everybody under 55?

I wouldn’t stand for it, if I were 25 years old today, or 35, or 45. If you’re going to treat one group of people fairly, you must treat every group fairly.

Social Security is solvent right now. The propaganda claims it is not financially viable for the future. The propaganda is a lie. The most recent projections say it won’t run out of money until 2037.

All Social Security needs is minor adjustments to keep going past 2037, and going strong.  See 12 Ways To Fix Social Security.

Every machine needs routine maintenance. That is Social Security exactly. Congress made adjustments in the 1980s, and the machine has been running smoothly ever since. Right now is simply the time for the regular 100,000-mile maintenance.

To discriminate by age is not the American way. Divide American into the privileged and the have-nots at age 55? No way. Put your foot down. Open your window and scream. Just say no.

We can and must save Social Security for today’s 25-, 35-, and 45-year-olds.  With a little fine-tuning, Social Security will still be strong, for those over 55, and for all Americans. What do you think? — John Hayden

Political Zeitgeist In America

Is there any political reality remaining in America? I’ve been trying to make sense of the political zeitgeist following the election of 2010. Two contradictory perspectives came into focus this week.

Vice President Joe Biden summed up the message from the electorate on “Meet the Press.” Voters want elected officials of both parties to work together and compromise, Mr. Biden said.

MICHELLE RHEE. -- Wikimedia Commons public domain photo

Michelle Rhee, an education reformer who used to be chancellor of D.C. public schools, stated a different position in “Newsweek.”

“I don’t think consensus can  be the goal.” said Ms. Rhee. And: “We can’t shy away from conflict.”

That’s the tension in American democracy — longing for peace and compromise on one hand; and an appetite for political conflict on the other. Voters who are comfortable with the status quo yearn for politics without conflict. They see reformers as troublemakers.

Reformers seeking change are impatient with compromise. They’re willing to tolerate a degree of political unpleasantness to achieve a goal. Compromise usually doesn’t bring them closer to the goal. Compromise simply kicks the problem down the road for a year or three.

 

THE AMERICAN ELECTORATE IS NOT ONLY POLARIZED AT THE EXTREMES. THE INDEPENDENTS IN THE MIDDLE HAVE LITTLE USE FOR EITHER SIDE. Wikimedia Commons public domain image.

It’s human nature to seek the easiest path, to avoid pain and sacrifice. So it’s not surprising that a majority wants compromise. That’s what happened this week, when President Obama crafted an agreement with Senate Republicans to extend current tax cuts for the wealthy, and at the same time extend unemployment compensation for the poor.

The tax-cut compromise is the easy path. It avoids pain all around. But it also adds billions to the national debt. The majority of voters got what they wanted, a minimum of conflict. They are pleased to kick difficult decisions about the national debt and economic austerity down the road.

Americans seem to be dangerously addicted to the easy path. European nations are engaged in national debates (often in the streets) over austerity measures to address their debt problems. America is falling behind on debt, just as we are falling behind in economic competitiveness.

Most troubling of all is that America has fallen way behind other advanced countries in education. Michelle Rhee knows about the public schools:

“The truth is that despite a handful of successful reforms, the state of American education is pitiful, and getting worse.”

If we’re not competitive on education, we won’t have a chance to be competitive economically. And the American electorate complacently ignores the education crisis. In fact, state and local governments are preparing to cut deeply into funding for education, in order to balance government budgets.

Ms. Rhee is quite forthright about the political path to improving education in America. And it’s definitely not the easy path.

“Public school reform is the civil-rights issue of our generation. Well, during the civil-rights movement, they didn’t work everything out by sitting down collaboratively and compromising. Conflict was necessary in order to move the agenda forward. There are some fundamental disagreements that exist right now about what kind of progress is possible and what strategies will be most effective. Right now, what we need to do is fight.”

Any questions? Yes, political conflict is necessary for problem-solving and progress. In some other countries, they resolve political differences through violent conflict. In America, we resolve political differences through elections. Settling our conflicts through civil debate, rather than violence, is the great achievement of democracy in America.

We need to start addressing our political conflicts, not avoiding them. The sooner the better.

— John Hayden

Unemployment and $3 Gasoline in the U.S., Austerity and Street Protests in the Capitals of Europe

BOOK SHIELDS IN ROME. One of many photos circulating in European newspapers and blogs, of protests against government austerity plans. This one shows students in Rome using book-like shields. Tomorrow, you'll likely see similar street theater in London. But only if you have access to European sources.

The beautiful people on CNBC, the Wall Street propaganda channel, chat happily about how high stocks might fly, and the price of gold and oil.  It’s surreal.

Even as they talk, the economy of the Western world is teetering on the edge of chaos. Students protest daily in the capitals of Europe against draconian austerity plans designed to screw the middle class and working class, and especially the younger generations. European governments seem intent on staving off default by cutting deeply into funding for education, arts and humanities. As you can see, ConsterNation is an international state of mind.

You need direct European sources to keep up with events over there. For instance, news and photos of the book protests in Rome can be found at this Italian blog by Italian novelists. If you can read Italian, you could look at their main blog.

Baroque in Hackney reports that students in London will mount a similar protest on Thursday. Ms. B even provides the address where you can go on Tuesday to help make life-sized books for the demonstration, if you happen to be in London. If not, there’s plenty of time to get there by Thursday. It’s a small world, so they tell me.

“With Arts and Humanities a particular target for UK cuts this is a literal display of literary resistance.”  — Ms. B

For more inside information (and videos) from the U.K., you could look at Coalition of Resistance.

Until recently, the U.S. cable channels had been reporting on the debt crises in Greece and Ireland. But as the contagion threatens to spread throughout the southern half of Europe, coverage in the U.S. has all but disappeared. You’ll not likely see film or photos of protests in Europe on CNBC, or any other news channel.

Could the U.S. news blackout on European protests be a conspiracy to keep Americans from knowing the extent of economic turmoil, at least until after the Christmas shopping season? When did I become so cynical? Maybe the news blackout is to prevent protest fever from jumping the Atlantic and infecting U.S. students. Maybe it’s to prevent panic.

Let’s go to the NUMBERS.

Even as the beautiful TV people talk, unemployment in the U.S. is 9.8 percent, officially, and possibly twice that much, in reality. Members of the U.S. Armed Forces are fighting and dying in Afghanistan and Iraq, and for their service they will receive a 1.4 percent pay increase, the lowest in many years. The price of gasoline is $2.97 a gallon, where I live, and more than $3, in urban areas. The snow is knee-deep, or higher, in Buffalo, N.Y.; and the temperature is going down to 30 degrees tonight in Orlando, Florida.

LILY HAS AWESOME POWERS OF CONCENTRATION WHEN A DOG BISCUIT IS BALANCED ON HER NOSE.

And Lily, the golden retriever, has about a one-in-three chance of balancing a dog biscuit on her nose, tossing it in the air, and catching it in her mouth. I had to add the true story about Lily and the dog biscuit for a little comic relief.

No one can predict the future. But let me make a few guesses. The temperature will go up later this week in Florida, and the snow will melt in Buffalo, by late spring.

But across America, it is entirely possible that unemployment will remain above 10 per cent and gasoline will remain above $3. For how long? Forever.

And what will the austerity plan agreed to by the U.S. government and the Wall Street tycoons look like? I will not hazard even a guess.

— John Hayden

“You Say You Want a Revolution?”

A picture is worth a million words. There seems to be a difference of opinion throughout Europe (and in America, too) concerning money, and debt. Also, some mild disagreement about who should pay the price and make the sacrifices, and who should get bailed out.

Schoolgirls link hands to protect a police van during student protests in London. -- Peter Marshall photo.

Baroque in Hackney reports that a younger generation — “The Kids” — is seizing responsibility because their elders are cowed by the powers that be. Ms. B’s post is enlightening. I urge you to read it.

How far will the wealthy elites in Europe and America push the children of the former middle-class? If you want to know which way the wind is blowing, please read this article by Jonathan Jones from The Guardian. Here’s a brief excerpt:

“For this picture tells a lot, very quickly. It tells us the menace of violence is real as anger grows among groups directly afflicted by the coalition’s cuts. Yet it also reveals that most protesters are peaceful, idealistic, with a sense of history and of the gravity of their actions. Most of all it tells us how amazingly young many of them are.

Future historians may well write that the Conservative-Liberal coalition was doomed the day schoolchildren took to the streets to assert their right to a university education.”

People are protesting in the streets in France (Social Security); England (college tuition); Ireland (budget cuts); and the European Union is getting ready to bail out the biggest banks in Greece, Ireland, Portugal, Spain, and maybe Italy. The U.S. already bailed out its bankers, and people protested with their votes.

So this is the way it’s going to be? The rich get richer; the middle-class get screwed?

“You say you want a revolution
Well, you know
We all want to change the world
You tell me that it’s evolution
Well, you know
We all want to change the world
But when you talk about destruction
Don’t you know that you can count me out
Don’t you know it’s gonna be all right
all right, all right

You say you got a real solution
Well, you know
We’d all love to see the plan
You ask me for a contribution
Well, you know
We’re doing what we can
But when you want money
for people with minds that hate
All I can tell is brother you have to wait
Don’t you know it’s gonna be all right
all right, all right”

— The Beatles

I’ve written about the consequences of what I would call “capitalism off the hook” before. I didn’t think the reaction in the streets and at the voting places would be so swift or serious.

With apologies to Buffalo Springfield, I don’t think it’s paranoia. I think, “There’s something happening here. What it is ain’t exactly clear.”

Mr. Jones of The Guardian describes what’s happening as follows:

“We can look at this picture and see a mass movement rapidly evolving as a generation goes beyond merely taking to the streets and starts finding a larger meaning in its rebellion, and imposing order in new ways. What these girls are showing us is that this is not just about rage. It is a defiant stand for youth and hope.”

Do you think President Barack Obama and Fed Chairman Ben Bernanke understand what’s happening?

“The Kids” and their “cowed” parents understand that they’re being screwed. Government leaders understand the consequences of tax cuts for the rich and budget cuts for the poor.

The wealthy elites understand that they’re screwing the poor, and what’s left of the middle-class. The wealthy always believe they have a right to exploit the poor.

So it looks like it’s the Powerful elites against “The Kids.” You can call it “class warfare,” if you want. I’m afraid that the Powerful will make precious few concessions to “The Kids,” at least not without an ugly struggle. How it will play out, no one knows.

— John Hayden

“Revolutionary Road”

Here’s a book review of interest to all of us who grew up during the 1950s. The book is “Revolutionary Road,” by Richard Yates, and the review is over at Baroque In Hackney.

Here’s a quote from the review that rings true with me:

“Of course, it’s a tragedy. But it’s a nasty tragedy. It’s not a tragedy about the price of conformity, it’s more about the danger of imagining yourself better than everyone else. It’s the fifties turned inside out, and I found myself laughing out loud in inappropriate places, just for the joy of it.”

So many of us imagine ourselves as “better than everyone else.” The Tea Party leaps to my mind.   Continue reading

Suck Up To The Rich, But Kick The Poor When They’re Down

Dorothea Lange's "Migrant Mother," a...

Image via Wikipedia

It has been said: “Nothing succeeds like success.”

And:  “Nobody loves you when you’re down and out.”

That about sums up the unforgiving political climate in this raw election year.

One statehouse candidate in my corner of America says she wants to make our state “Millionaire-friendly.” Wait a minute. Today’s big news is the fast foreclosure scandal, and this candidate is worried that millionaires don’t have enough friends?

I don’t know whether to laugh . . . or cry.

Meanwhile, several candidates here are keen to make seasonal workers ineligible for unemployment compensation, in the midst of the worst depression since . . . The Depression.

Around here, we have plentiful work in summer, nothing in winter. Unemployment compensation for seasonal workers has been part of the business and economic equation — the social contract, if you will — for decades. Not anymore.

In this new, winner-take-all system, some local leaders ridicule the unemployed. The poor are “gaming the system,” they say.

Supermarket clerks laugh at folks who have to pay with food stamps. Folks lucky enough to be working scapegoat the unemployed. Don’t touch their food stamps; they might be contagious.

Cozy up to the rich.  Give the poor a kick in the teeth.

Politicians know how to choose their friends. But do voters know how to choose their politicians? Is this a great country, or what?

— John Hayden

How NOT To Simplify Your Life

Here’s eight easy steps that I do not recommend:

  1. Quit your night job and run for an obscure political office.
  2. One blog isn’t enough. Try three blogs.
  3. Get yourself adopted by a cat.
  4. Volunteer for a political campaign. Better yet, volunteer in TWO campaigns.
  5. Freely offer unsolicited advice.
  6. Begin each day promptly at the crack of noon.
  7. Experiment with carbohydrate-rich nutrition.
  8. Be too busy for prayer. Be too busy for exercise. Forget to be grateful.

Every day is a good day to repent and start anew. Today, for instance. For starters, one blog will be enough, don’t you agree?  This blog is the one. Humor me. Stay tuned.