Progress Report: The 2 Trillion Dollar Travesty

[Guest guest]

Mon, 29 Nov 2004 09:06:21 -0800

Progress Report: The 2 Trillion Dollar Travesty

" American Progress Action Fund "

<progress

 

 

 

by Christy Harvey, Judd Legum and Jonathan Baskin

 

November 29, 2004

SOCIAL SECURITY The 2 Trillion Dollar Travesty

VALUES The Moral Minority

UNDER THE RADAR Go Beyond The Headlines

 

 

SOCIAL SECURITY

The 2 Trillion Dollar Travesty

 

President Bush and his cronies in Congress – in pursuit of a radical

right-wing agenda that is anything but conservative – are working a

Social Security privatization scheme that would add trillions to the

national debt, cut retirement benefits and raise taxes. It is all part

and parcel of the president's plan to cut guaranteed Social Security

benefits in favor of risky privatized accounts. Under the current

system, the payroll tax collected from today's workers goes to

benefits for people who are already retired. Bush seeks to divert some

of that money into privatized accounts for workers who won't retire

for years, which won't leave enough money to pay today's retirees.

Even Joshua Bolton, one of Bush's top economic advisors, acknowledges

that the shortfall, which could exceed $2 trillion over 10 years,

would likely " require additional borrowing. " This would significantly

increase the national debt, which already stands at $7.5 trillion.

(The Bush administration managed to add $413 billion last year alone).

Meanwhile, Bush allies like Rep. Jim Kolbe (R-AZ) – seeking to reduce

the amount of borrowing to around $800 billion – are backing

significant Social Security benefit cuts and tax increases to off-set

the cost of the administration's privatization scheme. (For all the

details of the costs of Social Security privatization, read this paper.)

 

IGNORING THE PRICE TAG: The administration and its congressional

allies have come up with a clever way to avoid dealing with the

financial consequences of Social Security privatization: Ignore them.

Despite its potential $2 trillion price tag over 10 years – and the

president's insistence that it is a top priority – top conservatives

in Congress are considering keeping the costs of privatization " out of

the five- and 10-year deficit projection that Congress looks at when

it writes the annual budget. "

 

NO PROBLEMS WITH SOCIAL SECURITY FOR THE NEXT 48 YEARS: There is a

dirty little secret in Washington that the Bush administration doesn't

want you to know about: Social Security is in pretty good shape. In

fact, " Social Security is more financially sound today than it has

been throughout most of its 69-year history. " According to the

non-partisan Congressional Budget Office, without any changes at all,

the Social Security program can pay all benefits through at least 2052.

 

TAX CUTS FOR TOP 1 PERCENT EXCEEDS COST OF FIXING SOCIAL SECURITY FOR

75 YEARS: During the next 75 years, the total shortfall for Social

Security amounts to just 0.4 percent of Gross Domestic Product (GDP).

Meanwhile, during that same period, President Bush's tax cuts just for

the top one percent of earners (a group of people whose average income

exceeds $1 million) will cost 0.6 percent of GDP. All of Bush's tax

cuts will cost 2 percent of GDP during the next 75 years – or five

times the projected 75-year Social Security shortfall. The current

system could be made solvent for the indefinite future with

adjustments in the tax code far more modest than those approved by

Ronald Reagan in 1983 to protect Social Security.

 

PRIVATIZATION MEANS MORE MONEY WASTED ON ADMINISTRATIVE COSTS: Another

little-known fact: Social Security is run very efficiently. In the

current system, because the funds are managed together, less that 0.6

cents of every dollar paid out in Social Security benefits goes to pay

administration costs. In England, which has adopted privatized

accounts for its retirement system, 15 cents of every dollar paid out

in benefits goes to administrative fees. Even by the Bush

administration's own estimates, in a system of privatized accounts, 5

cents of every dollar would go to administrative costs, more than 8

times the amount spent on administrative costs today.

 

VALUES

The Moral Minority

 

Yesterday on Meet the Press, Reverend Jerry Falwell reaffirmed the

Christian Right's narrow focus on two issues: gay marriage and

abortion. Asked by progressive religious leader Jim Wallis to engage

in a " broader and deeper " conversation about values, Falwell and

fellow conservative preacher Dr. Richard Land resorted to bigotry and

misdirection, lashing out against gays, women and religious

progressives. Falwell's priorities fly in the face of the " moral

values " most often cited (though not most often reported) on Nov. 2,

where polls showed voters were more concerned with " greed and

materialism " (33 percent) and " poverty and economic justice " (31

percent) than they were with issues like gay marriage (12 percent).

Nevertheless, Christian conservatives around the country are following

Falwell's lead, dismissing concerns about separation of church and

state and setting out to refashion the federal courts around a narrow

agenda which conflicts with the values of most Americans.

 

FALWELL DEMEANS RELIGIOUS PROGRESSIVES: Falwell went out of his way on

Sunday to divide America, saying those who voted for John Kerry did

not " take the bible seriously. " Wallis shot back, saying, " Jerry,

there are millions and millions of Christians who want the nation to

know that you don't speak for them...that Jesus, our Jesus isn't

pro-rich, pro-war and only pro-American. We don't find that Jesus

anywhere in the Bible. "

 

FALWELL REAFFIRMS BLAME FOR 9/11 ON GAYS, FEMINISTS: Falwell refused

to back down from his comment that 9/11 had been caused by " the

pagans, and the abortionists, and the feminists, and the gays and

lesbians [and] all of them who have tried to secularize America. " He

reiterated that, " when we defy the Lord, I think we pay a price for it. "

 

FALWELL FLIP-FLOPS ON GOD, WAR: Falwell contradicted himself on the

war in Iraq, cited by 42 percent of respondents as the moral issue

which most influenced their vote on Nov. 2. When Rev. Wallis asked him

why he had said God was " pro-war, " Falwell said, " I don't believe God

loves war…everybody hates war. " The name of Falwell's 1/31/04

commentary? " God is Pro-War. "

 

SETTING THE RECORD STRAIGHT ON CIVIL RIGHTS: Falwell and Land tried to

cast their anti-abortion crusade as similar to the civil rights

movement led by Martin Luther King Jr. But Al Sharpton reminded Land

it was his own church that fought against King. " What [King] did was

fought against the Southern conservative values of those days, " said

Sharpton. " He fought the Southern Convention that you represent. Dr.

King fought that convention. Let's not rewrite history. " Wallis added

that King had served as a model of how religion and values could play

a part in political life: " He reminded us of this wonderful vision of

a beloved community where no one gets left out and those who are

always left out have a front-row seat. "

 

RELIGIOUS RIGHT SETS AFTER COURTS: The Palm Beach Post's George McEvoy

reports Congressmen pandering to the Christian right wing are planning

ways to strip federal courts of " their right to hear cases involving

the separation of church and state. " Rep. John Hostettler (R-IN),

addressing a special legislative briefing of the Christian Coalition

last month in Washington, said he planned to introduce a bill that

would " deny federal courts the right to hear cases challenging the

Defense of Marriage Act, which bans same-sex marriage. " Unimpressed by

America's system of checks and balances, Hostettler inveighed, " When

the courts make unconstitutional decisions, we should not enforce

them. Federal courts have no army or navy...At the end of the day,

we're saying the court can't enforce its opinions. " Rep. Robert

Aderholdt (R-AL), recently advocated " court stripping as a means to

protect state-sponsored Ten Commandment displays. "

 

KENNEDY WARNS BUSH: Another conservative religious leader, Dr. James

Kennedy, whose sermons are broadcast in 3 million homes, has warned

that God will " be angry " if President Bush does not act soon on

abortion and gay marriage. " He said he knows of no timetable for God's

wrath, but wants results fast. " Asked about the millions of Americans

who are not Christian, or have a different interpretation of

Christianity, Kennedy recommended they " repent " and said he " couldn't

care less " about their views.

 

 

Under the Radar

 

MILITARY – WOES OF AN OVERSTRETCHED NAT'L GUARD: Equipment and

manpower shortages are placing increasingly strenuous demands on the

" citizen soldiers " in the National Guard and Reserves, now being

transformed into active duty, front-line combat troops. Members of the

California Army National Guard say they were " under strict lockdown

and being treated like prisoners rather than soldiers by Army

commanders " while training at a remote desert camp in New Mexico.

Moreover, the Los Angeles Times reports, the training they received

was so poor and equipment shortages so prevalent " that they fear their

casualty rate will be needlessly high when they arrive in Iraq. " One

sergeant remarked, " I came back to the National Guard specifically to

go to Baghdad, because I believed in it, believed in the mission. But

I have regretted every day of it. This is demoralizing, demeaning,

degrading. " Meanwhile, local papers across the country continue to

document the " backdoor draft. " Recent call-ups include a 43-year-old

single mom who was honorably discharged 12 years ago, a 48-year-old

Alabama man with a hip replacement and fused vertebrae, and one man

" with a hospital identification band still on his wrist. He'd just had

knee surgery. "

 

HOMELAND SECURITY – THE FORGOTTEN PORTS: A veteran U.S.

counterterrorism agent has a scary message about the vulnerability of

the nation's ports: " If I was Al Qaeda and I was looking for a hit,

that is exactly where I would look. " According to the LA Times, " For

all the concern about safety at the nation's airports,

counterterrorism officials and other experts say the nation's ports

may now present an even greater threat. Since Sept. 11, they have

received far less security funding than airports, yet they continue to

process far more cargo — more than 9.5 million containers a year. " For

example, about 12,000 containers arrive every day at Los Angeles and

Long Beach ports in California. Under current screening measures,

officials only scan about 720 of these containers and inspect roughly

43 by hand. Dale Watson, former FBI head of counterterrorism, states,

" Even though there were manifests, some of us got the sense we really

didn't know what was coming and going. "

 

OMNIBUS – TRICKY BUSINESS: Today's Roll Call exposes some tricky

business tucked into the massive omnibus bill recently passed by

Congress. " Without floor debate or a single hearing, Congress changed

election laws last week to allow members to transfer campaign funds

raised for a federal race to a run for state or local office. " A

small, " four-paragraph provision taking up less than half a page in

the 3,300-page omnibus appropriations measure struck a portion of the

landmark campaign laws adopted in 2002 and once again freed Members to

apply dollars raised for federal elections toward bids for governor,

mayor or other offices. " Some lawmakers, like Wisconsin's Sen. Russ

Feingold (D), were outraged by the maneuver. " Regardless of the merits

of the provision allowing Members of Congress to use their federal

campaign accounts for state campaigns, a few senior Members of

Congress or their staffs should not be permitted to rewrite the

campaign finance laws by slipping something into the omnibus

appropriations bill, " said Feingold.

 

OMNIBUS – SPECIAL INTEREST BONANZA: More details have emerged about

the self-described " lean and clean " $388 billion spending bill

Congress passed last week: $443,000 set aside to make salmon baby

food; $236,000 to research blueberries; $335,000 to help North Dakota

shoo blackbirds off sunflowers; and $1 million for a " Wild American

Shrimp Initiative. " (As an outraged Sen. John McCain quipped, " Are

American shrimp unruly and lacking initiative? Why does the US

taxpayer need to fund this `No Shrimp Left Behind Act?' " ) While

special interests -- such as the Rock and Roll Hall of Fame, which

got $350,000 for " education programs " -- hit the jackpot, other

programs weren't quite so lucky – the bill slashes eligibility for

college Pell grants, which help low-income students pay for education.

 

ENVIRONMENT - IN PERIL: With Republicans in control of both the White

House and Congress, environmentalists are becoming increasingly

nervous about the future of environmental protections. At issue are

" possible sweeping Bush-backed rule changes on clean air, Arctic

drilling, roadless areas in national forests, endangered species,

sewage dumping and mountaintop removal to mine for coal. " Clean air is

at risk, for example, with industry groups pressuring

industry-friendly conservatives in Congress to " relax pollution limits

for ozone, eliminate vehicle tailpipe inspections and ease pollution

standards for cars, sport utility vehicles and diesel-powered big

trucks and heavy equipment. " As clean air lobbyist Frank O'Donnell

worries, " There are many breaks yet to be dished out to big campaign

contributors.'' Karen Wayland of the Natural Resources Defense Council

is pledging environmentalists will fight back, stating the Bush

administration " 'risks a hornet's nest of public opposition' if it

rolls back health, environmental and conservation protections to

benefit oil, coal and mining industries. "