Subscribe to Common Dreams News Updates
Most Popular This Week
Popular content
Today's Top News
Sanders: Obama Proposal Would Impoverish 250,000
The Social Security Administration estimates that a proposal floated by the Obama administration would put 245,000 people into poverty, according to an analysis released by liberal senator Bernie Sanders (I-Vt.) on Saturday.
Sen. Bernie Sanders has led the charge in the Senate to defend Social Security against benefit cuts. That level of impact would be felt by 2050 if a proposal to change the way inflation is measured is adopted, Sanders announced. The change to the way SSA would calculate the Consumer Price Index has been floated in debt ceiling talks between Congress and the White House. The White House has suggested revising CPI for both the tax code, in order to generate more revenue, and for benefits.
Social Security Administration’s Office of Retirement Policy estimated that by 2030, according to the report prepared for Sanders, there would be 173,400 more people living in poverty in the United States.
Benefits for those who are 80-89 would drop by $960 a year. Benefits for women would fall by 3.5 percent overall while men’s benefits would drop by 2.9 percent.
By 2050, seniors in the 80-89 age bracket would see benefits fall by $1,200 a year.
"I am especially disturbed that the president is considering cuts in Social Security after he campaigned against cuts in 2008," Sanders said. "The American people expect the president to keep his word."
This week Sanders demanded that Senate Majority Leader Harry Reid (D-Nev.) join House Minority Leader Nancy Pelosi (D-Calif.) in flatly ruling out any benefit cuts to Social Security as part of the debt deal.
Reid in the past has said Social Security does not need to be reformed for decades. While Social Security is expected to be unable to pay full benefits by 2036, it is not a major driver of the budget deficit. Republicans want the program reformed now because they fear otherwise that as 2036 approaches massive tax hikes that could stall the economy would be demanded by senior citizens.

55 Comments so far
Show AllPure propaganda. Republicans today are worried about massive tax hikes in 2036, or 2026? They are worried about a "stalled economy" more than a decade from now, while they are preparing to crash the economy today by not agreeing to extend the debt ceiling?!
Gimme a break! What poppycock. They oppose tax hikes TODAY, and they are a bunch of greedhead scammers who want to impoverish everyone but their own elite wealthy class. They identify with Wall Street which wants to privatize SS.
Isn't it amazing how we never hear about how many COUNTRIES are going to be impoverished by the destruction of their infrastructure by our war machine?
And in our own country, how many people will the War machine impoverish this year? How come there is no data on that?
We get it about Social Security and Medicare. They help average Americans live slightly above the level of a homeless person so Wall Street has to eliminate them in order to make us a more "competitive" (i.e. kill and eat each other) society. The sociopaths in Wall Street want to "evangelize" the populace so we are all one big ferocious predator society. The rest is PR from the bribed bunch in congress and the White House.
Really, folks, this is not about money. If it was, the minor detail of multiple wars and pentagon deployments to umpteen countries bankrupting the government would have been mentioned. ALL our wars are wars of choice right now.
I know, it wasn't your choice but the fact that all this offense spending is the main factor in our country's headlong rush to a police state and bankruptcy is kinda, sorta pertinent to a national budget discussion and fails to be put on the table is a massive "deficit talk is bullshit" flag.
Yes, we have a horrible deficit problem. No, the politicians are not dealing with it. All they want to do is double cross us out of Social Security and Medicare. It is small consolation to me that this set of bastards currently in politics will probably see the end of the USA as a world power. I'm not exactly pleased to see federal pensions, social Security and Medicare in jeopardy.
But our politicians are not doing jack shit to solve this problem.
I read an interesting comment by a libertarian named Bill Bonner on his Daily Reckoning Newsletter today quoting Lenin. It appears Lenin was quite the prophet.
Bill Bonner writing in The Daily Reckoning July 10, 2011:
In 1917, the year of Russia's October Revolution, Vladimir Ilyich Lenin offered a few predictions for the century ahead:
Germany will militarize herself out of existence,
England will expand herself out of existence,
and America will spend herself out of existence."
Had he known the inherent shortcomings of his own political ideology, Bolshevism's bad boy might also have added, "And Russia...she will plan herself out of existence."
As for the United States, it seems she is not content with simply spending more than she produces, foisting the unfunded obligations onto future generations; instead, she militarizes, expands, spends AND plans toward her own demise...as all once great empires eventually do.
---------------------------------------------------------------------
Bill Bonner, being a libertarian, never met a social program he didn't want to do away with. I guess it never occurred to him that air traffic control is a government service and the people there, like most government employees are not on some kind of swag conspiracy to steal from businesses. However, he is right about military empire death spiral spending.
Lenin may have been a tyrant but, as long as he wasn't talking about Russia, he was right.
"I can hire one half of the working-class to kill the other half." -- Jay Gould, Gilded Age railroad tycoon and land speculator
I hope more and more of you have figured out that since Social Security is not funded by income taxes on the rich or super-rich, but by payroll taxes on working-class Americans that there IS no Social Security budgetary crises. The Social Security trustees have said that if nothing it done it will pay out 100% of its benefits until 2036 and 80% of its benefits for decades after that.
The only reason contemporary Democrats are siding with Republicans and Tea Partiers to openly and needlessly attack Social Security is that they are deliberately helping them (and their shared plutocratic bankrollers) to unleash more dangerous and extremist neo-liberal policies (like "free trade," deregulation of banks, de-taxing the rich even during wartime, legalized usury, corporate collectivization of agriculture, hampering labor unions' ability to organize and cheering the stripping of collective bargaining rights, etc.) that they KNOW will destroy the ability of this country to create enough jobs of ANY kind, let alone enough jobs that will allow Americans to decently support a family--now and for decades to come if we let them have their treacherous bipartisan way.
They WANT to destroy job creation in order to destroy the ability of younger generations of American workers (who are increasingly unemployed or under-employed) to pay into payroll taxes to support Social Security.
This is because our ruling plutocrats want to eliminate the last remnant of a middle-class that, in their view, grew too large, too affluent and well-benefited and too politically powerful so that it dared participate in our former democratic republic and thereby interfered with their Gilded Age and Roaring Twenties era anti-democratic, often monopolistic control over politics, the economy and all three branches of government and their sacred corporate bottom lines that, sans an informed middle-class to effectively oppose them, trample on our education system, domestic job growth, environment, health care, food and drug safety, transportation systems and nearly every other aspect of our lives.
Eliminating the historically unprecedented and fiscally insane Bush II wartime tax cuts for the super-rich ALONE would solve the current budget crises sweeping the States and have enough left over to extend the Social Security 100% benefit payout until 2086. Cutting Pentagon spending and ceasing "wars of choice" not justified by evidence of clear and present danger to U.S. national security would save $TRILLIONS of dollars over ten years. The elimination of agricultural subsidies to giant globalized agri-businesses (for whom they were never originally intended) and celebrity farmers who use their "farms" as a tax dodge would likewise save $TRILLIONS.
A one cent per $4 dollars transaction tax on Wall Street speculation similar to what the U.S. had 50 years ago and the EU still has would simultaneously decrease market volatility, discourage rampant short-term speculation in dubious derivatives and high-speed computerized trading by "too big to fail" Wall Street players, and generate huge revenues very quickly that would come from the class that MOST needs to contribute back to the society who MADE them (or the plutocrats they inherited from) in the first place. All of these cuts are things that a majority of the public approves of in poll after poll.
The delusional "deficit hawk" idiocy the Democrats are aiding and abetting for the Republicans and Tea Partiers is just another failed tri-partisan wart on the fairytale mythology of Ayn Rand devotee Milton Friedman's economic neo-liberalism that is driving America off a cliff with the stupid and/or eager participation of over 200 million ignorant, brainwashed Americans.