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Posts Tagged ‘social security’

Producers vs. Moochers, Freeloaders and Losers — The Cruel Pro-Rich Propaganda of the Right

By Dave Johnson
Fellow, Campaign for America's Future

“Producers” and “parasites.” Cruel language justifying extreme greed seems to be mainstream now. Even Presidential candidates feel free to disparage 99% of us! In today’s right-wing folklore government by We, the People is an evil thing that takes from “producers” and gives to “moochers,” “freeloaders,” and “losers.” Government and taxes “take money out of the economy.” Decision-making by We, the People is “collectivism” and “mob rule.” And those of us who think the insanely wealthy should pay fair taxes suffer from “envy.”

In today’s discourse wealthy elites receiving $20 million a year in “capital gains” while paying almost no taxes are “producers,” while janitors or nursing home workers, working two jobs and not making enough to pay rent and feed themselves, are “moochers” and “freeloaders.” Right.

This email came in to CAF yesterday, (see also Richard Eskow’s take on it, John Galt Is A Crybaby And So Are You)

I am really curious to know what motivates the mind of a socialist. Why do you think its fair to penalize those of us who produce while rewarding those who do not? If healthcare should be a right then where does it stop?

Could one not use the same argument that everyone has a right to free housing? A free car? Perhaps free air travel? Who will pay for all this?

What happens when the government has exhausted the money acquired from the producers? I have a feeling producers will stop producing if the government is just going to take it. Again, I ask why should the people who produced be punished to reward free loaders?

Actually, a right to housing, health care and decent transportation sound like the kind of things that proud citizens in a democracy ought to demand, if you ask me.

The Ayn Rand Poison

This email and others like it echo the language of the novels of Ayn Rand, which so many Republican politicians today embrace. The people writing them are disciples of Ayn Rand. They used to be teenagers who resented being told to clean their rooms; now they are grownups who don’t want to be told to pay their taxes. Republicans have enthusiastically embraced the poison of Ayn Rand, its justification of psychopathic greed and selfishness, along with her belief that altruism and democracy are “evil.”

This Ayn-Randian idea that there are two kinds of people, “producers” and “parasites,” is reflected across the language of the right today. The wealthy “producers” are “job creators.” Republican Speaker of the House John Boehner, for example, regularly echoes this core philosophy of “producers” and “parasites,” saying,

I believe raising taxes on the very people that we expect to reinvest in our economy and to hire people is the wrong idea,” he said. “For those people to give that money to the government…means it wont get reinvested in our economy at a time when we’re trying to create jobs.”

“The very people” who “hire people” shouldn’t have to pay taxes because that money is then taken out of the productive economy and just given to the parasites — “the help” — meaning you and me…

Who Is The Real Freeloader?

With the release of his (but for some reason only the most recent) tax returns we learned that Mitt Romney collects over $20 million a year, while doing nothing, from the many millions he was able to get control of by stripping companies and laying people off or making them take huge pay cuts and loss of benefits. According to the Christian Science Monitor titled, What kind of society does America want?, this is the story of what happened to the workers in one company when the Romney/Bain machine “came to town”:

The new owner, American Pad & Paper, owned in turn by [Mitt Romney's] Bain Capital, told all 258 union workers they were fired, in a cost-cutting move. Security guards hustled them out of the building. They would be able to reapply for their jobs, at lesser wages and benefits, but not all would be rehired.

According to the cruel language of the right, those workers are “losers.” If they need to get unemployment or food stamps they are “parasites” and “freeloaders” who are “asking for handouts.” When old, they will need the Social Security and Medicare they paid into all their lives, more “handouts.” People like Romney says these “entitlements” — the things we are entitled to as citizens in a democracy — are “draining the economy.”

Mitt Romney says government is the culprit, not people like him who show up and strip our jobs, factories, companies, industries and economy. Romney, who pays very little in taxes on the $20-plus million he receives in “capital gains” every year, wrote in a December USA Today op-ed titled, What kind of society does America want? that the very existence of government itself costs the economy jobs, writing, “With the growth of government has come an inevitable contraction of the private sphere.” Romney writes that programs like Social Security and Medicare are examples of “government dependency.” And, finally, he writes, “Government dependency can only foster passivity and sloth.”

Right. Mitt Romney, producer — who receives $20-plus million a year for not working — as contrasted with the “losers” who work two jobs at minimum wage, making so little they need food stamps just to get by. (They used to make more, but Mitt Romney came to town, buying the company they worked for, chopping it up and sending the parts they don’t sell to China, laying them off or cutting their wages in half, and taking their health care and pension.)

The Dependency Index

The conservative Heritage Foundation has published an “Index of Dependence on Government,” saying we have “unsustainable increases in dependent populations.” Heritage writes that, “Americans are haunted by the specter of enormously growing mountains of debt that suck the economic and social vitality out of this country.”

Heritage fails to mention that we were paying off the nation’s debt before Bush’s tax cuts for the wealthy. In fact, at the rate we were paying off the debt when Clinton was President the entire US debt would have been paid off by now. Except for those tax cuts for the wealthy. But according to Heritage, the problem is not wealthy people paying very low taxes, it is humans who have human needs who are a “a potentially ruinous drain on federal finances.”

Please take a look at Heritage’s “dependency index.” Social Security is “government dependence.” Medicare is “government dependence.” And on and on. Heritage says nothing about the huge, bloated, corrupt, enormous, massive, ginormous military budget — that doubled under Bush. Heritage says nothing about the incredible subsidies government provides to oil and coal companies. Heritage says nothing about the cost of all of the tax cuts handed out to the wealthiest since the Reagan era. Nothing at all.

Heritage says that We, the People doing things for each other “encourages dependence.” They talk about people as if they are squirrels. Like building the interstate highway system encourages dependence or having good public schools encourages dependence or a pension after a life of hard work encourages dependence or public health programs that keep epidemics from spreading encourages dependence or giving vaccines to children encourages dependence or, I guess, in the old days helping a neighbor put up a barn encouraged dependence.

It is the Romneys, getting their $20-million-plus checks for doing nothing — the “gains” from stripping our economy and sending our jobs to China — who are dependent. Not the people that the Romneys threw out of work or cut their pay in half. Not the people working two jobs yet not making enough to pay rent and get enough to eat. The real “producers” in our economy are the 99%, the people who work, not the 1%er “parasites” who use their wealth and power and connections to game the system and reap vast “gains.”

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Johnson also is a fellow at the Commonweal Institute and a Senior Fellow at the Institute for the Renewal of the California Dream.

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Follow Dave Johnson on Twitter: www.twitter.com/dcjohnson

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. Sign up here for the CAF daily summary.

Another Washington Post Social Security Mistake

Dave Johnson
Fellow, Campaign for America's Future

See if you can spot the big mistake (giving them the benefit of the doubt) in this Washington Post story: Payroll tax cut raises worries about Social Security’s future funding:

This year, the Social Security system projects that it will pay out $46 billion more in benefits than it will collect in cash. It made up for the shortfall by redeeming Treasury bonds bought in years when there were cash surpluses.

Here is the mistake, thanks to Dean Baker: Social Security Is NOT Selling Government Bonds,

This is not true. The Social Security trust fund is projected to earn $114.9 billion in interest on the bonds it holds. It will use a portion of these earnings to pay current benefits. It will not be redeeming its bonds.

Social Security has a huge trust fund — if you think $2.6 trillion is huge. That trust fund is invested in US Treasury Bonds, and earns interest.

When you hear that Social Security is “in trouble’ or “going broke” you are hearing from people who ignore this huge, huge trust fund and the interest it earns. This trust fund, along with the money people pay in, means that Social Security has enough to pay full benefits until 2037. Even then it will still be able to pay everyone more than they receive today. (Yes, more, because of cost-of-living adjustments.) (more…)

Willard Mitt Romney Rails Against “Entitlement Society” — That Takes Chutzpa

By Robert Creamer
Political organizer, strategist and author

Earlier this week, Republican Presidential candidate Willard Mitt Romney delivered a speech framing the 2012 presidential election as a choice between an “entitlement society” and an “opportunity society.”

It really takes chutzpa for a guy who was born with a silver spoon in his mouth to rail against an “entitlement society.” Here is a guy who got his start in life the old-fashioned way — he inherited it.

Now I realize that you don’t get to choose your parents. He had no role in deciding that he would be born into the family of an auto executive and Michigan Governor — but at least he should have the decency not to attack “entitlements.”

This is not a guy who pulled himself up by his boot-straps. His name, his family connections and — not incidentally — his money gave him a real leg up when he decided to go into the investment banking business. And let’s not forget that when he did go into business for himself, he didn’t make money building things or inventing things — or designing new products. He made money buying companies, and often breaking them up, or firing employees.

Last Sunday’s New York Times reported that Romney continued to make money from his old firm Bain Capital through his time as Governor and his attempts to run for Senate and President. It noted that much of his income is likely taxed at only 15% — though we don’t know for sure since he refuses to release his tax returns.

He is the poster boy for the one percent — and he is talking about “entitlements”?

If you ask someone on the street which kid in high school Mitt Romney reminds him of, he is likely to tell you it’s the kid who drove to school in a Ferrari and got all the socially “in” girls. He was the smug guy who knew he was set for life. (more…)

Republicans Try to Convert America into Pottersville

In the iconic Christmas film, “It’s a Wonderful Life,” an angel offers the beleaguered main character, George Bailey, the stark choice between a hometown named for a cruel banker or one created by and for the middle class.

The banker’s town, Pottersville, is filled with bars, gambling dens and despair.  The people’s town of Bedford Falls is made of hope, hard working middle class families, and their homes financed by the Bailey Brothers Building & Loan.

The film’s happy ending is the people of Bedford Falls banding together to rescue George Bailey and the Bailey Brothers Building & Loan that had given so many of them a leg up over the years. Republicans seek a different conclusion.  They find middle class cooperation and community intolerable. They want the banker, Henry Potter, with his “every man for himself” philosophy to triumph. In the spirit of their self-centered mentor Ayn Rand, Republicans are trying to disfigure America so she resembles Pottersville.

A building and loan association, like the Bailey Brothers’, uses the savings of its members to provide mortgages to the depositors. Members essentially pool their money to give each other the opportunity to buy cars and homes. At one point in the film, George Bailey explains this concept to frightened depositors who are trying to withdraw their savings during the panic that led to bank runs in 1929.

Bailey urges the townspeople who had crowded into the building and loan office to withdraw only what they need, not empty their accounts. “We have got to stick together,” he tells them, “We have to do this together.” A building and loan doesn’t function without trust and cooperation.

It works well for Bedford Falls. The mortgages it provides help working people move out of the Potters Field slums and into Bailey Park, where homes well kept by their owners increase in value.  Despite the success, Potter condemned this practice, saying it was based on “high ideals without common sense.” He criticized the Bailey Brothers Building & Loan for granting a taxi driver a mortgage after Potter’s bank had rejected his application. Potter scoffed at such practices, asking if the building and loan was a “business or a charity ward.”

This is exactly what Republicans do. They describe beloved American programs like Medicare and Social Security as charities – using the euphemism “entitlements.” Like mortgages from the Bailey Building & Loan, Medicare and Social Security are not charities. They’re the American people depositing and pooling their money for the benefit of the American community.

The GOP tries to destroy programs like these that aid the middle class, the vast majority of Americans – the 99 percent – while Republicans protect tax breaks and special perks for the rich – the one percent, the Henry Potters. (more…)

How To Create 5 Million Jobs In Two Years

By Isaiah J. Poole
Executive editor of the blog site OurFuture.org

Congress could this week enact legislation, if it chose to, that would create more than 5 million jobs in the economy over the next two years. That works out to more than 208,000 jobs a month, well above the average of 132,000 jobs a month that have been created over the last 11 months of this year.

That’s the conclusion of an Economic Policy Institute analysis of the Restore the American Dream for the 99% Act, which was introduced in Congress Tuesday by the leaders of the Congressional Progressive Caucus. The EPI said that the key provisions of the bill “would increase nonfarm payroll employment by almost 2.3 million jobs in 2012 and almost 3.1 million jobs in 2013.”

Here’s how you create 5 million jobs in two years, according to EPI:

  • Authorizing a program of federally funded direct job creation would boost employment by approximately 1.1 million jobs in each of fiscal years 2012 and 2013. The Restore the Dream legislation would establish several “corps” of direct-hiring programs directed at such targets as youths in high unemployment areas; idle construction workers who could be deployed on school refurbishing projects; and laid-off police, firefighters, teachers and health care workers.
    (more…)

Social Security a Vital Government Program

Fifty years of my life I spent earning a living in various physical labor intense work, sometimes two even three jobs. I was a boomer who with only a high school equivalent was able to eke out a living. I ate the dirt of the earth to save a little money and buy a little house to live in for the rest of my life .I suffered broken bones and crippling injuries and lived in poverty many years of my life.

For 50 years I paid into Social Security while working with the belief the government was doing the right thing. As I aged and became proficient at my labor, I was able to raise the standard of living for my family and paid higher levels of my income into Social Security.

I am now 64, maimed and crippled for the rest of my life. My bones are weary and I am unable to do the heavy labor anymore

Now, my social Security is 60 percent of my monthly income, and I receive a small pension from 15 years of back breaking work in a steel mill.

The Social Security I paid my whole working life is now coming back to me, and I thank God that our government held to the Constitutional value of “‘promote the general welfare.” I was one of the uneducated masses that worked for the good of the country and family and community and did not understand the need for such a great social justice entitlement. Now, I understand, and the U.S. government under President Franklin D. Roosevelt got something right.

Not one person I have talked to has thought cuts to Social Security is the right way to go.  Social Security is not the problem. Sixty percent of our GDP goes to the military. That is what needs to be cut. Stop the wars and let’s put the warriors to work.

William Krebes
Hobart, Ind.
Retired Steelworker, Local 1014, U.S. Steel Gary Works

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Time to Retake Politics From the One Percent in Both Political Parties

By Dean Baker
Co-Director, Center for Economic and Policy Research, Author

The country is still celebrating the inability of the supercommittee to cut Social Security and Medicare, but it is important to move on from this victory to retake control of the political debate from the One Percent. As it stands, the One Percent are insisting that the country genuflect over the non-problem of the budget deficit, at a time when tens of millions of workers are unemployed or underemployed, millions of people are facing the loss of their homes and tens of millions of baby boomers are approaching retirement with little other than their Social Security to support them.

The deficit is the agenda of the One Percent. There is no reason that the rest of us should be concerned about budget deficits when the rest of the country is struggling with the economic disaster created by the greed and incompetence of the One Percent.

This is not a statement of morality; it is a statement based on economic reality. Budget deficits can be a problem when an economy is near full employment and the deficit can be pulling resources away from private investment, thereby slowing growth. However, it is not a problem with large numbers of unemployed workers and vast amounts of excess capacity.

This is what the financial markets are telling us every day as interest rates on long-term government bonds hover near 2.0 percent. If deficits were really crimping the economy, we would be seeing interest rates of 6 or 7 percent, or even higher. The deficit hawks do not have an economic case to support their argument, just money and influence.

In the longer term, the deficit hawks can point to projections of outsized deficits, which they invariably attribute to Social Security and Medicare. The first part of this story is completely untrue.

Under the law, Social Security is financed from its designated tax. It, therefore, cannot contribute to the deficit unless Congress changes the law. (The payroll tax credit in 2011, which was replaced with general revenue, is an exception to this rule.) (more…)

The 1 Percent Indifferent to Their Indebtedness

Most Americans, the 99 percent, feel the pressure of indebtedness. When they owe a friend a buck, their conscience bothers them until they’re square. They pay their bills, working second jobs if necessary. They meet mortgage obligations even when underwater.

That’s why there was a deficit Super Committee. Americans don’t like debt, including bills owed by their government. It weighs on them, even when it’s borrowing by Washington to create jobs and speed recovery.

But for the majority of millionaires – the 1 percent — incurring debt does not evoke anxiety. They’re numb to the feeling of responsibility that indebtedness induces in the 99 percent. They believe they owe nothing to their country or society despite all they’ve gained. They feel no duty to repay America for creating the environment that enabled them to amass all that wealth.

Thus the Super Committee failed.

The committee was searching for $1.2 trillion over 10 years. The Bush tax cuts, which disproportionately benefited the rich, cost $2.8 trillion over the past decade. But the 1 percent obstructed a return to the pre-Bush-balanced-budget-era tax rates and would sneer at the mere suggestion that they pay the much higher marginal rates the wealthy accepted after World War II to settle those government debts. In fact, Republicans on the Super Committee actually proposed additional tax cuts for the rich. (more…)

Giving Thanks for the Occupation, Election, Demonstrations

I want to thank you, thank you
Thank you, thank you,
Thank you, thank you,
Thank you, thank you. ~ Natalie Merchant, “Kind and Generous”

This week’s holiday mandates giving thanks. For many Americans, that is complicated by the harsh years since 2008.

There’s the bitterness of lost jobs, foreclosed homes and diminished opportunity.  There’s the resentment over bailing out Wall Street, then watching banksters grant themselves sensational bonuses while denying Main Street loans to save businesses.  There’s the fear generated by county club conservatives demanding draconian cuts to Social Security, Medicare and Medicaid.

It’s hard to muster gratitude while suffering, to feel appreciative while dreading a meaner future.

The past two months, though, produced glimmers of hope — the occupation, the election and the mid-November demonstrations. These events suggest empowerment of the 99 percent and emergence of change. They’re reason for thanks giving, especially by those formerly in the middle class who will for the first time experience this holiday without the traditional feast.

Change began in September with the launch of Occupy Wall Street. Previously, the disaffected had rallied and protested. The newly-homeless had held signs. The jobless had marched on Wall Street, the epicenter of the economy’s crash. But this was different. These rabble-rousers didn’t protest and go home. They dug in. They offered no end date for their cries for justice. Like the sit-down strikers who inhabited the General Motors plant in Flint, Mich. for 44 days in 1936 and 1937, these protesters are determined to stay as long as necessary.

The New York occupiers’ gumption and message – “we are the 99 percent” — inspired a movement worldwide. Activists encamped in more than a 1,000 cities. And when police tried to rout them, the occupiers defied the official oppression, just as the sit-down strikers did. Emblematic is the 84-year-old Oakland, Calif. protester who said after police pepper sprayed her in the face that the experience energized her.

Before this movement began, country club conservatives had confined political discussion and concern to government deficits. No one acknowledged the unemployed, the impoverished or the foreclosed on – except to condemn them. The occupations changed this. Suddenly, the media talked of the problem of sharply higher income inequality and wrote about highly profitable corporations dodging taxes. Abruptly, politicians recalled the agony of joblessness and homelessness. Amazingly, there was new emphasis on polls showing massive majorities opposing austerity for the 99 percent and supporting higher taxes on the 1 percent.

For those of us in warm homes, Natalie Merchant’s words send a perfect message to those encamped:

“For your kindness, I’m in debt to you,
And I could never have gone this far without you,
For everything you’ve done,
You know I’m bound – I’m bound to thank you for it.”

On Election Day, the majority put the 1 percent and their purchased politicians on notice. The problem for the 1 percent in a one-person-one-vote democracy is that they’re outnumbered. In referendums on Nov. 8, the majority rebuffed attempts to restrict the ability of citizens to vote and to collectively bargain.

Mainers reversed a Republican attempt to limit balloting. The majority there restored Election Day voter registration – a right they’d exercised without problem for 38 years before the state’s GOP-dominated legislature and GOP governor passed a law eliminating it. The 60 percent vote for reinstatement served as public censure to Republican lawmakers nationwide who have worked to suppress voting.

In Ohio, citizens reversed a Republican attempt to sharply constrict the right of public employees to collectively bargain for better wages, benefits and working conditions.  Ohio citizens affirmed their belief in unionization as a way to move workers into the middle class. The vote was 61 percent in favor of union rights, a margin that chastened country club conservatives, including Ohio’s GOP Gov. John Kasich, who said afterwards that he would “pause” to reflect because: “The people have spoken clearly. You don’t ignore the public.” (more…)

Why We May Be In Store for a Passionless Presidential Race

By Robert Reich
Former U.S. Secretary of Labor, Professor at Berkeley

Polls show Americans angrier and more polarized than at any time since the Vietnam War. That’s not surprising. We have the worst economy since the Great Recession and the worst politics in living memory. The rise of the regressive right over the last three decades has finally spurred a progressive reaction. Occupiers and others have had enough.

Yet paradoxically the presidential race that officially begins a few months from now is likely to be as passionless as they come.

President Obama will be supported by progressives and the Democratic base, but without enthusiasm. His notorious caves to Republicans and Wall Street — failing to put conditions on the Street’s bailout (such as demanding the Street help stranded home owners), or to resurrect Glass-Steagall, or include a public option in health care, or assert his constitutional responsibility to raise the debt limit, or protect Medicare and Social Security, or push for cap-and-trade, or close Guantanamo, or, in general, confront the regressive Republican nay-sayers and do-nothings with toughness rather than begin negotiations by giving them much of what they want — are not the stuff that stirs a passionate following. (more…)