VeeJay says, "Who is Holly Sklar?" Holly Sklar says: "I may have mentioned I often lend my services to certain financial
institutions and, since the early 90's, at least 80% of the quarterly
retirement investment newsletters I've helped turn into Spanish
dropped some story or hint about how Social Security is doomed to
dwindle and die of thirst, how they cannot count on it. The
regularity of these droppings became so predictable that at some
point I refused to believe they were coincidental. A perspective is
in order: a couple of years ago a monstrous tax cut for the
monstrously rich was passed, the scope of which in deficitary terms
is thrice the amount of long term projected Social Security deficit.
I am yet to see this mentioned even once in those educational
materials that keep coming up every quarter. Do your own reckoning." For less disneysian explanations of the drug prescription bill and
the social security "crisis" (oh those spooky legions of seniors
blackmailing Congress and sucking the country dry with their $900 a
month SS payments!) you may wish to look here:
Medicare Drug Bill:
www.zmag.org/ZMagSite/Jan2004/sullivan0104.html
On Social security, I've received this just a few hours ago, fresh
from the press:
Social Security isn't broke, but millions of retirees who depend on
it are, and many more would be broke without it.
The average retired worker's Social Security benefit is just $922 a
month--about $11,000 a year. Disabled workers average just $862.
One out of three seniors depends on Social Security for 90 to 100
percent of their income. Two out of three seniors depend on it for
more than half their income. Even with Social Security, many seniors
find themselves choosing between eating and heating, paying the
mortgage or paying for medicine.
With Federal Reserve Chairman Alan Greenspan's help, the Bush
administration would rob retirees to pay for tax cuts for the rich.
Greenspan recently urged Congress to reduce Social Security benefits
and raise the retirement age (now 65 to 67 depending on birth year)
rather than roll back the tax cuts, which are the main cause of
growing budget deficits. While Greenspan turned 78 on March 6, the
life expectancy of white males born in 2000 is just 74.9 years. For
black males, it's just 68.6 years. For all American men, life
expectancy at birth was 61.6 years in 1940, 65.5 in 1950 and 66.8 in
1960.
Keep those life expectancies in mind when you hear calls to raise the
retirement age to 70 or higher. And keep in mind the workers in
physically debilitating jobs, the growing numbers of workers without
health insurance or pensions, and high unemployment and
underemployment rates in today's workforce.
Since 1983, the government has collected much more from Social
Security taxes than it pays out in benefits in order to build up a
surplus for the baby boom retirement.
Contrary to common belief, Social Security benefit payments will not
begin to exceed Social Security tax revenue until at least 2018.
Trustee projections show that the Social Security trust funds, now
about $1.5 trillion, will keep Social Security fully financed until
the year 2042--nearly four decades from now. That's using pessimistic
economic assumptions. The Social Security outlook has improved over
time as reality has beaten past projections.
Most Americans pay more in payroll taxes than income taxes. The
Social Security payroll tax takes a bigger share out of low- and
middle-income paychecks than high-income ones because earnings above
$87,900 are exempt.
Removing this cap would erase most of Social Security's projected
future revenue shortfall.
The cost of the tax cuts enacted in 2001-2003 is nearly three times
greater than Social Security's projected deficit for the next 75
years. That's according to unpublished new estimates from the Center
on Budget and Policy Priorities, which also show that the cost of the
tax cuts is larger than the combined projected deficits in Social
Security and Medicare.
It's obscene to consider cutting Social Security benefits while
giving tax breaks to the rich. The average 2004 tax cut for the
richest 1 percent--$59,292--is more than five times greater than the
average retired worker's Social Security benefit.
Imagine that your town's wealthiest family throws a lavish party
costing many times more than your annual income. You're not invited,
but you get the bill. Worse, they plan to throw increasingly lavish
parties every year and want you to shortchange your family, cash in
your savings and postpone retirement to pay for them. You'd be
outraged.
Between 2001 and 2010, tax cuts for the richest 5 percent of
Americans will cost $1.7 trillion, reports Citizens for Tax Justice.
That's more than the Social Security trust fund assets.
Social Security is popular and politicians who want to kill it can't
say that. Instead, they manufacture a "crisis" and offer to fix it
with cuts and privatization--a cash cow for Wall Street.
They want you so scared Social Security won't be there in the future,
you'll let them make that a self-fulfilling prophecy. Don't get duped.
Roll back tax cuts for the rich to reduce the budget deficits, not Social Security.

aisethefloor.org/pub.html
Holly Sklar is coauthor of "Raise the Floor: Wages and Policies That
Work for All Of Us"
www.raisethefloor.org/
About the authors: Holly Sklar.
Holly Sklar's standout commentaries on economic and political affairs have appeared in
hundreds of newspapers nationwide. She is the coauthor of Shifting Fortunes: The Perils
of the Growing American Wealth Gap and author of Chaos or Community? Seeking Solutions,
Not Scapegoats for Bad Economics. Sklar's other books include Streets of Hope: The Fall
and Rise of an Urban Neighborhood (coauthored), the remarkable story of how the Dudley
Street Neighborhood Initiative is rebuilding a long impoverished Boston community as a
dynamic urban village. Sklar is the director of MediaVision, a strategic research,
analysis and communications firm based in Boston. Email: hsklar@aol.com.
Laryssa Mykyta.
Laryssa Mykyta is a senior policy analyst at Solutions for Progress. While her primary
interest lies in labor market policy and effective anti-poverty policy, she has also
applied her research and database management skills to projects on health care and
education policy. Mykyta's past research addressed the effects of inequality on labor
market outcomes for female and minority workers and examined the impact of racial
divisions on society. Mykyta also teaches at Temple University where her courses
include "Women and the Economy." Email: lmykyta@solfopro.com.
Susan Wefald.
Susan Wefald is director of institutional planning at the Ms. Foundation for Women and
coordinator of the Raise the Floor campaign. Wefald previously ran a community
development consulting business, where she conducted training in the U.S. and Russia.
As former staff director of the Naugatuck Valley Project, Wefald coordinated the
organizing and economic development work of a coalition of unions, churches and
community organizations in Western Connecticut. She is the former assistant director of
the Urban Homesteading Assistance Board and taught "Community Organizing and Community
Economic Development" at New Hampshire College. Email: swefald@ms.foundation.org.
More at: www.raisethefloor.org/pub_authors.html |