Strengthen Social Security

Last night the President took a lofty, almost disinterested stance regarding budget deadlock in Congress. He seemed to chastise Sen. Majority Leader Harry Reid and House Speaker John Boehner equally, focusing on the consequences of a shutdown and ignoring the consequences of making a bad deal to avoid a shutdown.

A Federal shutdown would have "real consequences for real people," said the President, mentioning one "real" person by name: J.T. Henderson of Louisville, Kentucky.

So let's talk about J.T. Henderson - and about all the other J.T. Hendersons who are just as real, and just as important, as our friend in Louisville. You'd be surprised how many there are.

Meet the Hendersons

Who wasn't the President talking about when he mentioned the name "J.T. Henderson" last night?

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Rep. Paul Ryan's getting a lot of attention for a chart he's using to publicize the new Republican budget:

You know what's funny? I was just projecting the effect of that budget on the average retiree's household budget:

I wish I were kidding, but I'm not. These are the real numbers. The two charts look alike, but they tell very different stories.

The green ink shows the income you would have after retirement under the current system, which comes with guaranteed Medicare coverage. The red ink shows just how much you'll be in the red if the Republican budget is put into place. Even if you turned your whole Social Security check over to the health insurance company, it wouldn't be enough. If you wanted Medicare-like coverage you'd be forced to give a private insurance company tens of thousands of dollars more in premiums than you'll receive in Social Security and "voucher" benefits.

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Back when I analyzed health plans and other benefits for a living, I asked a famous CEO what his goals were for the corporation's employee benefit plan. "I want to give them less and make them think it's more," he said.

The new Republican budget proposes to radically restructure the country's relationship with its citizens. They're using bogus economics to confuse people into thinking these extreme cuts will somehow leave them more money. But they're really offering less - much less.

We'll deal with the politics later. The policy is astounding enough. But we'll throw in a little context: The top 25 hedge fund managers made a collective $22 billion last year. If they had been taxed under the same rules as cops, firefighters, nurses, and teachers, and if the President's proposed tax changes for the wealthiest earners had passed, these 25 people alone might reduced the Federal deficit by more than five billion dollars in a single year! But Rep. Ryan and his party prevented that from happening.

"Party of deficit reduction"? Gosh, I don't think so.

A Radical Attack

Since all the specifics aren't in, we ran some rough preliminary numbers. Here's what we found: Within ten years of this plan taking effect, most Americans would be spending all of their Social Security income just to pay for their health care or going without coverage.

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The mortgage crisis in this country doesn't get much attention in Washington these days, but it's huge. It's so huge, in fact, that it dwarfs most of the economic issues that have Washington in their grip. It's so huge that it's dragging down our entire economy. It's so huge that the numbers can be difficult to picture.

The scale of the crisis is, in a word, staggering.

Here are seven charts (and another that was borrowed from the Wall Street Journal) along with some facts and figures that will help sketch out the scope of the problem. The numbers that follow are most likely understated, if anything, because we've left out some forms of reduced spending (like that which takes place when homeowners who have paid off their mortgages lose home value.)

The budget cutters push the idea that there's a dichotomy between the heart and the brain, and that they're on the "brain" side. But the numbers don't lie: Ignoring the foreclosure crisis is both heartless and brainless.

See for yourself.

By the time you read this ...

How big is the mortgage crisis? Pick an adjective: astronomic, colossal, enormous, gigantic, ginormous, humongous, jumbo, mammoth, massive, monstrous, mastadonic, monumental, prodigious, tremendous, vast, very big, very large, whopping. Here's how big it is. Let's assume that you're reading these words one day after I wrote them. That means that:

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One group of senators is determined to cut Social Security benefits. Another is equally determined to stop them. And nearly two-thirds of the Senate signed a letter that took a clear stand in favor of ... well, it's not exactly clear what they want. It's been a battle royale on Capitol Hill.

Now Harry Reid is stepping into the ring.

Reid was an amateur boxer in college, although his current job as Senate Majority Leader usually requires him to act more like a referee. It looks like that may be about to change. more »

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Scientists say there are trillions of parallel universes. Statistically, that means that must be one where some poor version of humanity lives in an inverted, mind-bending alternate reality where everything is backwards and nothing makes sense.

But why did it have to be us?

Consider the latest evidence: 64 Senators are ignoring the one problem that polls consistently show is the public's highest priority. Instead they've written a letter to the President asking him to make a different issue his highest priority - and to address it by doing something the public doesn't want. In return they're promising that they'll do something the public doesn't want, too.

Welcome to reality.

You can see the original letter here. Then you can keep reading to see what that letter would say in a rational universe. more »

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Charles Krauthammer wants you to know two things: There's no "lockbox" for Social Security and there's no such thing as a free lunch. He's wrong about Social Security, but first things first: Let's do lunch.

Here's Krauthammer last Thursday, rebutting White House Budget Director Jack Lew: "There is no free lunch." And here's Krauthammer in 2004, in a piece called "Tax and Drill": "There is no free lunch." And in 2009, writing about the health care bill: "...(I)n medicine, as in life, there is no free lunch."

And here's Krauthammer in June of 2007, saying that politicians will never support a gas tax because it would be "too honest and open an acknowledgment that there is no free lunch." He says in the same piece that ethanol is "another free lunch," and bemoans Congress' desire to "perpetuate the fantasy of the tax-free lunch." (The piece was called "The Tax-Free Lunch.")

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SoSome politicians are so determined to serve their corporate patrons that even disasters like Fukushima can't lessen their anti-government zeal. The expression for that kind of determination is "Come hell or high water." Now, thanks to deregulation and government downsizing, we've seen both.

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Today we saw state troopers in Madison tearing peaceful protesters out of their own capitol after the Senate voted to deprive them of their rights.  Video footage of that event should come with a label:  Brought to you by the State of Wisconsin, a wholly owned subsidiary of Koch Industries.

Right now Wisconsin is serving as the prototype for United States 2.0, a newly reconstituted nation where corporations have all rights of personhood without any of the responsibilities - and people have all the duties of personhood without any of the rights.

Welcome to your future.  They're preparing it for you right now in America's heartland. more »

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The phrase "Moment of Truth" first appeared in English in Ernest Hemingway's Death in the Afternoon. It was originally a Spanish expression for for the final sword-thrust in a bull-fight, the one that finishes off the bull after the matador is done taunting and tormenting him.

Remember that whenever you hear about "The Moment of Truth Project," the latest public relations venture from the Social Security-slashing Pete Peterson crowd. It could be el momento de verdad for your future financial security.

Orwell's Children

If the phrase also reminds you of the reality-twisting "Ministry of Truth" from Orwell's 1984, that's appropriate too. A highly-financed network of consultants, ex-government officials, and politicians has been deployed to mislead the public on basic, unequivocal truths about Social Security, whose$2.6 trillion dollar trust fund could bankroll a lot of tax breaks for the wealthy. All it takes is a campaign to mislead and confuse the public.

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