Misinformation Mania

progressreport.org

3/11/2005

SOCIAL SECURITY
Misinformation Mania

With White House privatization plans seemingly locked in a tailspin
(http://www.washingtonpost.com/wp-dyn/articles/A25304-2005Mar10.html) ,
conservatives are winding up their mighty howitzer of misinformation
with one goal in mind: confusing Americans about the fundamental choices
regarding retirement security. Some of their claims are so outlandish
that a rebuttal seems unnecessary -- take the new study blaming Social
Security for hastening the decline of marriage
(http://www.buffalo.edu/news/fast-execute.cgi/article-page.html?article=71830009)
, or President Bush's claim yesterday that private accounts would "
provide a safety net for future retirees
(http://www.kentucky.com/mld/kentucky/11101583.htm) ." Others have the
potential to seriously mislead Americans about the president's plans.
Below are five seriously specious claims to watch out for:

RED HERRING ALERT -- THE "ADD-ON" MYTH: Last Friday, President Bush
blurted "out something that sounded an awful lot like news" when he
described his version of private accounts as "an add-on to that which the
government is going to pay you." The truth: the "add-on" model of private
accounts -- creating an additional program completely apart from Social
Security -- is the polar opposite of the president's risky "carve-out"
privatization scheme
(http://www.washingtonpost.com/wp-dyn/articles/A14005-2005Mar7.html) ,
which funds private accounts by raiding current Social Security payroll
taxes. To see what a real add-on program looks like, see this report by
American Progress fellow Gene Sperling
(http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=289151) .

RED HERRING ALERT -- "BUT IT'S NOT PRIVATIZATION!": In his latest
weekly e-mail, privatization pusher Rep. Allen Boyd (D-FL) claimed that
"Many who oppose reforming the Social Security program have falsely
claimed that personal accounts would lead to the privatization of Social
Security
(http://www.talkingpointsmemo.com/archives/week_2005_03_06.php#005097)
." Sorry, but that line shouldn't fool anyone. "Personal" accounts
carved out of Social Security are precisely what economists, analysts, and
politicians -- including President Bush
(http://thinkprogress.org/index.php?p=165) -- have always meant by
privatization.

RED HERRING ALERT -- CONSERVATIVE "COMPROMISE": Last week, two allies
of President Bush
(http://www.washingtonpost.com/wp-dyn/articles/A10396-2005Mar5.html)
offered up so-called "compromise" plans, attempting to corral pro-Social
Security progressives who are actually interested in seriously
addressing retirement security. A closer look reveals the plans are merely "
Tangerine and Strawberry phase-out [plans] to be added to the plum
version the president has already put on the table
(http://www.talkingpointsmemo.com/archives/week_2005_03_06.php#005071)
." Like the president's plan, both include massive, budget-busting
transition costs, cuts to traditional Social Security benefits, and risky
private accounts (One plan even raises the normal retirement age to 72
years old!).

RED HERRING ALERT -- "ALL OPTIONS ARE ON THE TABLE": President Bush is
firmly dedicated to pushing privatization. He continues to repeat the
mantra that " all options are on the table
(http://www.whitehouse.gov/news/releases/2005/03/20050310-14.html) ,"
suggesting yesterday that he was the first president in history to take
such an approach. The truth: The only option now on the table is the
phase-out of Social Security through private accounts. Just this week, top
White House economic adviser Allan Hubbard "rejected as ' absolutely a
non-starter
(http://www.usatoday.com/news/washington/2005-03-10-1A-hubbard_x.htm) '
bipartisan proposals that the administration put aside its drive" to
create private accounts in favor of "add-on" versions.

RED HERRING ALERT -- "IT'S ABOUT THE SOLVENCY": Hubbard also claimed on
Monday that " President Bush's No. 1 goal is passing legislation that
permanently solves the solvency problem
(http://www.usatoday.com/news/washington/2005-03-10-1A-hubbard_x.htm) ."
Looks like Hubbard spoke too soon. Earlier this week, Government
Accountability Office chief David Walker testified before the House Ways and
Means Committee that the president's private accounts " wouldn't shore
up the system
(http://www.kansascity.com/mld/kansascity/news/politics/11092857.htm) "
and would actually " 'exacerbate' the system's problems
(http://www.kansascity.com/mld/kansascity/news/politics/11092857.htm)
and accelerate the date for when it would start spending more on pension
benefits than it receives in annual revenue."