The Iceberg Cometh
by Paul Krugman

Last week someone leaked a memo written by Peter Wehner, an aide to Karl Rove, about how to sell Social Security privatization. The public, says Mr. Wehner, must be convinced that "the current system is heading for an iceberg." It's the standard Bush administration tactic: invent a fake crisis to bully people into doing what you want. "For the first time in six decades," the memo says, "the Social Security battle is one we can win." One thing I haven't seen pointed out, however, is the extent to which the White House expects the public and the media to believe two contradictory things. The administration expects us to believe that drastic change is needed, and needed right away, because of the looming cost of paying for the baby boomers' retirement. The administration expects us not to notice, however, that the supposed solution would do nothing to reduce that cost. Even with the most favorable assumptions, the benefits of privatization wouldn't kick in until most of the baby boomers were long gone. For the next 45 years, privatization would cost much more money than it saved.

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Survivor Benefits - Not Just For Reality Show Winners:

When the Rude Pundit was an adolescent, his father died. His family, which had worked its way out of welfare, food stamps, and a very nice mobile home park, would have been crushed had it not been for one simple thing: the survivor benefits of the Social Security system. It wasn't a fuck of a lot of money, but between survivor and dependent benefits, the Rude Pundit wasn't sent off to live with creepy Uncle Marvin and his cold, cold fingertips. It was enough to pay the rent. It was enough to supplement Mama Rude's income. See, caught up in the whole debate about privatization is the fact that, really, retirement benefits only make up a portion of what Social Security pays out. In fact, between survivor and disability benefits, retirement makes up a smaller part of the SS pie than you might imagine. Says reader David S, who was a claims rep for Social Security for 17 years, "Social Security is a social insurance system, with roughly 1/3 of payments going to the severely disabled and 1/3 going to survivors, and 1/3 going to retirees. Any disciplined fool could take the money and beat the retirement benefits today (though that wasn't true in the past), but it would take an astute person to beat the whole package. Disability coverage is freakin' expensive, and your Bushie investment plans aren't going to be much use for that." But we're not hearin' a fuck of a lot about disability and survivor benefits. Certainly not in the "Ask the White House" online chat with Special Assistant to the President on Economic Policy Chuck Blahous, who created the new mantra, "The President does not want to privatize Social Security," even though Bush does want private individuals to control where a private portion of their private Social Security is privately invested. And Blahous has a doctorate in Computational Quantum Chemistry from Berkeley, so random sequences of bizarre numbers are right up his alley.

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  thanks to Bad Attitudes