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May 25, 2020

Amid Economic Crash, Kushner Tries To Kill Social Security

Filed under: Economics, Fascism, Greed, Health, Memes, News, Political, Questions, Reason — Scottie @ 11:49

Turning Social Security from guaranteed insurance into a private account is a longstanding goal of Wall Street billionaires. Right now, Wall Street gets no money from Social Security. But if it were converted into hundreds of millions of private accounts, Wall Street would reap huge profits.

President George W. Bush infamously attempted to convert Social Security into a piggy bank for Wall Street, and was resoundingly rebuked by the American people in the 2006 midterm elections. Given this unpopularity, proponents of privatization are using sneaky backdoor tactics instead. [Trump himself continues to insist he won’t cut Social Security benefits.]

Back in 2018, Ivanka Trump released a parental leave plan with Senator Marco Rubio (R-FL). They referred to this proposal as “paid leave,” but it actually asked parents to fund their own leave by forgoing future Social Security benefits. The plan was developed by the Independent Women’s Forum, a Koch Brothers-funded think tank whose president eagerly anticipated that it would be a first step toward privatizing Social Security.

The so-called “Eagle Plan” is strikingly similar to Ivanka’s fake paid leave plan, but even more cruel in the choice it would foist upon people in the middle of a pandemic. With over 32 million people newly unemployed, families across the country are in desperate need of income. Thanks to the Trump administration’s utter failure to manage the pandemic by implementing a widespread testing and tracing program, that desperation isn’t going away any time soon.

Yet the United States remains the wealthiest country in the history of the world. Congress just gave corporations a $4.5 trillion bailout. We can easily afford to both send families the income they need and expand their future Social Security benefits. Congressional Democrats are proposing to do just that by sending everyone in America $2,000 every month for the duration of the coronavirus crisis, while also expanding Social Security.

More at the link above

 

 

5 Comments »

  1. Scottie, your first two sentences speak volumes. Social Security provides a defined benefit that helps many who are not financial savvy. It is a social insurance program that provides a larger benefit as a percent of pay for those who make less. Efforts to privatize it will unwind some of this impact. With huge move away from defined benefit pension plans, the 401(k) and 403(b) plans have tried to take up the slack, but many do not participate because they feel they will think about retirement later. That is a mistake – they need to save now.

    By the way, on this subject, let me take the time to mention the self-professed man-of -the-people unwound a requirement that all financial advisors be fiduciaries. Since many in the industry did not like this, he did away with it. What does being a fiduciary mean? It requires the advisor to act in only your best interests. In other words, the man-of-the-people hosed them again. Kushner is no better than is corrupt and deceitful father-in-law.

    Keith

    Liked by 1 person

    Comment by Keith — May 25, 2020 @ 14:40

    • Hello Keith. I agree with everything except the part of the 401. Defined benefit plans are what gave our parents in my age bracket, the older boomers such a great retirement. Even in the recession of the 1970’s working people had more disposable income than people had in the last decade. 401ks do not even come close. Plus most people today and for the last 20 years can not afford to put any of their income into a 401K. Seriously if you are making below poverty level income, if you get minimum wage or a few dollars above it, you need every cent to simply live. You have no chance or ability to save. Plus now Social Security has fallen way behind so it doesn’t even offer a living retirement with older people having to choose between their medications and food. I live in an older lower income mobile home park. I have seen the elderly here get farther and farther behind until they have no choice but die, or sell for what little they can get and move home to live with children. Those that did not have that option simply stopped taking their medications and died. What is happening to the elderly and poor in this country is a crime, a shame, and it angers me we are looking at the first trillionaires in the US when so many of my neighbors can not afford their insulin or other medications, food, and pay for their unities. Hugs

      Like

      Comment by Scottie — May 25, 2020 @ 16:35

      • Scottie, I think we are saying the same thing. DB plans provided a needed supplement to Social Security. Doing away with them hurt people. Many large employers added a 401k for years, then even they cut back on their pension plans or did away with them. The answer is both are needed, but unless you work in government, hospitals, or associations, you will likely not see a DB plan.

        Changing Social Security in the manner Kushner needs to be only considered in part or not at all. I would be leery of anything that Trump came up with as most of his changes have helped a wealthier class. Keith

        Liked by 1 person

        Comment by Keith — May 25, 2020 @ 17:09

        • Hello Keith. I agree with you on any Republican plan or proposed bill, they seem to either ignore the lower incomes or actively work to harm them. They seem to have a hatred for anyone not wealthy.

          As for DB plans, I was not aware any company offered them any more. Even in the hospital Ron works at only offers a 401K and I think they do not even match deposits any more.

          Republicans in congress should be smart enough to realize the more buying power people in the country have the greater the economy will be. There are far more lower incomes than wealthy. If the lower incomes can buy, the economy grows. Yet Republicans in government do everything they can to deprive lower incomes of any resources or fund. Hugs

          Like

          Comment by Scottie — May 26, 2020 @ 07:49

          • Scottie, your last paragraph supports the conclusions of the book “Capital.” America’s greatest economic growth period came with a thriving middle and lower-middle classes. Since the early 1980s, with the Reagan tax cut and greater use of stock options, put one arm straight out and put the other arm at a 45 degree angle. The angled one is the growth in income for the upper middle class, with the straight the growth in income for everyone else. Keith

            Liked by 1 person

            Comment by Keith — May 26, 2020 @ 07:54


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