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Sen. Elizabeth Warren Opposes Cut to Social Security; U.S. Sen. Elizabeth Warren (D-MA); Progressive Democrats of America – PA 12th CD Chapter; April 10, 2013.
The “article” is an e-mail note Sen. Warren allegedly wrote to her followers.
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“Hi everyone,
“My brother David has always had the special spark in our family.
“Like our two older brothers, David served in the military. When he got out, he started a small business — and when that one didn’t work out, he started another one. He couldn’t imagine an America where he wasn’t living by his wits every single day.
“Year after year, my brother paid into Social Security. He never questioned it. He figured he was paying so that he — and a lot of other people — could have a secure retirement.
“Today my brother lives on his Social Security. That’s about $1,100 a month. $13,200 a year.”
[RWC] As for “a secure retirement,” if you plan on Medicare and SS benefits to provide a high percentage of your livelihood during retirement, you plan to live in poverty. Even the SS Administration tells people not to depend on SS as their sole source of income.
“I’m telling you my brother’s story not because it’s unusual, but because it’s like the story of so many other people. I can almost guarantee that you know someone — a family member, friend, or neighbor — who counts on Social Security checks to get by.”
[RWC] According to her financial disclosure report dated 12/22/11, Sen. Warren is a very wealthy person. Are we to believe Mrs. Warren doesn’t help her brother?
Another interesting point is Mrs. Warren still owes Harvard University for a 1996 “Educational Loan” of “$15,001 - $50,000” with an interest rate of “0%.” I don’t know why a wealthy person like Mrs. Warren would still owe on an “Educational Loan,” but here’s one potential reason. With a “0%” interest rate, the longer you hold off paying the better because you get to pay with cheaper dollars. According to the BLS CPI Inflation Calculator, a 2013 dollar would be worth only $0.68 in 1996. Therefore, if you paid off a 1996, zero-percent $50,000 loan entirely with 2013 dollars, that would be like paying off the $50,000 loan in 1996 with only $34,000.
“That’s why I was shocked to hear that the President’s newest budget proposal would cut $100 billion in Social Security benefits. Our Social Security system is critical to protecting middle class families, and we cannot allow it to be dismantled inch by inch.”
[RWC] As you will read below, if Mrs. Warren were interested in presenting facts correctly and in context, she would have written, “That’s why I was shocked to hear that the President’s newest budget proposal would cut $100 billion in EXCESS Social Security benefits.”
Mrs. Warren intentionally failed to note the alleged “cut [of] $100 billion in Social Security benefits” is over 10 years. The President’s proposed fiscal-year 2014 budget shows SS spending of $860 billion in 2014 and increasing to $1,427 billion in 2023, a total of $11,247 billion ($11.2 trillion) over those 10 years. That means an alleged cut of $100 billion out of $11,347 billion is only about 0.9%.
“The President’s policy proposal, known as ‘chained CPI,’ would re-calculate the cost of living for Social Security beneficiaries. That new number won’t keep up with inflation on things like food and health care — the basics that we need to live.”
[RWC] Where did worries about “inflation on things like … health care” come from? I thought Obamacare took care of that.
“In short, ‘chained CPI’ is just a fancy way to say ‘cut benefits for seniors, the permanently disabled, and orphans.’”
[RWC] The feds use the Consumer Price Index (CPI-U or CPI-W depending on the program) to adjust benefits to account for inflation (cost of living adjustments, aka COLAs). Since at least 1996 we’ve known the current CPI calculations overstate inflation by just over one percentage point. As a result, beneficiaries receive greater benefits than they should. The “chained CPI” is supposed to be a more accurate method of calculating the impact of inflation. If this analysis is correct, no one is “cut[ting] benefits for seniors, the permanently disabled, and orphans;” the new calculation is simply correcting current CPI calculation errors.
“Two-thirds of seniors rely on Social Security for most of their income; one-third rely on it for at least 90% of their income. These people aren’t stashing their Social Security checks in the Cayman Islands and buying vacation homes in Aruba – they are hanging on by their fingernails to their place in the middle class.”
[RWC] As I noted above, if you plan on Medicare and SS benefits to provide a high percentage of your livelihood during retirement, you plan to live in poverty. Even the SS Administration tells people not to depend on SS as their sole source of income.
“My brothers and I grew up in an America that invested in its kids and built a strong middle class. An America that allowed millions of children to rise from poverty and establish secure lives. An America that created Social Security and Medicare so that seniors could live with dignity.”
[RWC] The creators of Socialist Security and Medicare didn’t do so “so that seniors could live with dignity.” Socialist Security and Medicare were always about politics, not concern for the elderly.
Unlike Mrs. Warren, I don’t believe depending on government – or anyone – for income and medical care is “living with dignity.”
“We can’t chip away at America’s middle class and break the promise we make to our seniors.
“Thank you for being a part of this,
“Elizabeth
“(Sen. Elizabeth Warren)”
[RWC] In Peace, Friendship, Community, Cooperation, and Solidarity. <g>
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