The coming Social Security fight: Why large private foundations are undemocratic

[Hannah Bell]

The powers that be are getting ready to destroy Social Security in the name of saving it. Several large, private, supposedly 'liberal' foundations are helping with the effort.

William Grieder reports:

"The ugliest ploy in their campaign is the effort to provoke conflict between the generations.
'The automatic funding of Social Security, Medicare and Medicaid impedes explicit consideration of competing priorities and threatens to squeeze out spending for young people,' these economists declared.

Children, it is suggested, are being shortchanged by their grandparents. This line of argument has attracted financial support from some leading foundations usually associated with liberal social concerns--Annie E. Casey, Charles Stewart Mott, William and Flora Hewlett. Peterson has teamed up with the Pew Trust and has also created front groups of 'concerned youth.'"

http://www.thenation.com/doc/20090302/greider/2


Splitting support for Social Security by dividing the generations was a tactic laid out in the influential 1983 Cato Institute paper "Achieving a 'Leninist' Strategy":

"Before Social Security can be reformed, we must begin to divide this coalition
and cast doubt on the picture of reality it presents to the general public....

...Interest groups concerned with Social Security reform can be divided
into the young, the middle-aged working population, and the retired
or those nearing retirement. Of these, the young are the most obvious
constituency for reform and a natural ally for the private alternative.

...Discontentment will only grow as the taxes needed to support the system
continue to rise, and as the prospects for a reasonable return on one’s
'contribution' continue to fade."

http://www.cato.org/pubs/journal/cj3n2/cj3n2-11.pdf


Make no mistake: this was not an academic paper. The tactical recommendations in it have been put into place, starting with the expansion of IRAs & other potential SS substitutes (401Ks, anyone?).

The groundwork for generational conflict has been laid. Most young people will tell you they don't believe SS will be there for them (thanks to having the idea drummed into them via media.) SS tax rates of 6.2% - about 1% in excess of current payout requirements for the last 25 years - & poor career prospects for recent cohorts also fuel dissatisfaction & willingness to buy into alternatives.

Lenin, the authors of the 1983 paper conclude, advocated stealthily laying the groundwork & support for the change you desire, so that when a crisis point emerged, you'd be ready to move in to take advantage of it:

"The next Social Security crisis may be further away than many people believe.
...it could be many years before the conditions are such that a radical reform of Social
Security is possible. But then, as Lenin well knew, to be a successful
revolutionary, one must also be patient and consistently plan for real
reform."


The latest crisis point is upon us, & not surprisingly, despite the meltdown of pensions, 401Ks & jobs, the Social Security vultures are on the case. Conservative foundations have funded the anti-Social Security meme for a long time, but the entry of supposedly liberal foundations into this area is something relatively new, & signals the support of liberal elites for scaling back Social Security.

That they choose to enter the fray by pitting the young against the old demonstrates the fraud of their supposed "liberalism". This is the most despicable form of atomizing, solidarity-destroying class warfare; dividing generations, family & neighborly bonds.

I've posted a few times on the less-than-laudable activities (genetically modified food & charter schools, anyone?) of a foundation that shall be nameless. Inevitably followed by a boatload of comments like: "But they're nice folks hel-ping the pooooooor!"

No. They're rich folks pursuing their own goals. Private foundations are tax-free accumulations of capital, used by the super-rich to steer public opinion & public policy & to 'gift' their political lapdogs with jobs & pork.

Why does Bill Gates get to make agricultural policy for Africa? Who are the officers of the Pew Charitable Trusts, & why do they get to fill the public arena with blather about the old thieving from the young?

Foundations are UNACCOUNTABLE, NON-DEMOCRATIC accumulations of private, ruling class power. They don't act in ordinary people's interest except at the margins.

If the last year's parade of theft & deceit hasn't convinced you that the ruling class agenda for the average worker is to empty his pockets, & for the already poor to destroy them totally, you haven't been paying attention.

I hope you'll join me in writing & calling your representatives until they shut up about Social Security & ADDRESS THE REAL PROBLEMS:

*No changes to Social Security. It's not in crisis; the economy is.

*Rescind Bush's tax cuts & raise income & cap gains on the top 1-5%.

*Real jobs making real stuff: stop giving tax breaks for offshoring & overseas hiring.

*Wages, housing, & universal healthcare.


There is no economic conflict between the generations.

But there's a big economic conflict between the global ruling class & everyone else.