Cuts in Social Security, Medicare to pay for bank bailouts

[Karmadillo]

http://www.wsws.org/articles/2009/may2009/ssmd-m14.shtml

US: Cuts in Social Security, Medicare to pay for bank bailouts
By Tom Eley
14 May 2009

A government report made public Tuesday indicates that Social Security and Medicare will deplete their trust funds more quickly than previously forecast. This has sparked new demands from within the US financial elite for substantial cuts in the two entitlement programs, which pay retirement and medical benefits for tens of millions of working class Americans.

The report was issued by the programs’ trustees, a group of four Obama administration officials headed by Treasury Secretary Timothy Geithner. Because regressive payroll taxes on workers’ earnings fund the two programs, mounting unemployment has worsened the projections. Since December 2007, 5.7 million jobs have been lost, and the official unemployment rate now approaches 9 percent.

<edit>

Even by its alarmist critics’ own admission, Social Security is not about to collapse under its own weight. It would deplete its funds by 2045, thirty years from now, according to the trustees’ report. For years, Social Security funds have been used to pay directly or indirectly for reactionary federal budget priorities—including tax cuts for the rich, bank bailouts, and the wars in Iraq and Afghanistan.

The Obama administration has shelled out hundreds of billions, no strings attached, to the biggest financial institutions, under the false rationale that this would “kick-start” lending and generate jobs. All told, between direct cash infusions, loans, and guarantees on debt, Washington has handed over around $10 trillion to Wall Street in less than a year. In comparison, Medicare would need $13 trillion and Social Security $5 trillion over the next 75 years to remain solvent, according to the report. In other words, retirement benefits and healthcare benefits for several generations of the elderly could be secured at the cost of one year’s bailout of the financial aristocracy.

<edit>

Secretary Geithner’s dual role as Wall Street frontman and “trustee” of the retirement and health care for the working class underscores the duplicitous nature of the Obama administration. Disregarding the trillions he has handed over to the banks, Geithner claimed yesterday that “there is no more important long-term fiscal measure than gaining control of the growth of Medicare costs.”

The first target for cuts will be Medicare, followed by Social Security. Geithner explained: “After we have passed health-care reform that puts our nation on a path to lower growth in health-care costs and expanded affordable coverage, this president will work to build a bipartisan consensus to ensure the long-term solvency of Social Security.”

more...

[Metta]

1. Wage limit at 90K for Soc. Sec. tax. Just tax all incomes towards it and it goes on forever.

Seems like I heard Krugman or someone like that say that.

[aquart]

3. Seems simple, doesn't it?

But I guess it's unpatriotic to deny Donald Trump a new yacht.

[Metta]

6. You'd think? I constantly amazed at how asleep and uncaring some people are.

Best regards to you, though. :hi:

[ThomCat]

2. How about they get control of wall street costs

and shovel money into health care and helping the poor? Wouldn't that be a wonderful change?

Geithner needs to STFU. I hope that somehow Obama isn't backing him on this shit. :(

[Octafish]

4. It's only fair.

They deserve it, getting our money lost and all. Give them some more. And a bonus.

[leftofthedial]

5. why bother privatizing Social Security?

Obama and Geithner will just give them all the money with no strings attached.

[Samantha]

7. No one is asking the government to bail out these programs

Some like me just want the money back from the surplus the Federal Government "borrowed" over the years paid back. After all, it too must assume some responsibility for paying back its legitimate debts, right?

Sam