Different ways to say privatization of Social Security

[madfloridian]

There are different ways to say privatization of Social Security and Medicare. They don't always use the word privatization. I feel deep inside that many in the Democratic party intend to turn these programs over to private business. But they will call it other things. Here are some quotes I have found.

The DLC started setting policy on Social Security and other social programs back in 1998 and before. Here is one paragraph from 1998:

"The Skeptical Generations do not reject government; they object to inflexible bureaucracies that move too slowly, limit choices, and resist sensible innovations in areas such as welfare, education and criminal justice. That is why, for example, charter schools - a new form of public school not controlled and run by the central school bureaucracies - are spreading. It is why New Democrats have proposed converting federal training and social programs into vouchers, so that citizens can make choices formerly delegated to so-called experts. And it is why many Democrats are talking about modernizing Social Security to include individual savings accounts."

Building the Next Democratic Majority

They in that one paragraph advocated for charter schools, vouchers, and ISAs. Which is another way of saying private accounts or personal accounts.

And a Medicare plan:

"Senator Breaux's proposal aims squarely at the political center, and it follows the "third way" principle of achieving public goals through market means. While it would harness competitive forces to restrain health care costs, it does not go as far as a voucher system that would leave seniors without an entitlement to basic coverage, as Republicans proposed in 1995. It also challenges the assumption of many Democrats that a tax increase is the only appropriate solution to Medicare's fiscal problems. The Breaux plan would help ensure that the baby boomer generation does not take more out of Medicare than it adds to it. "

From Medicare Breakthrough:
Medicare Breakthrough

That is basically what has been done with the Medicare D plan. They could not even get a bill through our Democratic congress to lower the drug prices through bidding. Profit for pharma first.

And here is the discussion of private plans. Only they use various terminology. And they forget to mention that carving out part for private accounts will hurt those already in the system.

"One of the major reasons the Democratic Leadership Council (DLC) has supported a two-tiered or partial privatization approach (one that maintains a government-provided retirement "safety net" while moving towards private savings accounts for individual pensions) to Social Security reform is to give the poor a means for accumulating income-producing wealth for retirement. In the past, we have praised the Moynihan-Kerrey proposal to carve out a portion of the Social Security payroll tax to seed private accounts, in part because that may be the only way to get low-income families onto the savings ladder. "

Retirement Savings for Low Income Americans

Isn't that what Social Security is now...a way that the poor can retire after contributing to the system?

They also have called for "Universal Pensions". Here is an article by PPI's Paul Weinstein from 2002.

Universal Pensions

Retirement security in America is at a crossroads. The debate over Social Security solvency remains mired in partisan politics, more and more Americans are forced to work longer into their retirement years in order to maintain their standards of living, and in the wake of Enron many Americans are concerned about the safety of their retirement nest eggs. Meanwhile, the private pension system is simply not expanding enough to meet the needs of future retirees.

While Congress regularly adds new incentives to the growing array of tax savings vehicles, retirement security remains stagnant. The U.S. personal savings rate continues its steady decline and too few Americans are saving enough for retirement. Many low-income individuals do not have any savings, and pension coverage for those employed at small businesses was less than 20 percent. And among those who do have savings plans, a large number of them are depleting their retirement savings by cashing out their 401(k) plans when changing jobs.

To really boost savings, we must overhaul the current system to let workers decide how much they can save up to some uniform limit, give workers control over their investment choices, and fold all the existing tax-favored savings accounts into one "universal pension" that workers would take from job to job.

Social Security does go from job to job with us. Though who can afford to invest other ways as well, in addition to contributing to Social Security.

And again my problem with all this is that Social Security can be tinkered with in minor ways. If some are not going to contribute, it will take money away from those who contributed to Social Security all their lives.