The Real DealBy James Hamilton

Author Amity Shlaes is at it again. Thankfully.

Shlaes has a way of peeling back the layers of existing knowledge to expose misconceptions and long-overdue investigation. She's doing it again in her new book, "The Forgotten Man: A New History of the Great Depression".

Writing in today's Wall Street Journal, Shlaes says,

"To insult the New Deal is to insult the Social Security that we, our parents, or grandparents receive. The Baby Boomers have a reputation as being selfish. But their reverence in regard to Social Security, not to mention Medicare Part D, is overly unselfish, and comes out of misplaced filial piety. Younger Baby Boomers and the generations after them will doubtless pay higher taxes because of our current unwillingness to criticize entitlements. Americans owe them as much as we owe senior citizens."

Way to go, Amity.

Social Security isn't some mystical tablet handed down from on high by FDR back in ancient times (aka 1935). It's a living breathing program that needs to be updated to keep pace with the needs of Americans who'll retire in 2035 or later. Lockstep devotion to Social Security ignores the realities of how we live our lives today.

It's Not about SSA.. It's About SSBy James Hamilton

The Social Security Administration's Commissioner, Michael Astrue, appeared on C-SPAN recently to answer viewer questions. He handled the callers deftly and left no doubt that the agency is doing just fine - thank you. It was actually something of a snooze-fest.

For my part, the problem with the Social Security program has never been about the Social Security Administration. Just last year, the agency distributed $745 billion in benefits - that's larger than the GDPs of each but the top 15 nations in the world. With some hiccups - especially in ajudicating disability cases - the agency has done a great job and deserves kudos for such.

My argument, rather, is with Members of Congress and the special interest groups that claim there's nothing wrong with the Social Security program that a good tax increase won't fix. This blind loyalty to a federal program ignores the programs flaws and the cradle to grave dependency it helps create.

First implemented in the US in 1935 (the same year "Monopoly" was invented, "Ma" Barker and the gang were gunned down, and Elvis was born), Social Security has tried mightily to be all things to all people. Retirees, the disabled, surviving spouses and children, low-wage earners, and - initially - the unemployed have benefited from the program over the years. Way to go, SSA.

At the same time, however, as people live longer and cost of living adjustments increase the program's outlays each year, the amount of money needed to finance the program grows too. Today workers pay one dollar of every eight they earn to support the Social Security program. This hits low-income workers especially hard and deprives them of the ability to set retirement savings aside on their own during their working years.

Is this really what FDR had in mind back in 1935?

Commissioner Astrue noted during his C-SPAN appearance the over 40% of those who receive Social Security benefits depend on those funds to provide 100% of their monthly income. Amazing! The system that keeps folks from saving while they work actually forces four of every ten recipients to depend on it exclusively.

A Ponzi Scheme? You decide.

Astrue did a good job of defending his agency and the programs it administers. Who'll speak up for the needs of future retirees?

Is Gravel the only Democratic Candidate that will tell it like it is?By Heidi Neel

On June 3^rd the Democratic Presidential candidates gathered in New Hampshire for their second debate. When pressed by CNN’s Wolf Blitzer on fiscal issues, only the former Senator from Alaska, Mike Gravel, seemed to understand the gravity of our federal fiscal fiasco. Check out what he said at Messagejury.com:

MR. GRAVEL: I want to point out that the comptroller general of the United States invited all the presidential candidates to come in for a briefing. I went in for a briefing. He said there was only two other people that came in for a briefing. What the briefing -- he told us is that we have a fiscal gap on the order of $50 trillion. And you're hearing all this money's going to be spent to do all these great things? My God, don't believe a word of it. Follow the money.

… Listen. They've been raiding the Social Security trust funds of $200 million a year, and they're all involved in this. Now, what do they say about it? You balance the budget by raiding the Social Security fund of $200 million a year? And they're doing it now!

An editorial in the The Fort Wayne News Sentinel identifies Gravel as the only Democratic candidate brave enough to mention our huge unfunded future obligations for Medicare and Social Security. It says, “Candidates are more comfortable making promises about tax cuts or universal health care. But voters deserve answers about what the next president would do to sustain Social Security and Medicare without sticking future generations with the bill.”

Students for Saving Social Security!By Lea Abdnor

The current stars in the Presidential primaries has to be-not one of the
candidates-but the students of Students for Saving Social Security (S4).
Last week they moved into New Hampshire for both the D and R debates, as
well as attending some town hall meetings held by candidates.  They were
EXTRAORDINARY.  These students got directly to the candidates themselves and
asked the question: do you favor allowing younger workers to have more
choice and control over their Social Security contributions?  One by one,
the candidates responded affirmatively and expounded on their beliefs about
the future of Social Security.   (Unfortunately, they couldn't get inside of
the Democratic debate so they were only able to interview Mrs. Obama-but
stay tuned!).

S4 is asking the questions that the media should be but isn't.  Standing
ovation for S4!!

S4 Rocks!By James Hamilton

Students for Saving Social Security is everywhere at once!

Their May 31st rally at an AARP event in Washington, DC took Beltway insiders by surprise. The students rocked the nation's capital and delivered their message that saving Social Security for their generation should be everyone's priority.

S4 had this to say about the event: "S4 protested AARP CEO Bill Novelli before his reception at the Oval Room in DC honoring his new book. It went great!!! We had about 7 students in t-shirts that said "my grandparents got Social Security and all I got was this t-shirt." We had posters, handouts and of course the ostrich costume! Novelli was like "where's the ostrich" and of course we got the whole thing on film.  The Oval Room threatened to arrest us for loitering but we prevailed."

S4: You guys rock!