Richard (RJ) Eskow
Published: Monday 31 October 2011
“Since when is repaying a creditor - us - considered spending?”

Fact Sheet: Inaccuracies in Washington Post’s Halloween Social Security Article

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A Huffington Post commenter responding to my recent piece on the WashingtonPost's recent Social Security article by saying that I "claimed 'inaccuracies, falsehoods, and downright lies' but delivered problems of tone, and emphasis."

Then, and without irony, the commenter links to a 'fact sheet' on Social Security from - the Washington Post!

Here's a fact sheet on those "inaccuracies, falsehoods, and downright lies"- or at least, as many as I could squeeze in here:

___________________________________________________

"Social Security is sucking money out of the Treasury."

False. The Treasury owes the Social Security $2.6 trillion.

"This year, it will add a projected $46 billion to the nation's budget problems ..."

False. It is drawing on its own funds.

"Replacing cash lost to a one-year payroll tax holiday will require another $105 billion."

False. See Dean Baker for more.

"Social Security is hardly the biggest drain on the budget."

False. It does not drain the budget at all.

"... Modest change to Social Security ... "

False. It's a significant change.

And those are only from the lines I directly quoted. Here are some other falsehoods from the piece:

"The $2.6 trillion Social Security trust fund will provide little relief."

Are you kidding? It provides $2.6 trillion in relief!

"The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing."

False, false, and false. The government has borrowed from Social Security's contributors - you and me - to fund its tax cuts for the wealthy and two wars. Since when is repaying a creditor - us - considered spending?

And that comment about benefit checks is a particularly egregious lie. With no changes to the program whatsoever, it will still be able to pay its benefits in full until sometime in the 2030's, after which it will still be able to pay 75% of its benefits - without taking a single penny from other sources.

"Many Democrats have largely chosen to ignore the shortfall, insisting the program is flush ..."

False. All the Democrats and independents defending Social Security acknowledge the long-term shortfall. Many, like Bernie Sanders, advocating making up the difference by lifting the payroll tax cap in some fashion and applying it to higher earners. (That's the approach recommended by Reagan's former actuary.)

"Such statements (like Harry Reid's, that Social Security doesn't contribute to the deficit) have not been true since at least 2009, when the cost of monthly checks regularly began to exceed payroll tax collections."

False. Social Security is drawing on its own funds and is not contributing to the deficit.

"The Bowles-Simpson plan would have righted the system's finances with a combination of payroll tax increases and reductions in scheduled benefits, mainly years down the road. It would have hit upper-income workers ..."

False. Their overall plan, heavily skewed toward the right, included tax cuts for the wealthy. And it raised payroll taxes so slowly that it would have taken fifty years to have those taxes apply to 90% in income, as they did decades ago.

Obama "endorsed the panel's proposal to tie future benefits to a less-generous inflation index."

Less generous? The current index understates the real increases in living costs for people on Social Security. It isn't "less generous"- it's a benefit cut.

"Retirement benefits were available at 65, at a time when life expectancy was significantly lower than today."

False - and disproven repeatedly. The shorter lifespans in Roosevelt's day were primarily due to infant and childhood mortality. The life expectancy for working adults is only a few years longer than it was then.

This should get readers started on the topic. They can read Baker's piece for more.

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10 comments on "Fact Sheet: Inaccuracies in Washington Post’s Halloween Social Security Article"

anono

November 01, 2011 3:16am

Washinton Post: wall street funded. The $2.6 trillion Social Security Trust fund: What wall street wants. The Goal: To rape every American in the 99% out of every penny they got. But of course the 1% are not Americans in spirit nor deed, so make that rape every American of every penny they got.

Progressive Ra

October 31, 2011 8:11pm

The Acts, Chapter 4, Verses 34 and 35 King James Version:

"Neither was there any among them that lacked: for as many as were possessors of lands or houses, sold them, and brought the prices of the things that were sold, and laid them down at the apostles' feet: and distribution was made unto every man according as he had need."

To find out what happened to a couple of members of the early Christian community, shortly after Christ left the Earth, when they didn't turn over all the proceeds of the sale of all their possessions to St. Peter, read The Acts, Chapter 5, verses 1 through 11.

Spare

October 31, 2011 3:27pm

... all for one and one for all ..... to each according to his needs, from each according to his abilities.Lot of similarity, there ...

Spare

October 31, 2011 3:26pm

... all for one and one for all ..... to each according to his needs, from each according to his abilities.Lot of similarity, there ...

Dusty0

October 31, 2011 2:49pm

Bricklayers working at 67 and beyond is quite likely but soldiers? Hopefully they'll get smart and understand that they are the cannon fodder of the 'elite' and they ought to give their weapons to Congress and such and have those bastards fight the wars. Oh my! There's a knock on my door! I've not even posted this yet and 'THEY' are here and knocking!

Lightning Joe

October 31, 2011 1:44pm

Thanks for the review; I don't read the Post, any more than I watch FUX "News."

The density of the lies in those "media" are so bad that even if you go in with a clear head, you'll likely come out full of false impressions. Much better to simply stay away from the lies, rather than try to sort out which channels are "better."

FUX and the Post are the tools of the one percent; trying to make us LIKE the world they want to create.

oldhat

October 31, 2011 1:21pm

The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing."

true true true where will gov get $ to pay back loan only oyher solution is print $

"Many Democrats have largely chosen to ignore the shortfall, insisting the program is flush

chuckie schumer , cleaver

"Retirement benefits were available at 65, at a time when life expectancy was significantly lower than today."
and proven by all studies

Richard Longely

October 31, 2011 2:22pm

The government wouldn't have stolen all the Social Security Trust Fund money, replacing it with Treasury Notes, if it hadn't been for the Reagan/Bush tax cuts that essentially funneled the money to the wealthy, along with the many changed regulations and lax or corrupt regulatory agencies that funneled billions in corporate welfare to large corporations and their executives. In the last 30 years American workers, the middle class, have seen their pay rise by a factor of ZERO despite doubling their productivity. The top one tenth of one percent, already vastly wealthy, have seen an income increase of near 300%. If the corporate "persons" and Wall St. banks win this economic war this country will descend into a feudal state--working peasants who provide for the noblemen and barons. If this happens which side of that social equation do you think you will wind up on?

george r

October 31, 2011 12:53pm

All pensions should go to the Social Security fund. Including State , Federal , military and county pensions. All for one and one for all. Some jobs should have an earlier retirement date. I don't expect a bricklayer to be physically capable of working until he is 67. Same thing with a soldier.

Albert Kapustar

October 31, 2011 12:23pm

We will be bombarded with articles on how social security will drain everybody in the coming years.i don't always read the Post so I don't know if your referring to the article i read that says we must cut social security because it is a drain on our national ec onomy and we must borrow to pay it back.They didn't mention that the reason the government will have to borrow to pay our funds back is because while starting 2 phonie wars Bush cut the taxes for the rich big time.The only time the US has gone to war and has had tax cuts.Working people once again get blamed for the greed,stupidity and unpatriotism of the rich.We are fighting their wars for oil and they refuse to pay for any of it.