Robert Reich slips a real crisis into the conversation with Fox's John Gibson
Reported by Chrish - March 9, 2005
John Gibson had back-to-back guests on to talk about the Social Security distraction. First Senator Chuck Hagel (R-NE) was on, claiming he had a plan that would ensure solvency for the next 75 years. It is essentially no different from Bush's plan, though he admitted he can't really compare them because Bush has not presented a plan but only "general principles, hasn't laid any specifics out about how he's get there." (Last December I wrote that Treasury Secretary John Snow admitted that they didn't have a plan; what the heck have they been doing? And what are they selling? Principles? Is that like "moral values"?)
There was the usual sales pitch: Americans know there is a looming problem and we should not "squander the time"; voluntary, not mandatory; Gibson asks if Democrats simply won't approve ANY plan submitted by a person with an "R" after their name; drill, drill, drill.
Hagel did say that his plan would assure Americans age 45 and up of no change to their benefits, as opposed to Bush's promise to people 55 and up. Gibson commented that that "might be significant difference to those who currently oppose the president's ideas." He congratulated Hagel, "at least you put a plan out there." (Unspoken: unlike those ornery obstructionist Democrats)
Coming up: "Bush is making SS reform a major priority...we'll find out how Democrats plan to keep his dream from becoming reality." OK, so it was unspoken for a minute.
Robert Reich, the voice of Reason , was the next guest. He said, in response to Gibson's Big Question, "Do the Democrats have a plan of their own, or are they just standing pat with FDR?", "Stand pat." The reason is most Americans dont perceive there is a crisis, according to the polls, and most Americans don't understand how diverting... trillions of dollars, is going to shore up SS system."
Gibson accused Reich of "glossing over" the first point, that polls show most Americans DO think there is a problem and DO think it has to be fixed...
Reich pointed out that there's a difference between a crisis and a problem, and the problem can be fixed quite easily, later, by slightly raising retirement age and slightly raising contributions.
Gibson brings up the talking point that younger people believe they will not get SS benefits, and they want to invest their money in 401Ks. Reich says that they are, respectfully, wrong.
Gibson changes to young people who look at their monthly SS statements and say (aghast) you expect me to live on that? He is in full whine now and asks Reich why are Dems going to stand pat and not deliver a plan?
Reich gives him two answers, the political and the policy. Political answer: wait for the Republicans to put a real plan out there first, not just this "quasi-plan" Bush is selling. The policy answer is that in the real world, the problem is 40-some years out and it's not that big a problem - it can be handled easily as it gets closer.
Gibson asks: "You're sitting here telling me no problem, president Bush is out there telling people there IS a problem; who do you think all those people are going to believe?" (He is smirking and bouncing a pen at Reich as he asks.)
Reich replies "They're not going to believe me...but I think they're probably not going to believe there's a major crisis-like problem out there either. But I'll tell you what, John, there is a problem in Medicare...I wish the whole debate about Social Security would be shifted to Medicare. that's a real issue. We need to deal with that issue."
As soon as the word "Medicare" was out of his mouth, Gibson started overtalking him, looking at his desk and shuffling papers, saying "No, no...I understand that, I understand that....that's another day...OK, Secretary Robert Reich, appreciate it very much."
Comment: Reich is so right. The Bush administration is totally ignoring the looming Medicare crunch, when all the boomers start needing more and more healthcare and their kids are going to have to shoulder that expense too.
Hagel's proposal for lowering the age limit to 45 is simple pandering to that age group. If Bush's numbers (what numbers?) work, Hagel's can't possibly, if as he says the only difference is that TEN-YEAR shift. Fuzzy math-meisters.
Reasonable people on both sides of the aisle are uncomfortable with salesman trying to sell them investments, insurance, and get-rich plans. We're skeptical, knowing that there has to be a commission involved and possibly even a rip-off, or else the salesman wouldn't be "working hard". After this administration's mishandling of the nation's finances and the untruths told to get us to go along with their war plans, only the most loyal believers are going to support this scheme.
