Surprise, surprise. “The Bush administration has signaled that it will propose changing the formula that sets initial Social Security benefit levels, cutting promised benefits by nearly a third in the coming decades, according to several Republicans close to the White House.” Administration officials claim the deficit caused by this “price-indexing” change — pegging first-year benefits to inflation rather than the rise in wages — will be made up by, you guessed it, “personal investment accounts,” a.k.a. the Bush privatization plan. Funny how Dubya neglected to mention this cut only a few weeks ago…I doubt the plan was formulated over Christmas.
Category: Privatization
Preying on (Social) Insecurity.
Dubya starts the hard sell on his plan for privatizing Social Security, claiming such a move will reassure financial markets. “Mr. Bush never mentioned the near certainty that without raising taxes, which he has ruled out, any plan to add personal investment accounts to Social Security and improve its financial condition would include a reduction in the guaranteed retirement benefit.” Hmmm…that doesn’t sound very reassuring.
Mars, Inc.
A White House Commission on NASA will recommend increased privatization as part of the space agency’s upcoming redesign. At first glance, this sounds like Dubya kicking more money back to his favorite companies. That being said, my lefty-leaning friends who work in the aerospace industry have told me that NASA’s current culture is far too risk-averse and bureaucratic to ever be very efficient, and that privatization may be the only way to make continued space exploration feasible. If so, I guess I’m for it.
Botched Prescription?
In a boon for President Bush’s reelection chances, the GOP succeed in remaking Medicare. (At least the Dems can content themselves with defeating the energy bill.) To be honest, I haven’t been following this bill as closely as I should…I always get a bit annoyed when both parties prostrate themselves before the AARP, far and away the richest (and most likely to vote) portion of the electorate. In fact, the US spends 12 times more on its oldest, wealthiest citizens than it does on its children, even though kids are three times more likely to live below the poverty line. Hence, budget and deficit-busting prescription drug giveaways in the midst of child poverty…great investment.)
All that being said, Medicare is one of the foundations of the American social safety net, just as AFDC was until 1996, and as such this act is a biggie. Mickey Kaus of Slate seems to think the bill is actually good for Dems, while Urban Institute experts believe the back door to privatization is in fact only “window dressing.” But still, most Senators I trust came down against it (including John McCain, who railed against the giveaways to drug-makers in the bill.) And, while I still find it absurd that we’re giving prescription drug benefits to a select portion of the electorate before finding a way to insure every citizen, even paying lip service to the idea of privatizing Medicare does not seem a step in the right direction towards universal health care.
Finally, if this bill is so innocuous, why are the GOP so gung-ho for it? I hope it’s because they believe they wrested the Medicare issue away from the Democrats rather than due to any real movement towards privatization in the bill. Still, I fret. I mean, would you trust a prescription filled out by a cat-slaughterer?
Nickle and Dimed.
Don Nickles calls it quits, putting his Oklahoma Senate seat in play for 2004. “A businessman before coming to Washington, he championed business’s causes, including tax cuts, deregulation, curbs on damages from lawsuits and opposition to minimum wage increases.” Apparently, he decided to quit after botching his coup attempt during the Lott affair last December. Can’t say I’m sorry to see him go.
Powell Checked.
By a 55-to-40 vote, the Senate overturns Powell’s media ownership rules. Even if the Senate vote goes nowhere (and between the contentious House and a Dubya veto, that’s pretty likely), this should hopefully awaken Michael Powell to the fact that there is significant bipartisan resistance to his agenda of carte blanche deregulation. Instead of freeing the Big Boys from any entangling agreements, perhaps Powell should work on making them honor the agreements they’ve already made – namely, HDTV roll-out and public interest requirements. This isn’t about big government, it’s about getting our money’s worth. Since we’ve given the networks use of bandwidth valued at $70 billion, we have every right to expect something in return.
When the Sun Never Sets.
“The Rove-Bush goal is to return government to its size before the New Deal, leaving the individual more exposed to corporate power than at any other time since the 1920s.” Jack Beatty of The Atlantic Monthly examines Rove’s long-term strategy for the Dubya tax cut, and how it’s cleverly designed to help the GOP in 2004 and 2008. Grim stuff. In a related story, Michael Kinsley offers his take on the dividend debacle: “The recently enacted tax bill is such a shocking and brazen gift for the wealthy that it is hard to describe in anything short of…cartoon-Marxist terms.”
Think Different.
Dick Gephardt tries to separate from the Democratic herd by offering a bold health care proposal that also repeals the ridiculous Dubya tax cuts. It was interesting to read of Gephardt’s proposal right after finishing Jacob Hacker’s The Divided Welfare State, since his proposal buttresses Hacker’s main point. Rather than develop a new public health care infrastructure a la the 1994 Clinton plan, Gephardt’s plan basically follows the path of least resistance and subcontracts health care out to private insurance companies. This will no doubt make it easier to pass in our neo-con political climate than the ’94 Clinton bill. That being said, as Hacker notes, letting the private sector run our social welfare regime severely cuts back on the redistributive potential of health care reform. But, hey, private universal health care coverage is better than no universal health care coverage. And it’s a smart move by Gephardt to appeal to the base.