Personal Finance & Retirement Planning

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Sunday, January 30, 2005

Bush uses propaganda to mislead Americans

While many younger Americans believe that personal retirement savings accounts is a good idea, not many experts believe that creation of these accounts by privatizing Social Security will in any way help the solvency issue. In fact, even cutting the benefits of retirees, as President Bush's plan does, will not ensure the solvency of Social Security. Or in other words, Social Security does have a solvency problem, but there is no crisis as President Bush has made out to be. (Related article: Retiree benefits expected to fall under Bush plan)

In fact, it is interesting that so many Americans now see the Social Security privatization issue as similar to to the war with Iraq. The President essentially forced various government agencies to cook up a complete lie about weapons of mass destruction (WMD) and he wanted to act fast so that no one would have any time to investigate if he was telling the truth. Indeed, Saddam Hussain was no gentleman, but he had no WMD, and as the world now knows very well, was a threat only to George Bush's ego. President Bush did perfect his technique in misleading the Americans who have since rewarded him by electing him again and it is no surprise that he is doing what he did last time to convince the Americans that they should allow him to privatize Social Security so that their retirement benefits will drop significantly (or disappear altogether if the market heads south) so that he can reward his contributors in the financial services industry and also help the top 1% of the Americans (who will benefit as equities head north in the short run). (Related article: Bush's real agenda for privatizing Social Security)

President Bush was not shy about paying people in the media (in violation of law) to push his conservative policies. Now he is using the Social Security Administration (as he and Vice President Cheney used the CIA prior to the Iraq war) to cook up stories about how the Social Security is in a crisis and how he needs to fix it without giving American people a chance to find out if he is telling the truth. (Related article: Americans totally confused about the privatization issue)

Officers of the National Social Security Council, which represents workers of the Social Security Administration (SSA), have testified before the Democratic Senate Policy Committee regarding reports in the media that employees have been instructed to hype negative projections for Social Security and to promote privatizing Social Security. (Related article: Why did Social Security privatization become a priority for Bush)

Union testimony exposed ways in which SSA employees were instructed to promote the idea that Social Security is in a crisis and that private investment accounts are the solution to this financial situation. The testimony suggests that SSA may have violated federal law prohibiting agencies from using funds for propaganda purposes unless those funds are specifically designated for such use by act of Congress. Additionally, the testimony refuted recent White House assertions and a statement that SSA employees are now required to read, on behalf of Social Security Commissioner Jo Anne B. Barnhart, in the event that they are questioned about the recent media reports.

"Previously, our employees had shared information with the public about Social Security's financial condition, but had never been encouraged to support any particular 'reform' proposal. In fact, they were always expected to remain neutral on political and legislative matters," testified Steve Kofahl, regional vice president of the Council and president of AFGE Local 3937.

"Over the years, through Republican Administrations and Democratic Administrations, there was one constant: the work of the Social Security Administration should not be politicized," testified Debbie Fredericksen, Council executive vice president, now, "frontline Agency employees are being instructed to provide the American public with information that is designed to promote the idea that Social Security is in crisis and that Social Security privatization is the answer." (Related article: Americans concerned about retirement income)

"The use of SSA resources to advocate political positions is wrong and compromises the integrity and credibility of the Social Security Administration. The credibility problem becomes even more acute, when SSA employees are directed to make political statements that are untrue or exaggerated. This undermines the SSA mission to provide clear, accurate, and objective information to the American people about the Social Security system," testified Fredericksen.

Kofahl cited the effectiveness of the Agency campaign by describing a conversation with a taxi driver. Upon learning that Kofahl was an employee of SSA, the driver asserted that "it [Social Security] won't be there for me." When pressed as to why he felt that way, the driver explained that the "Personal Earnings and Benefit Estimate Statement" he received in the mail from SSA told him so.

Documentation and evidence presented by the Council included:
  • Official agency talking points stating, "Modernization must include individually controlled, voluntary personal retirement accounts to augment Social Security."
  • An SSA Tactical Plan instructing employees to "deliver message through press releases, presentations at financial planning seminars and public events" and to "look for non-traditional locations ... such as outreach events at farmer's markets, big box retail stores, etc.
  • A 2-hour lecture by a SSA public affairs specialist given to insurance and financial planning professionals. The lecture covered the July 2001 report from the Social Security Advisory Board and 3 options proposed by the White House Commission to Strengthen and Preserve Social Security. Both the Advisory Board and the Commission advocated establishing private investment accounts.

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