IBD: Where Are the Journalistic Watchdogs on Social Security?

Photo of Tom Blumer.

Earlier this week, an Investors Business Daily editorial noted the weak treatment the Social Security Trustees' Report (summary here) received from the Formerly Mainstream Media:

Journalists in Washington are supposed to be public watchdogs. But when it comes to the crisis facing Social Security, they act more like lapdogs for politicians determined to shirk their responsibility.

The Washington Post, New York Times and Associated Press all led off their stories on the latest Social Security and Medicare trustees' projections by pointing out that Social Security isn't expected to deplete its trust fund reserves until 2041. This supports the contention of Democratic politicians and the AARP that the day of reckoning is more than three decades away, so reform is not an urgent need .....

That is, of course, incorrect, as The Heritage Foundation noted (bolds are mine):

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Social Security spending will exceed projected tax collections in 2017. These deficits will quickly balloon to alarming proportions. After adjusting for inflation, annual deficits will reach $67.8 billion in 2020, $266.5 billion in 2030, and $330.9 billion in 2035.

..... From (2017) on, Social Security will require large and growing amounts of general revenue money in order to pay all of its promised benefits. Even though this money will technically come from cashing in the special issue bonds in the trust fund, the money to repay them will come from other tax collections or borrowing. The billions that go to Social Security each year will make it harder to find money for other government programs or require large and growing tax increases.

There's a method to Old Media's studied ignorance. Heritage explains the problem, but doesn't make the ultimate connection:

Every year, there is one less year of surplus and one more year of deficit. Once those deficits start in 2017, the Trustees Report shows that they will never end. Each year, with the disappearance of another year of surplus, reforming Social Security gets more expensive.

At some point, it will get too expensive to fix, and the USA's retirement system will be stuck in the ruts seen in France, Germany, and other countries that refused to confront their demographic and financial realities. Those who defend Social Security as it is, and wish for political reasons to perpetuate the dependency culture it fosters in the senior population, would actually prefer that the US go down that same failed road. They know full well that all they have to do is run out the clock for something like 5-10 years. At that point, the partial privatization of Social Security to include personally managed investment accounts that could save the system will likely become fiscally impossible.

Don't think for a minute that Old Media doesn't understand this. They know that the less they cover Social Security's real problems, and the more they allow it to be demagogued by its diehard supporters, the less likely it is that reform will occur. Their focus on 2041 instead of 2017 is no accident.

Cross-posted at BizzyBlog.com.

—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters


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Good point.  It's interestin

Good point.  It's interesting how the msm prioritizes various issues and what, to them, requires urgent attention.

Global warming, where the time scale is multi-millenia * and the crisis is demonstrated by fractions of a degree, must be addressed RIGHT NOW.  Social security, set to implode in a matter of years, a decade max, and the crisis is measured in hundreds of billions of dollars - what's the rush?  We've got plenty of time.  Let's study it some more!

* What's the word for a million years?

The media handling of socal s

The media handling of socal security has been abhorrent. Bush's proposal to partially privatize Social Security was rebuked by the Democrats and the MSM. What the media intentionally withheld is that it was not his idea. In '98 the very same proposal was made by Moynihan and Bob Kerrey - an idea that was derived from the Moynhian Social Security commission. In fact Bubba himself had a privitization proposal of his own. But Bush was not smart enough to use this against the Democrats when Schumer pounced on the idea. The MSM never uttered a sound about the hypocracy.

[super sarcasm on]But but Al

[super sarcasm on]

But but Al Franken promised me. He said Bush was lying that it was in trouble. Why we had eons to get the money and it was only as only 11 trillion. I mean he's Mr. Honest. He wouldn't talk about the amount of money it would have taken to fix it in 2003 and talk about it like it was a debt. I mean it's not like him to twist things to get suckers to believe stuff that's completely not true

[super sarcasm off]

For those that care it would have cost 11 trillion to fix it in 2003 but all that money had to literally be invested in 2003. It was going to cost 13 trillion to fix in 2005 and I have no idea how much it would cost now.

The power of compounding.Soci

The power of compounding.

Social security shouldn't be politicized.  Shame on Al Franken.  Where does he think the money is going to come from in ten/twenty years?

True, I kind of noticed when

True, I kind of noticed when he was originally talking about it the thing I did noticed at first was the lack of interest.(I thought that was rather glaring.) Then again you say that like Franken has any shame at all. To be blunt I don't think he really cares about were the money is coming from. He probably gets off on pulling fast ones on others.

If I thought that Social Secu

If I thought that Social Security and Medicare would just implode and cease to exist when they're no longer fiscally sustainable, I'd actually be looking forward to it. There would be an awful day when they would cease to exist in a big, painful, terrible and chaotic implosion, but then we could start over and come up with something more feasible to help the genuinely poor and needy. But apparently not being able to pay for these programs--at all--won't mean they will cease to exist. Everything I've ever read--including this--indicates that the government will just keep throwing infinite amounts of money into what should be dead programs to sustain them forever, at the expense of younger taxpayers and every other government program, like military spending and the prison system. No politician will ever want to be one of the ones who "took Social Security and Medicare away."

That's why the current crop o

That's why the current crop of lib Dems refuse to do anything.  They know in 10 years time they won't be in office and they will be drawing their Congressional pension.  When the proverbial s#$t hits the fan, no one of those who are responsible today will be around to accept the full credit for their sellout of the seniors of this country, let alone the youth. 

I pity the politicians who are elected in 2016 & 2018, they will take the full brunt of the anger that is going to occur when all the dolts wake up with a huge tax increase, year after year after year to meet the obligations promised.  What am I saying? pitying politicians? well, there are some things you wouldn't wish even on your worse enemy.

The truly sad part is this was all avoidable, totally avoidable had SS been run like any other pension plan.  Only morons and ignorant people invest their entire portfolio in low interest bonds and not diversify into stock index funds.  You don't even need individual accounts, just run the plan properly through diversification. 

Well, 2017 will come soon enough and then the raiding of the trust funds comes to a screeching halt, reality will do what the politicians lack in responsibility.  Those in office that year will be faced with some stark options: cut all the other hand out programs and pork barrell spending, raise taxes each and every year to cover the deficit, go deeper into debt or a combination there of because by that time huge deficit spending will not be an option like in the past.

“The object of life is not to be on the side of the majority but to escape finding oneself in the ranks of the insane.” – Marcus Aurelius

Media had major sucess during SS debate

Important post Tom. Thanks. Now, may I rant?

The MSM had a major win (for their agenda) during the SS debate. Following the introduction,a couple of years back, by the Bush administration of a plan to reform SS,  the MSM roared into action. I remember checking that in the LA Times alone (off the top of my head - so just an est.here) over a period of some 9 months, ran hundreds of stories addressing Social Security. Few, if any, accurately presented the proposals accurately; fewer offered past views of pro reform D's. Missing from public consumption was the presentation of the fact that there was broad support for reform; notably for Bush's voluntary partial private accounts (weighted for younger people - not available for yours truly).

In March, 2005 an ABC/Washington Post poll showed (well, I doubt that it made the news, but) that 78% of us thought that it was a crisis. This was a typical result.

A very large % of the media coverge sought to attack the expressed view of the Bush administration that SS was approaching a state of financial crisis. The MSM found experts and pundits from every corner of the universe, in their attempt to proove that there was no crisis. -- NOT INCLUDED in the COVERAGE by media was any mention that many others, including Bill Clinton and Al Gore, consistently used the same language throughout the 1990's. 

What we kept being told by the MSM (typical LA Times piece):

"Social Security is not in crisis, and the financial challenges facing the system are manageable," said Rep. Robert T. Matsui of Sacramento, the senior Democrat on the House Social Security subcommittee.

What we were not reminded of, by the MSM:

Pres. Bill Clinton, Feb 9, 1998 .. "every one of you know that the Social Security system is not sound for the long term, so that all of these achievements, the economic achievements, our increasing social coherence and cohesion, our increasing efforts to reduce poverty among our youngest children, all of them are threatened by the looming fiscal crisis in Social Security."

The polls were readily available - and consistently cherry picked for only the information the media wished to share. They had no interest in leading off the nightly news with: "polls still show strong support in much of the President's proposal - especially amongst young people.

The MSM expended scant effort in bringing forth the past and present views of our economic and political leaders whom the MSM (Democrats) do respect. Many had supported views, similar enough to Bush's general template for reform, that had they been presented by the media we just might have experienced a true discussion of the facts, what was at stake, and how to begin the address.

As the year ran down with the full court press against Bush, by the media, and via the media's broad coverage of those special interests group which had mobilized, AARP, etc., the poll results saw the support for the Bush plan slowly dwindle away. Then the media started sharing some of the new data - which they had helped create. 

It was the MSM that sucessfully defeated what the American citizen, taxpayer and future retiree wanted: a national dialog and debate on how bad it is, and what must be done immediatley to addresss the crisis.

Ref (PSRA/Pew): Q. Generally, do you favor or oppose a proposal which would allow young workers to invest a portion of their SS taxes in privarte retirement accounts, which might include stocks or mutual funds?

Sept 2000    Favor - 70%

Sept 2004    Favor  - 58%

Dec 2004     Favor  - 54%

Feb 2005     Favor  - 46%

March 2005 Favor  - 44%

Well done, MSM. And you say you care about the young people?

On caring for the young and Soc Sec

The MSM obviously cares not about the young, or else they would look more in depth into Chile's privatized system and take a closer look at some residents of Galveston County, and how they've been doing since the 1980s.

"HAV3 TH3 BRIDG3S OF INSANITY B33N CROSS3D AND FOR3V3R R3TRACT3D???."  - Meshuggah, "3ntrapm3nt", from Catch Thirty Thr33 (2005)

I thank God for the fact I am

I thank God for the fact I am not in the SS system but am fearful of the day tehy try and raid my pension to pay for those who are.

Nuke em til they glow then shoot em in the dark. -- save my gun, shoot a liberal.

They'll have to raid everythi

They'll have to raid everything. There won't be any room in the federal budget for anything at all except Social Security and Medicare by 2030 or so. I forget the actual date when SS and Medicare are projected to constitute 100% of the federal budget, but that's one way of showing what monsters those programs have and will become. These entitlements dwarf all other kinds of federal spending. It's insane, and it's scary for this 37-year-old slave worker to think about.

Note: Hmmm. Strikethru isn't working for some reason. The word "slave" in the last line above should be stricken. The intended humor doesn't exactly work without it, does it? ;-)