Customer Reviews

The Plot Against Social Security: How the Bush Plan Is Endangering Our Financial Future

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I just wanted to correct the assertions made by the first reviewer Krecke. As a Federal employee I know first hand that we do pay social security taxes at the same rate as private sector employees. There is no "opt out" option avialable. Until about 1983 under the Civil Service Retirement System Federal workers did not pay social security taxes but they could not collect social security or take advantage of any of its benefits upon retirement. Instead Fed workers paid a larger of their incomes towards pensions. The new system FERS (Federal Employee Retirement system) implement after 1983 requires fed workers to pay Social Security tax just as everyone else does so we will be effected by any changes to SS as everyone else. There are a lot of misconceptions about federal employees so I would suggest Krecke check the facts before making broad assertions.

The author does an excellent job of documenting the history of Conservative opposition to Social Security since its initial proposal to the present. He recounts what actually took place in the 1980's revisions of Social Security as engineered by the Greenspan Commission, and provides interesting insights into the practical aspects of the dramatic increase in "Federal Revenue" brought about by the doubling of FICA contributions from both Employers and Employees: The excess of FICA "Contributions" to the Treasury thereby masking the losses due to dramatic cuts in the marginal Income Tax rates.

The author also examines the nature of the President's proposal to "Privatize" Social Security by the creation of "Personal Accounts", and the effect such legislation would have upon the Social Security system. Proponents of Privatization ignore the fact that 30% of outlays from the Social Security system go the surviving spouse and children of those income earners who die prematurely, and that the bulk of these outlays go to those in the lowest two quintiles of the income scale.

The author also provides a critical examination of the actuarial and economic assumptions which have been presented in support the Administration argument for Social Security "Reform" by way of Privatization. In the last two Chapters of the Book the Author provides documentation of the fact that only minor tweaks of the current system may be needed provide full funding for all retirees of all ages in perpetuity, and in fact it is Medicare and Medicaid which deserves serious reform measures due to the excessive costs attendant to the U.S. Health Care Industry.

This is the one book to read if, like most people, you're confused and worried by the plans to "reform" Social Security. I heard the author on the radio clearly and firmly debunking the anti-Social Security lobby, and immediately had to read his book. He guides the reader through the swamps of claims and counterclaims with clear, simple prose--but he doesn't speak down to you or "dumb down" the argument. He shows where the risks are in replacing Social Security with market-based private accounts, and even explains who is really behind this campaign and why. Everyone who's future is tied in with destiny of Social Security--and isn't that every working person?--should read this book.

A well written book with a very well documented and critically presented argument against the current proposal to privatize Social Security. It was common sense for me and probably the majority of Americans (according to recent polls) who know firsthand how successful the Social Security program has been by giving our elders, widowed, orphened and injured a sustainable income. Almost all of my elders have relyed on this program as a base for retirement. This despite a massive propaganda blitz from President Bush, his well funded financial supporters and ideologically driven allies.
Many good points but one that really stands out is that this whole scheme is an attempt to steal the many years of contributions we have put into this fund. In 1983 the contribution level to Social Security was increased to create a reserve capable of covering the retirement of the baby boom generation. Rather than put that money into a "lockbox" the politicians decided that they would borrow against it by issuing government bonds. That borrowed money has been used for many things...tax breaks for the wealthy being one of them.
Now Mr. Bush is trying to say that these Bonds are worthless. On the contrary this is a debt owed to all future retirees and the government is obligated to pay (the US has never defaulted on our Bonds) and the payment of this debt will keep Social Security solvent.
The reality is that President Bush would not say US Bonds are worthless to the Chinese government who own a very significant amount of these very same bonds. Bottom line, President Bush in his zeal to promote his privatization plan honors the Chinese government more than the American people. I don't think this is intentional, I respect George W. Bush's patrotism but quite possibly he is being mislead by the idealogically driven think tanks cited in this book.

According to the non-partisan Congressional Budget Office, Social Security can pay every penny of scheduled benefits until 2052, with no changes whatsoever. It will always be able to pay a higher benefit (adjusted for inflation) than what current retirees receive. The size of its shortfall over the program's 75-year planning horizon is less than 40 percent of the size of of the increase in annual defense spending since 2000, and only one-fifth as large as President Bush's tax cut.

Every economist and policy analyst who works on Social Security knows these facts. If the rest of nation knew them as well, no one would be talking about Social Security. Instead we would talking soaring drug costs and health care costs and other real threats to the country's well-being.

But the politicians and pundits have created a scare about the future of Social Security in order to advance their agenda of privatization and/or cuts in the nation's most important social program. This book helps set the record straight. It deserves a wide audience -- every member of Congress and columnist/editorial writer should be forced to read it.

I recommend this book as required reading to every member of Congress. The author explains the history of Social Security from it's beginnings through today. I can't believe that anyone who reads this book will still be in favor of private accounts. I didn't find it partisan because it has plenty of criticism of President Clinton and other Democrats to go along with the criticism of Republicans and others. I'm not a financial wizard and I'm glad I read this and can now really understand Social Security as a 'social' program that belongs to everyone. Private accounts just don't fit into the equation. I would highly recommend this book and I would buy more books by Michael Hitzlik.

Hiltzik has done a very effective job arguing that Social Security is worth preserving in its current form, and will be in much greater danger if private accounts replace part of the system. Intertwined with what seem to be compelling arguments to this effect are myriad facts and assertions that make the point that there has been a right-wing conspiracy against social security, that President W Bush is the latest in a 60-year-long line of conservatives to mount a plot against it, and that in doing so he and his staff have deliberately misled the American people, systematically and on numerous occasions.

The accusations of a plot and of planned, deliberate deception may be true and accurate. However, in laying out the evidence of such things, Hiltzik has largely omitted any information about the "other side" doing essentially the same thing to advance their position in favor of retaining Social Security and rejecting private accounts. To me, the effect of this lack of balance is that, while I want to believe Hiltzik, I feel confident that I am hearing from him only one side of the story. What Hiltzik calls a plot, someone else might characterize as the carrying out of a political strategy. It's hard for me to believe that Democrats and liberals don't have a political strategy of their own, which Hiltzik does not tell us much about.

I'm OK with the idea that there is a conservative political strategy to advance the cause of private social security accounts. I'm NOT OK with being systematically lied to, which Hiltzik claims the conservatives are doing to all of us. I wish Hiltzik's book did something to persuade me that the opponents of private accounts are not telling lies of their own, or mounting their own political strategies. Instead, I was left with the feeling that the conservatives will do anything that works, true or not, moral or not, to advance the cause of private social security; but because Hiltzik tells mostly one side of the story, I also have the feeling that the other side of it may be no more palatable.

Bottom line: A well-written book on a vitally important topic, but not a well-balanced presentation of the pro's and con's of the private social security accounts proposals. That imbalance notwithstanding, I come down on Hiltzik's side: in favor of keeping the present system, making small adjustments required to keep it solvent, and abhorring the thought that all of us are being manipulated by opponents of the system as we know it.

I have to agree with one prior reviewer: Mr. Hiltzik's "take" *is* one-sided. That said, this book is highly readable, well documented, and portrays a shocking manipulation of a manifestly successful 75 year-old federal program by those who would profit by its privatization. I share Mr. Hiltzik's perspective: social insurance is a good thing for America and there's more at stake here than my own personal profit.

My differences with Milton Friedman, Adam Smith's "invisible hand" and unregulated, free-market capitalism put me on the side of those who favor secure investments that guarantee a safety net for vulnerable elderly, the disabled, and survivors. I have contributed to Social Security for almost 60 years. I know that I will get back less than I've paid in and that there are those near the bottom of the socioeconomic ladder who will get proportionately more. In effect, I am contributing through my Social Security deductions since the 1950's, to their secure retirement. I did this willingly and knowingly since without a social contract, a commitment to help each other, the American Dream is mere lip service.

Benjamin Franklin said, "We must all hang together, or assuredly we shall all hang separately" at the signing of the Declaration of Independence. Our contributions to social insurance are a way we can "hang together". Some will give more, but that's always been the case. If that makes me a Socialist, so be it. Or in Luke 12:48 ... "For unto whomsoever much is given, of him shall be much required: and to whom men have committed much, of him they will ask the more."

My point is that the GWBs and the FDRs of the world have profound philosophical differences about their obligations to their fellow humans, differences that will never be resolved by arguments about rates of return on investments, or the freedom to make personal choices.

All that aside, Hilzik's book became out-of-date with the ongoing Great Recession of 2008. No longer can anyone argue that an 8% rate of return in the market is inevitable!

I would read (and pay for) an updated second edition!

The purpose of the book, as stated by the author is "an attempt to redress the balance of information" on Social Security.
"The plot against Social Security aims to propagate, and then exploit, public ignorance about the program."
Mr. Hiltzik does fulfills his purpose very effectively with his research and writing style.

He cautions that Bush's proposal would have destroyed the program and replaced it with risk and higher costs. We dodged a bullet when Bush failed to privatize Social Security!

Mr. Hiltzik exposes the Bush presentation on privatizing as another stacked deck, scripted television infomercial. He also dispels the numerous myths and outright lies about Social Security and the trust fund.

On page 95 the author addresses the correlation between Social Security and tax policy.
"The income tax rates of the rich have been kept low by four presidential administrations, which have raided the trust fund to pay for federal programs that should have been financed from the income tax levy."

Mr. Hiltzik also offers an observation about the people who are always involved in attacks on Social Security.
"While they claim to be protecting the interests of the disenfranchised, they're really fronts for the wealthy and powerful."

He shares a critical view of the program being forecast for "infinity" for Bush's benefit while the 75 year forecast is difficult enough to nail down because of a multitude of variables that change over time.

This is an excellent tool to learn about Social Security and the complexity of the program along with investigating a number of changes that could improve or stabilize the program.

Before reading this book, I had little more than rudimentary knowledge about Social Security. When I was done, I knew much more about it.

This book is an excellent treatise on the subject. It runs down the history of Social Security, including the constant attacks it has faced throughout its existence, and debunks many of them, especially contemporary ones.

Hiltzik methodically goes through the problems with the privatization side, as well as the many blatant conflicts of interest concerning its politics and the political agenda of it. He shows the contradictions of this as part of an "ownership society" and the likelihood that Americans being in charge of their investments would yield the returns that Bush and privatization supporters practically claim to be guaranteed (and the years we have to draw on from 401(k)s and IRAs as evidence). Never forgotten is that this is a social insurance program, and just about the last one that has survived years of whacks being taken at such programs that have put all the risks of everyday life more onto individuals.

This is a solid book from an educational standpoint on the matter and is well-researched.