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Donald Trump Is Using the Coronavirus Crisis to Attack Social Security

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Image result for nancy altmanDonald Trump’s proposal to cut the payroll contribution rate is a stealth attack on Social Security. Even if the proposal were to replace Social Security’s dedicated revenue with deficit-funded general revenue, the proposal would undermine this vital program.

The proposal is a Trojan horse. It appears to be a gift, in the form of middle-class tax relief, but would, in the long run, lead to the destruction of working Americans’ fundamental economic security. While the goal of the proposal is stated in terms of fiscal stimulus, its most important impact, if not its intent, is to do what opponents of Social Security have been unable to do—end Social Security as we know it.

The supposed purpose of a reduction in payroll contributions is to address the coronavirus crisis. Tax cuts do not meaningfully address the coronavirus, or even the resulting market panic. We do want to ensure that people have the cash they need while they face massive uncertainties around employment and other costs. We want people to stay home as much as needed without having to worry about paying their rent or other costs. What we need most is a robust public health response, which the Trump administration is utterly failing to provide.

Alongside that vital public health response, there are better options for economic stimulus. These include a one-time progressively structured direct payment, restoring and expanding the Making Work Pay Tax Credit, or expanding the existing Earned Income Tax Credit and provide greater economic stimulus, are more targeted and equitable, and place no administrative burdens on employers. The only reason to support Trump’s proposal above those others is to undermine Social Security.

As revealed in this chart, cutting the payroll contribution rate is a deficient stimulus. Most of the benefit would go to the wealthiest Americans—including CEOs, senators, congresspeople, and members of the Trump administration—who are the least likely to spend the extra money. The other big winners are the nation’s largest corporations and other employers. The lower workers’ wages are, the lower their benefit. Moreover, those state and local employees who do not participate in Social Security would get nothing.


What Trump is proposing to cut, to be clear, are Federal Insurance Contributions Act payments. As the name indicates, these payments are not general taxes, but insurance contributions, or, in today’s parlance, insurance premiums. By law, they can only be used to pay Social Security insurance benefits and their associated administrative costs. Social Security has no borrowing authority. Consequently, Social Security does not and, by law, cannot, add even a penny to the deficit. If Social Security were ever to have insufficient revenue to cover every penny of these costs, those benefits would not be paid.

The late President Ronald Reagan eloquently explained, in his words, “Social Security has nothing to do with the deficit.” This proposal would change that, at least temporarily, if Social Security’s dedicated revenue were replaced with general revenue. (Of course, more accurately, the dedicated revenue would be replaced with borrowed money since the general fund is running unprecedently large deficits.)

The proposal would either undermine Social Security’s financing or employ general revenue, both of which would set the stage for future demands to cut Social Security. And it likely would not be temporary. When the cut would be set to expire, opponents of Social Security would undoubtedly characterize its expiration as a middle-class tax increase.

Too many Americans believe, understandably, that their Social Security contributions have been stolen. Using their contributions for economic stimulus would reveal that their elected officials indeed do not respect the fire wall between their contributions that are held in trust and can be used only for their dedicated purpose and the taxes they pay to the federal government that are held in the general fund and can be used for any constitutional purpose that Congress chooses.

On March 8, Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer released an excellent list of steps we should take to combat the coronavirus. Their plan includes paid sick leave, free coronavirus testing, and treatment for all. Our government should enact these measures, not undermine Social Security by slashing its dedicated revenue.


This article was originally published at Our Future on March 12, 2020. Reprinted with permission.

About the Author: Nancy Altman  is a writing fellow for Economy for All, a project of the Independent Media Institute. She has a 40-year background in the areas of Social Security and private pensions. She is president of Social Security Works and chair of the Strengthen Social Security coalition. Her latest book is The Truth About Social Security. She is also the author of The Battle for Social Security and co-author of Social Security Works!




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An Epidemic of Insecurity

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This image has an empty alt attribute; its file name is conway1.pngThe Dow Jones Industrial Average posted its worst loss since the 2008 financial crisis in a single day this week because of the coronavirus’ impact on global trade, leaving many Americans sick with worry.

It’s not just a rapidly spreading, mysterious disease that made Americans feel vulnerable. The Dow’s freefall erased millions of dollars from retirement accounts and exposed another kind of epidemic—retirement insecurity.

There once was a time when the combination of company pension plans, Social Security and personal savings could carry retirees through their golden years.

No longer. Most companies eliminated defined-benefit plans providing a reliable income stream and implemented 401(k) plans that leave workers at the mercy of stock market volatility, like the kind that rattled investors this week and crushed workers in 2008.

Today, Americans have so much angst about the future that about 29 percent of baby boomers, 36 percent of Gen Xers and 77 percent of millennials fear they’ll never be able to retire or will have to work past normal retirement age.

Americans work hard so they can provide for their families and enjoy retirement. But no matter how carefully they plan, their retirements depend on factors beyond their control.

Patricia Cotton, a home health aide in Maryland, lost half of her $150,000 investment nest egg in the 2008 recession and retired 12 years later than planned.

In all, Americans lost about $2.4 trillion in retirement earnings during the second half of 2008, and the average household lost a third of its net worth.

Cotton was one of many who experienced losses so severe that they had to work longer than intended. The memory of the 2008 recession still gives Americans retirement jitters, and stock market drops like the ones this week compound the fear.

Before 401(k) plans dominated the retirement landscape, companies provided defined-benefit pensions. Workers earned specific—defined—amounts based on their wages and years of service. When workers retired, the employer provided those amounts no matter how the stock market fared.

But now, even workers and retirees with these plans can lose what they earned. For example, 1.3 million Americans are in about 150 multiemployer pension plans at risk of collapsing.

These plans, enrolling workers from two or more companies in fields such as transportation and paper, lost investment earnings in the 2001 and 2008 recessions. Some companies also used bankruptcies to wriggle out of pension obligations. Now, the plans owe more money to beneficiaries than they have coming in.

Because of financial problems plaguing her late husband’s plan, Mary Fry saw her pension cut by more than half, to $1,514 a month, in her early 70s. “It’s worrisome,” she said, “and I don’t think I need worry in my life right now.”

The U.S. House last year passed the Butch Lewis Act, a measure that would provide low-interest loans to save multiemployer plans, but Senate Republicans refuse to consider it.

Instead, Republican Sens. Chuck Grassley of Iowa and Lamar Alexander of Tennessee want to prop up the plans with higher taxes on workers and retirees. Workers didn’t create the problem, but Grassley and Alexander expect them to fix it.

The senators also want to impose hefty new fees on multiemployer plans, something that would push even the healthy ones into financial ruin.

Meanwhile, pensioners agonize about losing houses or paying medical bills if their plans fold. Others try to conserve as much as they can.

Alan Ebert, a United Steelworkers (USW) member who retired about four years ago from a Louisiana paper mill, is in a multiemployer plan at risk of insolvency in 10 years.

He wants to put off collecting Social Security as long as he can. Retirees who delay collecting benefits after their eligibility dates get bigger checks when they do tap into the system, and Ebert hopes to maximize his Social Security in case his multiemployer plan fails.

But Social Security also is imperiled. Some Americans fear it won’t even be around when they’re old enough to retire.

If Congress fails to bolster the trust funds within about 15 years, the program will have to reduce benefits by about 20 percent. That would impoverish millions of retirees.

Mass retirement of baby boomers stresses the program. By 2030, Social Security will have 44 recipients for every 100 workers paying into the system, up from 35 recipients per 100 workers in 2014. But that isn’t the only reason for the funding crisis.

Rich people don’t pay their fair share in Social Security taxes. That’s left billions in badly needed funding on the table.

Federal law ostensibly requires Americans to pay 6.2 percent of their wages in Social Security taxes. However, earnings above $137,700 aren’t taxed at all. That means millionaires and billionaires really pay a Social Security tax of less than 1 percent.

While average Americans pay Social Security taxes all year, a person making $1 million stopped contributing on Feb. 19. Bigger earners finished even earlier.

Making millionaires and billionaires pay Social Security taxes at the same rate as ordinary Americans would stabilize the program.

Under the current, broken system, the rich feather their own nests at everyone else’s expense. They enjoy cushy retirements while average workers struggle to provide for the present, let alone the future.

Because of decades of stagnating wages, many workers live paycheck to paycheck. Some juggle multiple jobs.

They’re saddled with medical bills and college debt and can’t afford an unexpected $400 expense.

Many Americans have nothing to bank for old age.

Roberta Gordon, for example, worked all of her life. But she held a variety of low-paying jobs that provided no pension, meager Social Security benefits and zero savings.

So, at 76, Gordon spent her Saturdays working at a California grocery store, handing out food samples for $50 a shift. She got her own groceries at a church food bank.

Passing the Butch Lewis Act is one step the Senate can take to ease Americans’ retirement insecurity. Making the rich contribute their fair share to Social Security is another common-sense move Congress owes the American people.

Right now, many worry that their resources will expire before they do.


This article was originally printed in Our Future on March 11, 2020. Reprinted with permission. 

About the Author: Tom Conway is international president of the United Steelworkers (USW).




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The Trump Administration’s War on Federal Workers

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Claiming 700,000 members in the United States and overseas, the American Federation of Government Employees (AFGE) stands as the nation’s largest federal and D.C. government employee labor union. The union represents employees who provide care and support for veterans, the elderly and disabled, and people in need of housing through the Social Security Administration, the Department of Veterans Affairs, and the Department of Housing and Urban Development, along with other federal agencies.

A statement on the AFGE website describes these employees as the “vital threads of the fabric of American life.” Now, the AFGE contends, its members are under attack, thanks to recent actions by the Trump administration.

The AFGE is currently in contract negotiations with the Department of Veterans Affairs on behalf of 260,000 employees who work for the agency. In the process of these negotiations, AFGE District Office Manager Matt Muchowski says that VA management is attempting to undo labor rights that have been won by the union since its founding in 1932.

To better understand the nature of these affronts, Muchowski argues, it is important to look at three executive orders signed by President Trump on May 25, 2018. While the orders have since ostensibly been ruled in violation of labor law by a U.S. District Court in August 2018, Muchowski says that sections of the orders which limit time spent during the work day on union activities (known as “official time”) as well as due process are being pushed into the contract by VA negotiators.

This approach is “making it difficult for federal workers to do what they do,” by seeking to alter key elements of the contracts negotiated between AFGE members—including Veterans Affairs workers—and management, he says. Further, Muchowski notes, this strategy has already been employed during negotiations over the Social Security Administration contract earlier this year, which resulted in major concessions for workers. He says the Trump administration’s approach to the AFGE negotiations “represents an escalation of its anti-union tactics.”

The key elements of the 2018 executive orders fall under three categories: employees’ job protection and due process rights, official time and collective bargaining procedures.

The first order outlines limits on the use of “progressive discipline” approaches for workers in federal agencies and instead calls for the allowance of more immediate dismissals, among other more stringently dictated relations between management and workers.

The second order calls for more regulated and restricted use of “official time”: time employees are allowed to spend on union duties while still on the clock. This is a concept that has been part of AFGE’s labor contracts since the Carter administration, Muchowski notes, when the presence of unions in the workplace was seen as “part of effective governance.”

Under this model, an employee can conduct union business while using government-provided items such as office space, computers or phones. Trump’s executive order, however, calls for employees’ official time to be greatly reduced and also mandates that they should no longer be given free or reduced rate access to an office or a computer.

While the Trump administration holds that this revision is necessary to make the government “effective and efficient,” Veterans Affairs employee Germaine Clano disagrees. Clarno is a social worker at the Edward Hines, Jr., VA Hospital in suburban Chicago, and she says the loss of official time would be devastating.

Clarno provides full-time union representation to doctors, social workers and other professional employees of the VA through the official time provision, whether they are dues-paying union members or not. It’s work she describes as essential. “The culture of the VA is still very retaliatory,” Clarno says, noting that she acts as a resource for employees who would like to bring allegations of “waste, fraud or abuse” to light.

“Taking away official time means taking away employees’ security around being able to report what’s going on at the VA,” Clarno insists, “so that we can make things better for our veterans.”

The third order issued by Trump in 2018 is designed to “assist executive departments and agencies in developing efficient, effective, and cost-reducing collective bargaining agreements.” The order claims that collective bargaining agreements limit managers’ ability to either hold “low-performers accountable” or reward “high performers,” and that they are often drawn out, at the expense of taxpayer money.

The order calls for an expedited contract negotiation period, with lingering disputes to be settled by the politically-appointed members of the Federal Service Impasses Panel (FSIP). In the post-Janus era—which has brought new challenges to public sector unions—it’s notable that panel member David Osborne’s bio states that he has built a career around “offering free legal services to those hurt by public employee union officials.”

While both the FSIP and attempts to govern through executive orders are not new, they are part of an increasingly fraught era for federal workers and the Trump administration’s federal management team.

Just days before Trump issued his three executive orders, news reports noted the rising tension between workers and federal managers, who had just unveiled “an ambitious and aggressive plan to modernize the civil service,” according to Nicole Ogrysko of the Federal News Network. This plan, union leaders alleged, was intended to cut department budgets while turning more federal employees into poorly compensated temp workers.

Trump’s executive orders were contested in court by the AFGE and other labor unions, and in August 2018, U.S. District Court Judge Ketanji Brown Jackson ruled in favor of the unions. At the time, a review of the case appeared in the online news outlet, Government Executive, where reporter Erich Wagner stated that Brown Jackson found the executive orders to be in violation of the Civil Service Reform Act of 1978.

This Act upholds the value of good-faith labor-management negotiations and concludes that they are done “in the public interest.” Nonetheless, Muchowski says, the Trump administration has persisted in seeking to negotiate labor contracts with federal employees according to the 2018 executive orders. As evidence, he cites the recently settled contract between the Social Security Administration and the 45,000 AFGE members who work there.

During the contract negotiation process, SSA management and union negotiators could not agree on twelve clauses, according to a reportfiled by Tom Temin of the Federal News Network. As a result, the contract was turned over to the FSIP, which has the power to either “recommend a way to agree,” or “order specific, binding actions” that both parties must abide by, Temin states.

While some government panels are bipartisan, the FSIP is not: All seven members were appointed by Trump. Temin notes that, of the twelve disputed clauses, the FSIP sided with management on ten of them. Although AFGE members were able to keep certain grievance rights, they did lose ground on some central matters, including the implementation of a seven-year contract (the union wanted a two-year term) and the loss of both office space and hours set aside for official time.

David Cann, director of field services and education for the AFGE, says he believes the FSIP’s actions are a violation of Judge Brown Jackson’s ruling against certain aspects of Trump’s executive orders. Brown Jackson’s decision, Cann notes, found that parts of the executive orders violated collective bargaining rights outlined in the Civil Service Act of 1978, and that neither the president nor his subordinates could continue negotiations under such terms.

Because the FSIP is an entirely politically appointed body, Cann argues that its members are, in effect, Trump’s subordinates and therefore should not be allowed to settle disputes, using what he believes are the administration’s executive orders as a guide.

In a statement posted to its website, the AFGE minced no words about the dangerous precedent such a decision could set: “A panel of Trump’s union-busting appointees has imposed anti-worker provisions in a new labor-management contract for the people who ensure elderly Americans and those with disabilities can live with dignity and financial security.”

Clarno has been closely tracking the contract settlement between AFGE and the Social Security Administration and says that, for her, the “fear is that the Federal Service Impasse Panel will push the same thing” for VA workers in contract negotiations. “Federal employees can’t strike,” she states. “Really, what leverage do we have? We have none. It’s very, very concerning.”

This article was originally published at In These Times on June 14, 2019. Reprinted with permission.

About the Author: Sarah Lahm is a Minneapolis-based writer and former English Instructor. She is a 2015 Progressive magazine Education Fellow and blogs about education at brightlightsmallcity.com.


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Veto the Cold-Hearted Health Bill

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Donald Trump is right. The House health insurance bill is “mean, mean, mean,” as he put it last week. He correctly called the measure that would strip health insurance from 23 million Americans “a son of a bitch.”

The proposal is not at all what Donald Trump promised Americans. He said that under his administration, no one would lose coverage. He said everybody would be insured. And the insurance he provided would be a “lot less expensive.”

Senate Democrats spent every day this week pointing this out and demanding that Senate Republicans end their furtive, star-chamber scheming and expose their health insurance proposal to public scrutiny. That unveiling is supposed to happen today.

Republicans have kept their plan under wraps because, like the House measure, it is a son of a bitch. Among other serious problems, it would restore caps on coverage so that if a young couple’s baby is born with serious heart problems, as comedian Jimmy Kimmel’s was, they’d be bankrupted and future treatment for the infant jeopardized.

Donald Trump has warned Senate Republicans, though. Even if the GOP thinks it was fun to rebuff Democrats’ pleas for a public process, they really should pay attention to the President. He’s got veto power.

Republicans have spent the past six years condemning the Affordable Care Act (ACA), which passed in 2010 after Senate Democrats accepted 160 Republican amendments, held 110 bipartisan public hearings and conducted 25 consecutive days of public floor debate. Despite all of that, Republicans contend the ACA is the worst thing since Hitler.

That is what they assert about a law that increased the number of insured Americans by 20 million, prohibited discrimination against people with pre-existing conditions and eliminated the annual and lifetime caps that insurers used to cut off coverage for sick infants and people with cancer.

The entire cavalry of Republican candidates for the GOP nomination for President promised to repeal the ACA, but Donald Trump went further. He pledged to replace it with a big league better bill.

In May 2015, he announced on Twitter: “I’m not going to cut Social Security like every other Republican and I’m not going to cut Medicare or Medicaid.”

In September 2015, he said of his health insurance plans on CBS News’ 60 Minutes, “I am going to take care of everybody. I don’t care if it costs me votes or not. Everybody’s going to be taken care of much better than they’re taken care of now.”

In another 60 Minutes interview, this one with Lesley Stahl last November, he said, “And it’ll be great health care for much less money. So it’ll be better health care, much better, for less money. Not a bad combination.”

In January, he told the Washington Post, “We’re going to have insurance for everybody.” He explained, “There was a philosophy in some circles that if you can’t pay for it, you don’t get it. That’s not going to happen with us.”

But then, the House Republicans betrayed him. The nonpartisan Congressional Budget Office said the measure they passed, called the American Health Care Act (AHCA), would cut more than $800 billion from Medicaid. It said people with pre-existing conditions and some older Americans would face “extremely high premiums.”

Extremely high is an understatement. Here is an example from the CBO report: A 64-year-old with a $26,500 income pays $1,700 for coverage under the Affordable Care Act (ACA), but would be forced to cough up more than half of his or her income – $16,000 – for insurance under the House Republican plan. Overall, premiums would increase 20 percent in the first year. And insurers could charge older people five times the rate they bill younger Americans.

House Republicans said states could permit insurers to squirm out of federal minimum coverage requirements, and in states where that occurred, the CBO said some consumers would be hit with thousands of dollars in increased costs for maternity care, mental health treatment and substance abuse services.

In the first year, the House GOP plan would rob insurance from 14 million Americans.

So much for covering everyone with “great health care at much less money.”

It’s true that President Trump held a party for House Republicans in the Rose Garden after they narrowly passed their bill. But it seems like he did not become aware until later just how horrific the measure is, how signing it into law would make him look like a rank politician, a swamp dweller who spouts promises he has no intention of keeping.

By last week when President Trump met with 15 Senate Republicans about their efforts to pass a health insurance bill, he no longer was reveling in the House measure. He called it “cold-hearted.” He asked the senators to be more “generous,” to put “additional money” into their version.

Senators told reporters that President Trump wanted them to pass a bill that is not viewed as an attack on low-income Americans and provides larger tax credits to enable people to buy insurance.

Now that sounds a little more like the Donald Trump who repeatedly promised his health insurance replacement bill would cover everyone at a lower cost. Still, those goals remain amorphous.

The House bill is stunningly unpopular, almost as detested as Congress itself. President Trump seems to grasp the enormity of that problem. But even his calling it a “son of a bitch” doesn’t seem to have been enough to persuade senators that he’s serious about getting legislation that achieves his promises to leave Medicaid intact, cover everyone and lower costs.

Republican senators deciding the fate of millions of Americans must hear from Donald Trump that passing a health insurance bill that doesn’t fulfill his campaign promises is, shall we say, a cancer on the Presidency.

A veto threat would get their attention.

This blog originally appeared at OurFuture.org on June 21, 2017. Reprinted with permission. 

About the Author: Leo Gerard is president of the United Steelworkers.


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Republicans launch their crusade for elder poverty with repeal of automatic retirement accounts

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America is headed for a retirement crisis—too many people have no significant retirement savings and no pension and will have to rely almost entirely on Social Security benefits that Republicans are constantly trying to cut. You know that the Republican-controlled Congress isn’t going to do anything to fix it, so it’s fallen to cities, towns, and states to try to do something to prevent the disaster we can see approaching us in slow motion. But now, that same Republican-controlled Congress and Donald Trump have teamed up to roll back the ability of cities and towns to protect their future retirees, Bryce Covert reports:

… state and local governments have started setting up auto-IRA savings accounts for private sector workers. Unless a worker opted out, he would get automatically enrolled in such an account, allowing him to save some of his money for retirement.

But there was a question as to whether these accounts ran afoul of federal law. So in August of last year, President Obama finalized a rule that cleared the way for the establishment of these plans and clarified that they wouldn’t conflict with strict rules that apply to pension and retirement plans. That allowed cities and states to move forward.

Under the Congressional Review Act, Congress recently voted to undo Obama’s protections for cities and counties that set up these accounts. On Thursday, Trump put his signature on it, making it official.

States could be next, because why stop at screwing some workers when you could do so much more damage? Combine this with the eternal Republican plans to gut Social Security, and the United States could truly be a nation of senior citizens faced with the choice of working until they drop dead on the job or living on one can of cat food a day.

This article originally appeared at DailyKOS.com on April 14, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.


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Five Groups of Americans Who’ll Get Shafted Under Trump’s Hiring Freeze

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RichardEskowDonald Trump, in what’s been hyped as an “unprecedented” move, has instituted a freeze on the hiring of federal employees. Hyperbole aside (it’s hardly unprecedented, since Ronald Reagan did the same thing on his first day in office), one thing is already clear: this will hurt a lot of people.

Trump’s order exempts military personnel, along with any position that a department or agency head “deems necessary to meet national security or public safety responsibilities.” That offers a fair degree of latitude when it comes to filling positions in certain areas.

But Trump’s appointees aren’t likely to ask for “national security or public safety” exemptions for the many government jobs that help people in ways Republicans despise. So who stands to lose the most under this hiring freeze?

1. Social Security Recipients

Trump and his advisors seem to have had Social Security in mind when they included this language:

“This hiring freeze applies to all executive departments and agencies regardless of the sources of their operational and programmatic funding …” (Emphasis mine.)

While there may be other reasons for this verbiage, it effectively targets Social Security, which is entirely self-funded through the contributions of working Americans and their employers.

Social Security is forbidden by law from contributing to the deficit. It has very low administrative overhead and is remarkably cost-efficient when compared to pension programs in the private sector.

That hasn’t prevented Republicans in Congress from taking a meat cleaver to Social Security’s administrative budget. That has led to increased delays in processing disability applications, longer travel times for recipients as more offices are closed, and longer wait times on the phone and in person.

Social Security pays benefits to retired Americans, disabled Americans, veterans, and children – all of whom will be hurt by these cuts.

2. Working People

The Department of Labor, especially the Occupational Health and Safety Administration (OSHA), ensures that working Americans are safe on the job. It’s a huge task: Nearly 2.9 million Americans were injured on the job in 2015, according to OSHA data, and another 145,000 experienced a work-related illness. 4,836 people died from work-related injuries in 2016. (These numbers count only reported injuries, illnesses, and deaths; not all are reported.)

OSHA’s employees study injury and illness patterns, communicate safety practices and rules, and inspect workplaces to make sure that the rules are being followed. This hiring freeze will lead to fewer such studies, communications, and inspections. That means working Americans will pay a price — in injury, illness, and death.

3. Veterans

Some 500,000 veterans have waited more than a month to receive medical care from the Veterans Administration. Nevertheless, White House spokesperson Sean Spicer confirmed that Trump’s hiring freeze will affect thousands of open positions at the VA, including positions for doctors and nurses. The nation’s veterans will pay for this freeze, in prolonged illness, injury, and pain – or worse.

Vets will pay in another way, too. Vets make up roughly one-third of the federal workforce, which means they will be disproportionately harmed by this hiring freeze. So will women and minorities, both of whom have a significant presence among federal workers – greater than in the workforce as a whole.

4. Small Businesses and Workers All Across the Country

Contrary to what many people believe, federal employees are work in offices all across the country. The goods and services purchased by each federal worker provide jobs and growth for their local economies. Cuts in the federal workforce will therefore cause economic damage all of the states where federal jobs are located.

According to the latest report on the subject from the Office of Management and Budget, states with the largest numbers of Federal employees are: California, with 150,000 jobs; Virginia, with 143,000 jobs; Washington DC, with 133,000 jobs; and, Texas, with 130,000 jobs.

That’s right: Texas.

Other states with large numbers of Federal employees include Maryland, Florida, and Georgia.

Demand for goods and services will fall with the federal workforce. So will demand for workers, which means that wages will rise more slowly (if at all). This hiring freeze will affect small businesses and working people in states like Texas and all across the country.

5. Everybody Else.

The “public safety” argument could also be used to exempt employees of the Environmental Protection Agency from the hiring freeze. But Trump has nominated Scott Pruitt, a longtime foe of environmental regulation who has sided with some genuinely noxious polluters, to run the EPA.

As Oklahoma’s Attorney General, Pruitt has sued the EPA 14 times. “In 13 of those cases,” the New York Times reports, “the co-parties included companies that had contributed money to Mr. Pruitt or to Pruitt-affiliated political campaign committees.”

In other words, Pruitt is dirty. It’s unlikely he’ll seek a “public safety” exemption for the inspectors that identify industrial polluters and bring them to justice. So another group that will suffer under this freeze, without getting too cute about it, is pretty much anybody who drinks water or breathes air. That covers just about everybody.

And that’s just the beginning.

This is not an all-inclusive list. We’ve left out tourists, for example, who’ll pay the price for staffing cuts at the nation’s monuments and national parks. But the overall impact of Trump’s hiring freeze is clear: it shows a reckless disregard for the health, safety, and well-being of the American people.

(And that’s not even counting his plan to end the Affordable Care Act. Physicians Steffie Woolhandler and David Emmelstein estimate that this will result in 43,000 deaths every year. And they’re not Democratic partisans or ACA apologists; they’ve been fighting for single-payer healthcare for years.)

Given these implications – and the thousands of jobs affected at the VA alone – it was surprising to read, in Politico, that “Trump’s move, by itself, doesn’t actually do much.”

That’s true, in one way. The 10,000 to 20,000 jobs affected by this freeze pale in comparison to the federal government’s total workforce of 2.2 million.

But Trump’s just getting started. His memo instructs the Director of the Office of Management and Budget to come up with a broader long-term plan for reducing the federal workforce through attrition. And Trump’s choice for that job, Rep. Mick Mulvaney, is a far-right Republican who’s been fighting to cut the federal government for years.

This freeze is a bad idea, but there will be more where this came from.

This article originally appeared at Ourfuture.org on January 26, 2017. Reprinted with permission.

Richard Eskow is a Senior Fellow with the Campaign for America’s Future and the host of The Zero Hour, a weekly program of news, interviews, and commentary on We Act Radio The Zero Hour is syndicated nationally and is available as a podcast on iTunes. Richard has been a consultant, public policy advisor, and health executive in health financing and social insurance. He was cited as one of “fifty of the world’s leading futurologists” in “The Rough Guide to the Future,” which highlighted his long-range forecasts on health care, evolution, technology, and economic equality. Richard’s writing has been published in print and online. He has also been anthologized three times in book form for “Best Buddhist Writing of the Year.”


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Would You Trust Henry Kissinger with Your Social Security?

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Years ago a political scientist said that the mass media can’t influence what people think, but it can influence what people think about. Today it does both. If you’re a billionaire who wants to manipulate public opinion, that means you’ll keep feeding it stories that serve your ideology and self-interest.

Hedge fund billionaire Peter G. “Pete” Peterson is a master of the art. At a time when 47 million Americans (including one child in five) live in poverty, when our national infrastructure is collapsing and the middle class dream is dying before our eyes, he’s managed to convince a few voters, a lot of politicians, and far too many major-media journalists that our most urgent problem is … federal deficit spending.

They don’t just want you to be concerned about it. They want you to be afraid.

The front for this effort (one of many assembled by the Peterson Foundation) is called “The Coalition for Fiscal and National Security,” and they’ve assembled a list of prominent figures to promote it. Let us consider the message, and the messengers.

******************

The group’s mantra is a statement that retired Admiral Mike Mullen first made when he was Chairman of the Joint Chiefs of Staff:

“The single biggest threat to our national security is our debt.”

That’s a surprisingly bold and naive proclamation, especially from someone of Mullen’s stature. It takes a lot of imagination, and some highly implausible assumptions, to believe that our national security is really endangered by federal deficits.

The Peterson Foundation provides both, of course. Unfortunately its manipulated facts and figures fail to make their case, even when taken at face value.

What would a rational list of nonmilitary risks look like? Climate change would almost certainly top the list. Many military experts already consider it a grave national security threat. A bipartisan group of 48 defense leaders and experts – including, perhaps paradoxically, some of the Peterson group’s signatories – signed a full-page ad let year entitled “Republicans and Democrats Agree: U.S. Security Demands Global Climate Action.”

One defense expert called climate change “the mother of all risks.”

It’s easy to see why. Rising sea levels threaten many of our coastal towns and cities, including most of lower Manhattan. Millions of Americans are likely to become internal refugees in their own country, posing the risk of widespread lawlessness and instability.

Climate change is expected to trigger a number of future conflicts around the globe, as nations and peoples compete for increasingly scarce resources. Some scientists believe that climate change contributed to the rise of ISIS in Iraq and Syria.

Wealth inequality also belongs near the top of the list. Extreme inequality makes a society unstable. Today millions are trapped in poverty while the20 richest Americans own more wealth than half the entire nation – some 150 million people in 57 million households.

Persistent poverty plagues minority communities, while the 400 richest Americans own more than the nation’s entire African-American population (plus one-third of this nation’s Latinos). There are growing rates of suicide, opioid overdose, and deaths from alcoholism among lower-income whites. Economist Anne Case calls them “deaths of despair.”

What will happen if the middle class continues to collapse, if poverty remains inescapable for generation after generation, if most people face working years filled with dashed hopes and retirements plagued by penury?

Despair can turn to rage, sometimes without warning.

That’s one reason why it’s especially imprudent for the corporate-friendly “Coalition” to target Social Security, along with the rest of the social safety net. Sure, they try to sound reasonable. They even mention cutting the military budget (although they tip their hand by emphasizing military health care and payroll expenses, rather than cost overruns or expensive weapons systems.)

But they always turn to social programs, sometimes with not-so-subtle transitions like this: “Defense spending is the largest single category of discretionary spending… In 2015, it was second only to Social Security spending.”

See what they did there?

There’s little chance of getting tax increases or cuts in military spending through this Congress or the next, and they know it. The drumbeat for lower deficits only serves to undermine the social safety net – when we should be spending more to rebuild our economy.

******************

When a group uses prominent people to promote its arguments, it’s prudent to ask: Who are these people? Can we trust them? Are they wise and just?

Well, there’s former Michael Hayden, who headed both the NSA and the CIA. History will remember Hayden for giving sworn testimony to Congress that contained numerous falsehoods, as documented by the Senate Subcommittee on Intelligence. (Experts say it’s very difficult to convict someone for lying to Congress, but it’s still wrong — and illegal.)

Hayden signed off on detainee abuses that he argues were not technically“torture.” He insists other torturers have done much worse, in case that’s your moral standard.

Madeleine Albright’s on the list too. She was widely criticized for answering “we think the price is worth it” when asked about the Iraqi children who died as the result of sanctions against Iraq.

But the most prominent name on the list is Henry Kissinger’s. Is Kissinger credible?  It’s true that he’s popular among media and political elites, but that sad fact only serves to remind us that some memories are short – and that, for some people, the ties of social status outweigh those of morality and decency.

It was Kissinger who reportedly fed confidential information to then-candidate Richard Nixon – information that was used to sabotage the Vietnam peace talks, extracting a massive toll in human lives just to boost Nixon’s election chances.

It was Kissinger who delivered the illegal order to bomb Cambodia and Laos. More bomb material rained down on these tiny nations than was used in all of World War II. His actions cost countless lives and gave rise to the mad, massacring Pol Pot regime.

It was Kissinger who ignored the pleadings of a US diplomat and gave the green light to Pakistani atrocities in what is now Bangladesh, praisingPakistan’s dictator for his “delicacy and tact” while ridiculing those who “bleed” for “the dying Bengalis.”

“Yahya hasn’t had so much fun since the last Hindu massacre!” Kissinger said of Pakistani dictator Yahya Khan. (The government of Bangladesh reported that 3,000,000 people died in the “fun.”)

Kissinger supported the violent overthrow of the Chilean government by a right-wing dictator. Kissinger gave the go-ahead to the Indonesian government’s massacre of from 100,000 to 230,000 people in East Timor. (Estimates vary.) Kissinger’s other offenses and blunders are too numerous to list here.

His intellect is overrated, too. Princeton professor Gary Bass writes that “Kissinger’s policies were not only morally flawed but also disastrous as Cold War strategy.”

Would you trust this man with your Social Security? Do you think he’d make wise and humane decisions about our society’s priorities?

******************

Sure, there are some decent people on the Coalition list. But they’ve been misled by tricksters and lulled by the groupthink that comes from decades inside a bubble of insular privilege.

And what a bubble it is. It’s a glassy gold bubble that filters out every color of the rainbow except its own, bathing its occupants in a warm autumn-colored glow as strangers shiver in the cold blue daylight outside. The bubble speaks with the voice of false authority. It’s a floating oracle with the soul of a confidence man.

But the crowd is thinning out. There are real threats to face outside the bubble: poverty, inequality, a crumbling infrastructure, a dying planet. It’s time for the bubble to disappear, as all bubbles eventually do, by blowing away on the wind or vanishing with a soft pop in the light of the midday sun.

This blog originally appeared in ourfuture.org on June 16, 2016.  Reprinted with permission.

Richard Eskow is a Senior Fellow with the Campaign for America’s Future and the host of The Zero Hour, a weekly program of news, interviews, and commentary on We Act Radio The Zero Hour is syndicated nationally and is available as a podcast on iTunes. Richard has been a consultant, public policy advisor, and health executive in health financing and social insurance. He was cited as one of “fifty of the world’s leading futurologists” in “The Rough Guide to the Future,” which highlighted his long-range forecasts on health care, evolution, technology, and economic equality. Richard’s writing has been published in print and online. He has also been anthologized three times in book form for “Best Buddhist Writing of the Year.”


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Social Security’s Enemies Are Down – But They’re Not Out

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Not so long ago, Social Security was endangered by a “bipartisan” consensus that sought to cut its benefits – already lower than those of comparable countries – as part of a “grand bargain.” President Obama even put a slow-motion benefit cut into one of his proposed budgets, in the form of a reduction in cost-of-living increases.

And nobody talked much about raising taxes on the rich. That, they said, was “politically impossible.”

Things have changed dramatically. The Democratic president, virtually all of his party’s senators, and both its presidential candidates now say they want to expand benefits. An idea that was widely dismissed when it was proposed by Bernie Sanders is now the Democratic position. The “bipartisan” anti-Social Security army seems to be in ragged retreat, its campfires dying and its tents torn down.

But this isn’t over.

The president’s declaration is a major win for the left, as Nancy J. Altman and The Huffington Post political team explain. But the counterattack has begun.

It’s true that the anti-Social Security contingent seemed to be struggling last month at its annual convocation, the austerity-pushing “Fiscal Summit” funded by right-wing hedge fund billionaire Pete Peterson. Peterson’s been financing this movement for decades, aiding friendly politicians in both parties and backing a variety of messaging vehicles designed to disparage government’s role in the social contract.

(They include “The Committee for a Responsible Federal Budget,” “Fix the Debt,” and my personal favorite, “Budgetball.”)

Peterson’s Fiscal Summits were once all the rage with luminaries on both sides of the aisle. Former President Bill Clinton’s been a frequent attendee. (Not this year, though. Wonder why?)

This year’s event wasn’t the same. Sure, some politicians showed up. But a melancholy torpor seemed to hang in the air. It didn’t get much coverage (Clinton’s absence undoubtedly hurt). Three or four bored reporters munched on sandwiches in the press room while being barraged by rock music like they were Manuel Noriega under siege, except that the song choices were relentlessly upbeat – “Beautiful Day” by U2, “Gimme Some Lovin” by the Spencer Davis Group, “Eye of the Tiger” by whoever sang that, “I’d Love to Change the World” by Ten Years After.

(I don’t think anyone at the Summit vetted that last song’s lyrics, which include the line “Tax the rich, feed the poor/until there ain’t no rich no more.”)

But Social Security’s adversaries are still out there. Republicans still embrace the economic austerity that has wounded Europe and hamstrung our own recovery. Democrats at the Summit kowtowed to their hosts’ fiscal fixations. And the media personalities in attendance (were they paid?) offered chipper testimonials – pitches, really – for deficit reduction.

“To paraphrase Mark Twain,” said Bloomberg’s Mark Halperin, “everybody talks about the deficit but nobody does anything about it.”

“You’re somebody who’s trying to do something about the debt and not just talk about it,” CNN’s Dana Bash said to Sen. Joe Manchin (D-W.Va.) before praising the “Simpson-Bowles” deficit reduction plan – an impractical, unpopular and ultimately failed austerity proposal from former Sen. Alan Simpson and Clinton administration official Erskine Bowles – as a “solution.”

CNBC’s John Harwood recounted a “depressing” lunch with a former aide to Sen. Mitch McConnell he approvingly quoted as saying, “We can’t (fix) Social Security” – presumably a euphemism for “cut” – until “the baby boomers retire and the crisis is upon us.”

All of this fiscal folklore has been heavily promoted by Peterson-backed outfits.

Later, predictably, The Washington Post editorial board slammed the president. Democrats want “fatter checks for the elderly,” wrote the editors, for whom increasing a grandmother’s slender stipend is apparently a form of moral obesity.

The Post drew on the above-mentioned “Committee for a Responsible Federal Budget” and another Wall Street-funded group, “Third Way,” for discredited tropes like “the government spends six times as much as seniors as it does on children.” Statements like these are designed to fuel the notion of a “war between generations,” even though Social Security cuts would hurt younger people more.

Unfortunately, a lot of people in Washington still take these fictions seriously. Social Security’s adversaries are well-funded, their myths are deeply embedded in our political culture, and they’re not giving up.

Harwood, Bash, and other journalists in the Peterson umbra will keep reporting on these issues, skewing public perception.

If the Republicans win all three branches of government, Social Security will be in immediate mortal danger.

And while the rhetorical shift among Democrats is welcome, they’ll need to be held to it. Hillary Clinton’s website says she would “expand Social Security for those who need it most and who are treated unfairly by the current system.”

That’s not enough, given the current retirement crisis. The Sanders proposal, which is detailed and covers everyone, must be written into the Democratic platform. And activists must send the message that there will be dire political consequences if it isn’t honored. Otherwise, a new “grand bargain” is still a very real possibility.

The Peterson crowd’s expressed concern about government debt rarely leads them to propose tax increases on the wealthy, and never with any conviction. They’re cutters, not builders – even when it comes to Social Security, which is forbidden by law from adding to that debt. If they were real budget hawks they might consider that fiscal proposal from Ten Years After:

“Tax the rich, feed the poor …”

Say what you will about its politics, but it wouldn’t add a penny to the deficit.

This blog originally appeared in ourfuture.org on June 7, 2016.  Reprinted with permission.

Richard Eskow is a Senior Fellow with the Campaign for America’s Future and the host of The Zero Hour, a weekly program of news, interviews, and commentary on We Act Radio The Zero Hour is syndicated nationally and is available as a podcast on iTunes. Richard has been a consultant, public policy advisor, and health executive in health financing and social insurance. He was cited as one of “fifty of the world’s leading futurologists” in “The Rough Guide to the Future,” which highlighted his long-range forecasts on health care, evolution, technology, and economic equality. Richard’s writing has been published in print and online. He has also been anthologized three times in book form for “Best Buddhist Writing of the Year.”


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New Report: 90 Percent of the World’s Domestic Workers Lack Social Security Protection

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elizabeth grossmanNinety percent—or 60 million of the world’s estimated 67 million domestic workers, some 80 percent of whom are women—labor without any basic social security protections, says a new International Labor Organization (ILO) report. Developing countries have the biggest gaps in coverage but wealthier nations are not immune to this problem.

According to the report, 60 percent of domestic workers in Italy are outside the country’s social security system, as are 30 percent of domestic workers in France and Spain. And here in the U.S., domestic workers—housekeepers, house cleaners, nannies, child and elder care providers among others—are not covered by many of the basic workplace protections that most employees take for granted.

“I would like that we stop being invisible to society,” says Maria Esther Bolaños, who works as a housekeeper in Chicago. Domestic workers “want to be respected and valued,” says Magdelena Zylinska, a domestic worker, also in Chicago who’s been cleaning homes since 1997. “That’s so little really, just to be treated with respect,” says Zylinska. “Everybody who works wants that. We’re not asking for anything extraordinary.”

Historically, most U.S. domestic workers have been excluded from labor protections granted other workers, explains Zylinska. But “we are normal people with children and financial responsibilities,” she says. “That’s why I think it’s important that people recognize us as workers in general and give us more support and rights just as regular workers.”

Both Bolaños and Zylinska are working with groups that are part of the National Domestic Workers Alliance for passage of an Illinois state law that would extend basic employment protections to domestic workers. Among these provisions are written contracts, schedules that specify work hours, meal and other breaks and coverage by state laws that guarantee minimum wages, one day of rest in seven and those of the Illinois Human Rights Act.

If passed, the Illinois bill—known as the Domestic Workers Bill of Rights (HB1288)— would be the seventh such U.S. state bill. So far only California, Connecticut, Hawaii, Massachusetts, New York and Oregon have comparable laws.

Nationally, U.S. domestic workers are covered by Social Security but not by the Occupational Health and Safety Act. Nor do they receive benefits of the Family and Medical Leave Act, Americans with Disabilities Act or the Age Discrimination in Employment Act. And until 1974, when Congress extended the Fair Labor Standards Act to cover domestic workers, U.S. workers employed directly by households were without minimum wage and overtime protections. In 2013, a new Department of Labor rule revised regulations to better cover domestic caregivers under the Fair Labor Standards Act, but leaves U.S. domestic workers without many basic employment protections.

“We have no basic benefits like sick leave,” explains Sally Richmond, who has worked for years providing child care and is a community organizer with the Alliance of Filipinos for Immigrant Rights and Empowerment (AFIRE).

Poor working conditions, long hours and low wages

As described by the ILO report, “Domestic work has traditionally been characterized by poor working conditions, long hours, low wages, forced labor and little or no social protection. In other words, domestic workers are exposed to conditions that are far from the concept of decent work promoted by the ILO. This situation largely reflects the low social and economic value societies usually place on this activity. This is often reflected by the absence of adequate laws and the lack of effective enforcement of those that do exist.”

While domestic work is some of the lowest paid and least protected in the world—in some places earning no more than half the average wage—so many people do this work that, according to the ILO, “if all domestic workers worked in one country, that country would be the world’s tenth largest employer.” Domestic workers also have some of the longest and most unpredictable work hours of any employees.

Add to this, the fact that most of the world’s domestic workers are women, makes this workforce socially and economically vulnerable to additional discrimination, says the ILO. Extending basic social protections to domestic workers is key to fighting poverty and promoting gender equality, said Philippe Marcadent, Chief of the ILO’s Inclusive Labour Markets, Labour Relations and Working Conditions Branch in a statement. The ILO report also points out that many of the estimated 55 million women engaged in domestic work around the world—a number that is likely an undercount—are also migrants, which adds to their vulnerability to discrimination and unfair labor practices.

“Most of us are immigrants and come from really poor countries,” says Zylinska. There are many domestic workers that are supporting “not only their families here but also families in their [home] countries.” Language differences and concerns about immigration status add to the daily employment uncertainties for many domestic workers, say Bolaños and Zylinska.

ILO agreement on domestic workers rights—not ratified by the U.S.

As part of its efforts to improve working conditions and labor protections for domestic workers, in 2011 the ILO adopted what’s called the Domestic Workers Convention that requires countries that ratify the agreement to ensure that domestic workers labor rights are no “less favorable” than those of other workers—including with respect to social security protection and maternity protections. The Convention outlines basic labor rights to include working hours, wage, occupational health and safety, child and migrant workers protections. It also underlines the importance of organizations that represent both domestic workers and those who employ them. But so far, only 22 countries have ratified the Convention. The United States is not among them.

Unlike those employed by more formal workplaces—those outside private homes—around the world, domestic workers typically lack comparable enforceable policies on working hours, occupational health and safety protections, maternity leave, workplace inspections and access to information on labor rights—including the right to organize and form unions.

Many domestic workers “are afraid to complain for fear of losing their job,” says Richmond. “My hope is for this work to be professionalized,” she says. Working with the Union Latina, helps “teach us how we can protect ourselves against abuse and wage theft and how we can take sick days,” says Bolaños. “We don’t have contracts, today I have a job, tomorrow I don’t have a job. It’s a very unregulated business,” explains Zylniska.

But all these basic workplace and labor protections are feasible and affordable, says the ILO report—even for middle and low-income countries. Yet while it documents increasing social security coverage for domestic workers worldwide, these policies often exclude migrant workers who make up at least one-sixth of this global workforce. While fixing these problems can’t be accomplished by one single policy model, said senior ILO economist Fabio Duran-Valverde in a statement, “mandatory coverage (instead of voluntary coverage) is a crucial element for achieving adequate and effective coverage under any system.”

While U.S. law provides protections for domestic worker not guaranteed in other countries, this household-based workforce still lacks coverage provided to other American employees. And given the nature of the domestic workplace ensuring change even when policies shift can be difficult.

“The laws on the books are one thing, but we’ve always been really aware that conditions for domestic workers don’t automatically change when a bill is signed into law,” says National Domestic Workers Alliance campaign director, Andrea Mercado. To make these changes, “It’s going to require a culture shift and a public conversation around domestic work and care work and why we should value it,” she says. “That’s kind of our struggle,” says Zylinska.

The Illinois Domestic Workers Bill of Rights now has 21 Senate and 33 House sponsors. A spokesperson for lead sponsor state Senator Ira Silverstein said the bill is expected to be reintroduced this month and could move swiftly toward a vote.

This blog was originally posted on inthesetimes.org on April 12, 2016. Reprinted with permission.

Elizabeth Grossman is the author of Chasing Molecules: Poisonous Products, Human Health, and the Promise of Green Chemistry, High Tech Trash: Digital Devices, Hidden Toxics, and Human Health, and other books. Her work has appeared in a variety of publications including Scientific American, Yale e360, Environmental Health Perspectives, Mother Jones, Ensia, Time, Civil Eats, The Guardian, The Washington Post, Salon and The Nation.


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Read our lips: Americans want to expand Social Security – not to raise the retirement age

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seiu

The recent presidential debates reminds us that Democrats and Republicans are polar opposites when it comes to Social Security.

While many of the Democratic candidates want to bolster the program and increase benefits, GOP candidates Chris Christie, Ben Carson, Jeb Bush and Marco Rubio have all called for cutting Social Security’s modest benefits by raising the retirement age.

Raising the retirement age may not be a big deal for the wealthy Americans who finance political campaigns or even politicians proposing these cuts. However, it would have a devastating impact on Americans who live paycheck to paycheck, including Patricia Walker of Tampa, Fla.

“For me as a home care worker, I couldn’t work until 70. I already have problems with my knees. I’m already trying to make it,” says Walker, who’s in her early 50s.

Although she works long hours, Walker’s low wages prevent her from being able to purchase a car let alone save money for her golden years. Social Security will be her only plan for retirement.

If Walker and other working Americans apply for Social Security’s retirement benefits before they reach the full retirement age, their benefits will be permanently reduced. For example, when someone retires at age 62, their benefit would be about 25 percent lower than it would be if they waited until they reach full retirement age.

This is a Social Security cut Republican presidential contenders seemingly want to avoid discussing while on the campaign trail.

These same candidates also seem to be ignoring the voices of voters who want lawmakers to expand Social Security; not cut its already modest benefits.

A 2014 poll from the National Academy of Social Insurance found 69 percent of Republicans, 84 percent of Democrats and 76 percent of independent voters support Social Security and they don’t mind paying higher taxes to preserve benefits for future generations. The poll also found 71 percent of Republicans, 79 percent of Democrats and 70 percent of independent voters oppose raising the full retirement age to 70.

Republicans calling for raising the retirement age may be willing to ignore the fact that income levels and life-expectancy rates remain stagnant for the poor as well as the needs of nurses, home care providers, construction workers and others with strenuous jobs that would suffer under their proposal.

One thing any presidential candidate can’t ignore is the retirement crisis looming over the United States. Our country’s next president must be willing to put ideology aside and focus on policies to deliver retirement security to more workers. That includes increasing Social Security benefits, especially for low- and middle-income workers.

Wonder what your full retirement age will be or how your monthly benefits may be reduced if you retire before your full retirement age? Click here.

This article was originally printed on SEIU in October, 2015.  Reprinted with permission.


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