Tag Archives: Social Security

Commentary

How Obama’s new 2011 budget fails the poorest children in two ways

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First of all, Obama’s budget ensures that future generations will be saddled with debt, paying for the entitlement programs (Social Security and Medicare) of their aging parents and grandparents.

Behold, the evidence of generational theft:

(Click for larger image)

Recall that the Democrats gained control of Congress at the beginning of 2007.

The second way that Obama’s budget hurts the poorest children is by denying them the right to access better schools.

Excerpt:

The president’s proposed FY2011 budget increases funding to the Department of Education by $3.5 billion. But despite this significant increase, his budget effectively cuts the freedom of choice and educational opportunities from the lives of children living in the District of Columbia. What began last year as a low-profile attempt to quietly phase out the D.C. Opportunity Scholarship Program has become a noticeable agenda of denying school choice to District families.

[…]The most recent casualty in the struggle to save the successful voucher program’s future is Holy Redeemer Catholic School. The Pre-K through 8th grade school, which has served the community of Northwest Washington, D.C. since 1955, is closing its doors. The Washington, D.C. Archdiocese’s decision to close or combine four Catholic schools in the area speaks to the difficult situation face by Catholic schools in general and the important role voucher programs play in the schools’ ability to provide a high quality, private school education.

This is in spite of the fact that school choice works.

Excerpt:

A recent report from School Choice Wisconsin presented an analysis of the number of calls made to 911 from schools in Milwaukee, similar to a Heritage analysis from last summer written up in The Washington Post. The Milwaukee School Safety report found that choice schools appeared to be relatively safer than Milwaukee’s traditional public schools:

Taking into account enrollment differences, police calls to [Milwaukee public schools] occur at a notably higher rate than at independent charter schools or at schools in the [Milwaukee parental choice program]. The [Milwaukee Public School] call rate per pupil in 2007 is more than three times that at schools in the [Milwaukee Parental Choice Program].

In addition, a new report out this week from Dr. John Robert Warren of the University of Minnesota analyzed the graduation rates of students attending high schools in Milwaukee, comparing the graduation rate of students participating in the school voucher program with the graduation rate of students who attend traditional public schools in the city. Warren found that during the 2007-08 school year, 77 percent of students in the school voucher program graduated compared to 65 percent in the traditional Milwaukee public school system.

Obama is in the pocket of the teacher unions, and he must ensure that they keep their jobs regardless of failure, so that the teacher unions can continue to contribute union dues into Democrat coffers. He doesn’t care about children – he cares about getting elected. It’s just another way that the irresponsible grown-ups attack the things that children need to succeed: a good education, low taxes, a job, and an intact family.

News

Moderate George Will loves Paul Ryan’s plan for economic recovery

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Rep. Paul Ryan

Editorial from the Press Telegram. (H/T ECM)

Excerpt:

Ryan would eliminate taxes on interest, capital gains, dividends and death.The corporate income tax, the world’s second highest, would be replaced by an 8.5 percent business consumption tax. Because this would be about half the average tax burden that other nations place on corporations, U.S. companies would instantly become more competitive – and more able and eager to hire.

Medicare and Social Security would be preserved for those currently receiving benefits, or becoming eligible in the next 10 years (those 55 and older today). Both programs would be made permanently solvent.

Universal access to affordable health care would be guaranteed by refundable tax credits ($2,300 for individuals, $5,700 for families) for purchasing portable coverage in any state. As persons under 55 became Medicare eligible, they would receive payments averaging $11,000 a year, indexed to inflation and pegged to income, with low-income people receiving more support.

Ryan’s plan would fund medical savings accounts from which low-income people would pay minor out-of-pocket medical expenses. All Americans, regardless of income, would be allowed to establish MSAs – tax-preferred accounts for paying such expenses.

Ryan’s plan would allow workers under 55 the choice of investing more than one-third of their current Social Security taxes in personal retirement accounts similar to the Thrift Savings Plan long available to, and immensely popular with, federal employees. This investment would be inheritable property, guaranteeing that individuals will never lose the ability to dispose every dollar they put into these accounts.

Ryan would raise the retirement age. If, when Congress created Social Security in 1935, it had indexed the retirement age (then 65) to life expectancy, today the age would be in the mid-70s. The system was never intended to do what it is doing – subsidizing retirements that extend from one-third to one-half of retirees’ adult lives.

My last post on George Will is here: Moderate George Will lauds the virtues of Michele Bachmann. He’s actually quite moderate, not at all a conservative, so this is very interesting.

ECM also send me this article from the American Spectator.

Excerpt:

Ever since his back and forth with President Obama during last week’s question time at the Republican retreat, Rep. Paul Ryan’s “Roadmap for America’s Future” has been gaining attention as a plan that the Congressional Budget Office has projected would actually solve our nation’s long-term entitlement crisis.

[…]“The lower budget deficits under your proposal would result in much less federal debt than under the alternative fiscal scenario and thereby a much more favorable macroeconomic outlook,” CBO writes in page 14 of its analysis of the Ryan plan.

CBO projects “real gross national product per person would be about 70 percent higher in 2058 under the proposal.” But after 2058, the CBO’s model completely breaks down when trying to project current trends, “because deficits become so large and unsustainable that the model cannot calculate their effects.” By contrast, the model shows the Ryan plan continuing to achieve economic growth in the decades that follow. This is demonstrated by the CBO chart below.

So the CBO is backing up Ryan’s calculations.

News

Social Security running deficits ten years ahead of schedule

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Story from Investors Business Daily.

Here’s the prediction before Obama was elected:

Peter Orszag, now director of the Office of Management and Budget, predicted as director of the Congressional Budget Office in August 2008 that no one needed to worry about Social Security. “CBO projects that outlays will first exceed revenues in 2019 and that the Social Security trust funds will be exhausted in 2049,” we were told.

And then in 2009, Obama began his massive government spending plan:

You know, in public schools the young people are taught by unionized teachers that Social Security is a brilliant economic initiative.  So they’ll keep voting for more socialism because that’s all they know. They’ll only find out much later that they’ve been fleeced by a massive government-run Ponzi scheme. (This is assuming they are even able to get jobs to pay payroll taxes – the unemployment rate among young people is 52%)

We’re doomed!