They’re going to sell it to you, if they can, as a way to “lower the deficit”, or words similar…but what this is really about is making the actual Social Security program work less well—because, after all, if a program is popular today, the best way to make it less so is to apply a bit of “treat ‘em like their cars were impounded” to every interaction customers have with the system.
And what better way to make sure that happens…then to aggressively demoralize everyone who works down at the ol’ Social Security office?
The foot less prompt to seek the morning dew,
The heart less bounding at emotion new,
And hope, once crushed, less quick to spring again.
--From “Thyrsis”, by Matthew Arnold
So here’s the deal, short and sweet: Social Security is amazingly efficient at running an annuity and income support program, both at the same time; in fact, in 2009 the Social Security Administration Old-Age and Survivors’ Benefit Program took in not quite $700 billion and disbursed $564 billion, writing checks to and serving millions of customers at the same time…and they did this with administrative expenses of about $3.4 billion—and that’s just about .6% of the distributions, all of this according to the Report of the Social Security Trustees for 2009.
In the private sector, companies who provide annuities have administrative costs that range from 50% to 500% higher. (Of course, Social Security doesn’t have to pay sales commissions.)
The Social Security folks are similarly frugal with the Disability Insurance Program (expenses run 2.3% of distributions), and if you combine the two the total is .9%.
Nonetheless, the plan from the House Republicans, who want to return to balanced budgets right now, if they are to be believed, is to cut $1.7 billion of those administrative costs from a budget of just under $12 billion in the remaining 7 months of the fiscal year, and, according to the involved union, that means in those next 7 months workers will have to take three weeks worth of furlough days to make that work.
If my quick math is correct it means they hope to close the office about 10% of the time while expecting the same amount of work to be done, which is probably not going to happen.
The likely end result will be callers who can’t get through without more of a struggle, checks that may or may not get out on time, an angry workforce, and a general result that equals more and more people saying “Social Security sucks”—and if you ask me, that’s the real goal of this effort: to make Social Security unpopular, thus setting the stage for more cuts to come later.
And just to put all this in perspective, we today give subsidies totaling about $4 billion a year to oil companies, apparently because gold-plated caviar is really, really, expensive, and the same budget-conscious House Republicans…every single one of ‘em…voted to protect that subsidy just a couple of days ago.
Social Security workers were out yesterday handing out leaflets to describe what’s going on, although as far as I know the leaflets didn’t say that this is just one more part of a giant plan that’s already raising its ugly head in places like Wisconsin and Indiana and Ohio and New Jersey: start a war against one group of American workers by claiming they’re not “real” workers or that they’re “special, extra-privileged” workers…and try to drag down all workers in the process.
A cut like this is a shot at these workers, and, by extension, all workers who might, you know, like a raise some day—and it’s also a shot at you, or your parents, or your grandparents, who will eventually have to deal with the results of all the cutting.
But in the end, it’s important to look at the bright side: the gold-plated caviar market will still be protected, thanks to that $4 billion a year in cash we’re donating to oil companies—and if I had to guess, BP’s senior management will not be looking at longer wait times the next time they call Louie Gohmert or Joe Barton or any one of a few dozen other Members who evidently represent Big Oil first…and Americans last.
FULL DISCLOSURE: This post was written with the support of the CAF State Blogger's Network Project.