As if we didn't already have enough on our plates (having to fend off attacks from the "Fix the Debt" CEOs), now there's another group of CEOs, the Business Roundtable, telling us we need to "modernize," a.k.a. cut, Social Security and Medicare benefits by raising the eligibility ages and reducing cost-of-living adjustments (COLAs). How helpful.
R.J. Eskow took on the Business Roundtable in his latest blog, How Extreme Is the Business Roundtable? Check Out Its Attack on the Elderly.
Yesterday, Gary Loveman, CEO of Caesars Entertainment Corp. and head of the Roundtable's "health and retirement committee," told Politico that "[a]ny effort to address the country's fiscal problems has to have as a centerpiece reform of its principal entitlement programs."
Added Loveman: "None of us [CEOs]—very few of us—are ideologically driven. We're pragmatists...."
"I am encouraged by how relatively easy these remedies really are," said Loveman. "... (and) they have a tremendously sanguine effect on the government's fiscal health."
That's true. It is pretty easy. Just kick in a few rich people's doors, seize their belongings...oh, wait. That's the other extremist scenario. Loveman's is the one where people who have paid for Social Security and Medicare coverage throughout their working lives must give some of their benefits up—for him and his friends.
These CEOs are the same people cutting back on pensions and retiree health benefits. Now they want working people to have even more economic insecurity in retirement by cutting the few benefits that keep seniors afloat.
Raising the Social Security retirement age is especially damaging. Not only is it a benefit cut, workers 55 and older have the longest bouts of unemployment. The average time unemployed is nearly a year (51.3 weeks, compared to 34.3 weeks for workers younger than 55).
Eskow points out that 8.9% of American seniors already live in poverty, while 5.4% are on the edge. The average Social Security recipient collects $1,164 per month.
Anyone who claims they can cut those benefits by 3%—and use those meager benefits to end elder poverty—is selling snake oil.
Snake oil indeed. There's nothing more cynical than calling devastating cuts to vital lifelines "modernization proposals." Working people know the difference.