In his State of the Union address, the President placed Social Security “reform” at the center of his agenda.  Now he is selling his plan with the usual smoke and mirrors campaign that we have come to expect from this administration.  At every stop, the President uses words like “crisis,” “problem,” and “bankruptcy,” to describe the program.  Yet the facts simply don’t match the rhetoric.  It should come as no surprise that the President’s proposed “solution” actually threatens to destroy Social Security rather than strengthen it.  That is why Democrats are fighting hard to defend the single most popular and effective social program in American history.

The first sleight of hand from the State of the Union was the President’s assertion that Social Security is in “crisis.”  The truth is that Social Security is financially sound for several decades to come.  The nonpartisan Congressional Budget Office recently announced that Social Security would remain solvent until 2052, ten years later than previously estimated.  After that time, the plan would still be able to give out 80% of the usual guaranteed benefit.

Even if you believe that Social Security has a fiscal problem, it is important to understand that the Bush plan makes the problem much worse.  The privatized accounts that the President is proposing would cost over 4.9 trillion dollars in transition costs.  This is a debt that future generations will be unable to afford.

During his speech, the President also focused on these private accounts as a way to give workers a “better” deal.  This is simply untrue.  As analysis is beginning to show, it is unlikely that those who choose private accounts will receive greater benefits than they would have had they chosen to remain in traditional Social Security.  In fact, in order to accept a private account, a worker would also have to accept enormous benefit cuts in their guaranteed Social Security income. 

Even for those who choose to remain in the traditional Social Security, a hefty benefit cut looms under the President’s plan.  The President has simply rejected all policy options other than a benefit cut.  These cuts, upwards of 46 percent, would be necessary for all American workers under the age of 55, whether you chose to privatize or not.  A similar benefit cut would be needed for other groups who receive Social Security benefits but perhaps were unable to work until retirement, including those who receive disability benefits, as well as those who receive survivor benefits.   

These benefit cuts would be an absolute disaster for residents of the Bronx, particularly Hispanics and African-Americans.  Forty-five percent of blacks and forty-four percent of Hispanics depend upon Social Security for at least 90 percent of their income in retirement.  Minorities also take part in the disability insurance portion of the program at much higher rates than other racial or ethnic groups.  The President has made no reference to these vital programs.

Like many of his other policy goals, the President has put ideology above good planning and smart decision-making.  He is more than willing to distort the facts in order to win this fight.  However, after four years of these propaganda campaigns about Iraq, about Medicare, and about tax cuts, it is finally time for some truth in advertising.