Social Security – Page 3

Excerpt:

According to police figures, Tuesday’s nationwide protests marked the largest single-day union-backed demonstration in France in thirty years. Some 1.272 million turned out to the streets. That’s more than the already-impressive January 19 turnout, it’s more than any of the single-day peaks of the 2010 and 2003 movements over retirement reforms — it even topped the height of the legendary 1995 protests.

And there’s more to come. The united union coalition has called for two further days of strikes and protest: Tuesday, February 7, and Saturday, February 11. “Until then,” the coalition has also called on the public to “multiply actions, initiatives, meetings, and general assemblies across the country, in workplaces [and] at places of study, including through strikes.”

After two successful national mobilizations, the movement seems to be entering a new phase. Public opinion is clearly on its side — and yet, the government isn’t budging on the proposed hike in the retirement eligibility age from sixty-two to sixty-four. Clearly, it’s going to take more for organized labor to win this battle.

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Clearly, the strike calls over pension reform have resonated beyond organized labor’s traditional bastions of support in the public sector: namely, schools, health services, and transit networks (the national SNCF rail company and the Paris metro network). Workers in all these sectors have walked off the jobs, but so have others in the private sector. The General Confederation of Labour (CGT) has shared a list of strikes on January 31 that illustrates this point: five thousand strikers at Airbus; a walkout from 90 percent of the staff at a FNAC department store outside of Toulouse; a strike from 80 percent of the workers at a LU Mondelēz factory in Normandy, etc.

Author(s): Cole Stangler

Publication Date: 2 Feb 2023

Publication Site: Jacobin

Why the French are protesting against pension reform

February 2, 2023February 2, 2023 Mary Pat Campbell

Link: https://www.dw.com/en/france-pension-reform-plans-trigger-public-backlash/a-64513082

Excerpt:

A reform of France’s pension system is set to push up the minimum retirement age from 62 to 64. The government has said the measures are needed. But most French, and even a number of economists, disagree.

The demonstration on a recent Thursday afternoon could be a bad omen for President Emmanuel Macron. About 80,000 people gathered in Paris, and over 1 million across France — more than at any other French protest in over a decade. They were there to show their opposition to the government’s pension reform plans, which even some economists disapprove of.

Protesters in the street leading from Place de la Republique to Place de la Bastille in northeastern Paris were holding up placards saying things like “I love my pension” and “This [reform] is not inevitable, it does not create social justice.”

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But the government has said the reforms are necessary to save France’s pay-as-you-go system, where workers pay for pensions through their levies. “The ratio of workers to pensioners is going down and that is threatening our system. With this project, we’ll guarantee the future of our retirement model,” Prime Minister Elisabeth Borne said before the Senate in mid-January.

As opposed to certain other European countries, France’s pension system does not include any capital-funded elements. It comprises general branches for private employees and public servants, and 27 so-called special pension schemes for, for example, ballet dancers or police officers that benefit from an earlier retirement.

The government now aims to increase the system’s overall minimum retirement age from 62 to 64 years by 2030. And from 2027 on, people will need to work for 43 years — instead of the current 42 — to receive a full-rate pension.

Macron’s plans would maintain an earlier retirement for people who started working at a young age and preserve certain special pension schemes. Others, such as the plans for metro drivers in Paris, are to be cut. The government also aims to increase the minimum pension by about €100 ($108) to €1,200 per month.

Money is, of course, Macron’s main argument. The reform is based on a report by a government-mandated expert committee that predicts pension payments will amount to up to 14.7% of GDP in 2032, instead of the current 13.8%.

Author(s): Lisa Louis

Publication Date: 30 Jan 2023

Publication Site: DW

Does the GOP Want a Government Default So It Can Kill Social Security?

February 2, 2023February 2, 2023 Mary Pat Campbell

Link: https://jacobin.com/2023/01/republicans-debt-ceiling-shock-doctrine-spending-cuts

Excerpt:

The debt ceiling is normally a dull topic, and many have understandably neglected to follow along. To recap, the debt ceiling is the artificial cap Congress places on the amount of money the government can borrow. As Secretary of the Treasury Janet Yellen and others have pointed out, there is little practical reason for the debt ceiling to exist at all. From a technical point of view, it is a formality to authorize the Treasury to pay bills the government has already incurred. Through creative accounting, the Treasury can keep paying for a few more months, and then it will have to stop unless Congress votes to raise the debt ceiling.

All sides agree that the US government deliberately defaulting on debts would be the financial equivalent of an atom bomb, causing immediate painful shocks across the world economy and unpredictable long-term effects. In order to avoid this scenario, voting to raise the debt ceiling is usually a matter of course — though the number of near and actual government shutdowns from Congress playing chicken with the ceiling have increased in recent decades.

But it might be different this time. As Politico reported last week, a number of former government officials who negotiated during previous standoffs over the debt ceiling think there’s much less room for a negotiated settlement this year.

The main reason is that, at least on the surface, House Speaker Kevin McCarthy is in a weak position, effectively held hostage by conditions that were imposed on him by the most extreme members of the House Republican conference during his election to speaker. Those conditions specifically require significant spending cuts in exchange for raising the debt ceiling.

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Democrats also argue that though Republicans insist on reducing spending, they have refused to make specific demands for what they want cut. Here is where The Shock Doctrine might provide a hint of what’s to come. The idea of privatizing Social Security has been “lying around” since George W. Bush’s presidency. Joe Biden himself has a long, well-documented history of trying to cut Social Security and Medicare, though in public statements since 2020 he has consistently said he would not agree to do so.

Kevin McCarthy and other Republicans have repeatedly floated the idea of cutting the popular programs over the past year. While McCarthy appeared to abruptly back off the idea of cutting Social Security and Medicare as part of the debt ceiling negotiations on Sunday, his ambiguous promise to “strengthen” the programs without specifying what that means leaves plenty of room for privatization.

Author(s): Ben Beckett

Publication Date: 31 Jan 2023

Publication Site: Jacobin

France: Over 1 million march against raising retirement age

January 23, 2023January 23, 2023 Mary Pat Campbell

Link: https://apnews.com/article/france-retirement-age-limit-protests-866eb86aea5cf0d39894b96d2888c26f

Excerpt:

At least 1.1 million people protested on the streets of Paris and other French cities Thursday amid nationwide strikes against plans to raise the retirement age — but President Emmanuel Macron insisted he would press ahead with the proposed pension reforms.

Emboldened by the mass show of resistance, French unions announced new strikes and protests Jan. 31, vowing to try to get the government to back down on plans to push up the standard retirement age from 62 to 64. Macron says the measure – a central pillar of his second term — is needed to keep the pension system financially viable, but unions say it threatens hard-fought worker rights.

Out of the country for a French-Spanish summit in Barcelona, Macron acknowledged the public discontent but said that “we must do that reform” to “save” French pensions.

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In a country with an aging population and growing life expectancy where everyone receives a state pension, Macron’s government says the reform is the only way to keep the system solvent.

Unions propose a tax on the wealthy or more payroll contributions from employers to finance the pension system instead.

Polls suggest most French people oppose the reform, and Thursday was the first public reaction to Macron’s plan. Strikes severely disrupted transport, schools and other public services, and more than 200 rallies were staged around France.

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Under the planned changes, workers must have worked for at least 43 years to be entitled to a full pension. For those who do not fulfil that condition, like many women who interrupted their career to raise children or those who studied for a long time and started working late, the retirement age would remain unchanged at 67.

Those who started to work under the age of 20 and workers with major health issues would be allowed early retirement.

Protracted strikes met Macron’s last effort to raise the retirement age in 2019. He eventually withdrew it after the COVID-19 pandemic hit.

Retirement rules vary widely from country to country, making direct comparisons difficult. The official retirement age in the U.S. is now 67, and countries across Europe have been raising pension ages as populations grow older and fertility rates drop.

Author(s): SYLVIE CORBET and JADE LE DELEY

Publication Date: 19 Jan 2023

Publication Site: Associated Press

Millions march in France against Macron’s pension cuts

January 23, 2023January 23, 2023 Mary Pat Campbell

Link: https://www.wsws.org/en/articles/2023/01/20/fxax-j20.html

Excerpt:

Two million people struck or marched in protests yesterday called by union federations against President Emmanuel Macron’s pension cuts. Polls show around 80 percent of the population oppose the cuts, which would increase the minimum retirement age to 64 with a minimum pay-in period of 43 years. Strike calls were widely followed by rail and mass transit workers, school staff, and electricity and refinery workers, and 200 protest marches were held in cities across France.

Trade unions reported that 400,000 people marched in Paris, 140,000 in Marseille, 38,000 in Lyon, 60,000 in Bordeaux, 50,000 in Toulouse and Lille, 55,000 in Nantes and 35,000 in Strasbourg. Moreover, many smaller cities saw large turnouts that surprised police authorities. There were 25,000 in Orléans, 21,000 in Le Mans, 20,000 in Nice, 19,000 in Clermont-Ferrand, 15,000 in Tours, 13,000 in Pau, 10,000 in Chartres, 9,000 in Angoulême and 8,000 in Châteauroux.

Author(s): Alex Lantier, Anthony Torres

Publication Date: 20 Jan 2023

Publication Site: World Socialist Web Site

Pensioner at 43? Turkey introduces Early Retirement

January 6, 2023January 6, 2023 Mary Pat Campbell

Link: https://www.novinite.com/articles/218274/Pensioner+at+43%3F+Turkey+introduces+Early+Retirement

Excerpt:

Over 2 million Turks will be able to retire at any time as long as they have worked for at least 7,200 days. Critics warn of the dangerous consequences of this pre-election move by President Erdogan, writes Deutsche Welle.

The door of the Pension and Social Security Office in Istanbul’s Unkapani district is locked. However, a long line has formed on the sidewalk in front of it – people are waiting for the lunch break to end.

The 49-year-old toy seller Murat, who is among those waiting, started working at the age of 13. Now he wants to know if he can retire immediately. “Actually, 49 is too early,” he admits. “But if the state gives you such an opportunity, you should take advantage of it,” he adds.

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Similar queues are currently being seen in many places after President Recep Tayyip Erdogan announced that the minimum retirement age would be abolished. According to him, this will affect about 2 million people. Until now, women had the right to retire at 58 and men at 60. From the middle of January, only the time worked will be taken into account. This means that 7,200 days of service will qualify for retirement.

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Another problem is that the earlier people receive pensions, the earlier they stop making contributions to the insurance system. So it is in danger of collapsing in the long term, says the woman, who did not want to be named. “This is at the expense of future generations,” economist Senol Babuscu told Turkey‘s Karar TV. “How much damage we are doing to future generations remains to be seen.”

The upcoming costs of the Turkish state are also not yet known. But the Labor Minister predicted the bill would come out to at least €5 billion.

Publication Date: 4 Jan 2023

Publication Site: novinite.com

Meet the Grinch Stealing the Future of Gen Y And Z

January 3, 2023January 3, 2023 Mary Pat Campbell

Link: https://www.ineteconomics.org/perspectives/blog/meet-the-grinch-stealing-the-future-of-gen-y-and-z

Excerpt:

There’s one threat that gets far less attention, which has been impacting American workers since the 1970s: wages that just don’t keep up, despite increased productivity. Social Security was designed for wages that rise with inflation – but that’s not happening. In an interview with the Institute for New Economic Thinking, Eric Laursen, author of The People’s Pension: The Struggle to Defend Social Security Since Reagan, breaks down how the program works, why wage stagnation represents a mounting threat, and what can be done to strengthen and update the program for the 21^stcentury.

Lynn Parramore: Social Security has been America’s most successful retirement program for the last 87 years. Yet the public is constantly hearing that the program is going to “run out of money.” Is that actually true? Can Social Security actually go bankrupt?

Eric Laursen: No, and the word bankrupt is just about a complete misnomer when it comes to Social Security. The program is funded by contributions that participants and their employers make through their paychecks. It’s also backed by a Trust Fund which is accumulated over time.

That Trust Fund is dwindling now, and it’s expected to run out of money in the early 2030s. But Social Security can’t actually go bankrupt. If the situation arises where there is not enough money either in the Trust Fund or coming through from contributions to fund current benefits, then those benefits can’t be paid, perhaps as much as 25%. In that case, Congress would be faced with a choice to either cut benefits or increase contributions.

There’s a lot of pressure from people who want to cut Social Security to do it now rather than waiting for that point in the future, because at that point, Congress would be under a lot of pressure to make good on what people have been promised.

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LP: What would you do to make sure that Social Security is protected and remains strong? Does it need to be modernized in some ways to keep it effective?

EL: There are a number of things that can be done. One is to raise the cap. More of income beyond the $147,000 threshold needs to be taxed for payroll tax purposes. Another thing that can be done is passing the Social Security Expansion Act that Sanders, Elizabeth Warren, and others have backed. There is a special minimum benefit for Social Security recipients that’s aimed at keeping people who have really low incomes during their lifetimes above the poverty level, and that needs to be improved. That’s not asking a lot. It should be done.

You can also change the rules for wealthy people. One of the differences between now and 40 years ago is that people in the really high income brackets get much more of their income from investments, stock options, and other business holdings than they do from salaries and wages. We need to figure out a formula for applying the payroll tax to at least some of that investment income – like capital gains and so forth. Definitely, the CPI-E needs to be instituted. There should be an expansion of benefits across the board for Social Security benefits. We need the CPI-E at a base level that’s more reasonable. Another thing I think is important: one of the changes that happened in ’83 that was really bad was that Social Security survivor benefits were ended for children of deceased or disabled workers above the age of 18. It used to be that you could get those until 22 and they would help you to go to college. That was abolished. It would be a very good thing if that could be reinstated so that more people have some level of security to pursue higher education.

Author(s): Lynn Parramore

Publication Date: 20 Dec 2022

Publication Site: Institute for New Economic Thinking

Social Security denies disability benefits based on list with jobs from 1977

December 29, 2022December 29, 2022 Mary Pat Campbell

Link: https://www.washingtonpost.com/politics/2022/12/27/social-security-job-titles-disabled-applicants-obsolete/

Graphic:

Excerpt:

Every year, thousands of claimants like Heard find themselves blocked at this crucial last step in the arduous process of applying for disability benefits, thanks to labor market data that was last updated 45 years ago.

The jobs are spelled out in an exhaustive publication known as the Dictionary of Occupational Titles. The vast majority of the 12,700 entries were last updated in 1977. The Department of Labor, which originally compiled the index, abandoned it 31 years ago in a sign of the economy’s shift from blue-collar manufacturing to information and services.

Social Security, though, still relies on it at the final stage when a claim is reviewed. The government, using strict vocational rules, assesses someone’s capacity to work and if jobs exist “in significant numbers” that they could still do. The dictionary remains the backbone of a $200 billion disability system that provides benefits to 15 million people.

It lists 137 unskilled, sedentary jobs — jobs that most closely match the skills and limitations of those who apply for disability benefits. But in reality, most of these occupations were offshored, outsourced, and shifted to skilled work decades ago. Many have disappeared altogether.

Author(s): Lisa Rein

Publication Date: 27 Dec 2022

Publication Site: Washington Post

Social Security Politics

November 8, 2022November 8, 2022 Mary Pat Campbell

Link: https://marypatcampbell.substack.com/p/social-security-politics#details

Graphic:

Excerpt:

2022 OASDI Trustees Report, plus spreadsheets, etc. https://www.ssa.gov/OACT/TR/2022/

I am graphing the net change in the OASI (that’s the old age benefit part) Trust Fund, year-over-year.

I think you can easily see all those glorious years the Boomer payroll taxes were being stuffed into the Trust Fund… but really flowing right out into current spending for other goodies.

And you can see when that reversed and is now negative, and will continue to be negative until the Trust Fund is exhausted, in the early 2030s.

Author(s): Mary Pat Campbell

Publication Date: 7 Nov 2022

Publication Site: STUMP at substack

German pensions could rise by up to 4.2% in 2023 – proposal

November 7, 2022November 7, 2022 Mary Pat Campbell

Link: https://www.reuters.com/markets/europe/german-pensions-could-rise-by-up-42-2023-proposal-2022-11-05/

Excerpt:

BERLIN, Nov 5 (Reuters) – Germany’s more than 20 million pensioners will likely see their state benefit rise by up to 4.2% from July 2023, according to a governemt proposal seen by Reuters, lower than the expected inflation rate of 7.0%.

The state pension in western Germany will rise by 3.5%, while in former East Germany it will increase by 4.2% according to the draft, as the government continues to narrow the gap between the two regions.

Author(s): Holger Hansen, Christoph Steitz

Publication Date: 5 Nov 2022

Publication Site: Reuters