Forced Busing, the Deficit Commission and Social Security
Monday 13 September 2010
by: Dean Baker, t r u t h o u t | Op-Ed
Forced school busing is often held up as one of the most misguided policy measures ever put into practice. Forced busing came about as part of the process of desegregating schools. In some areas, desegregation simply meant ending laws requiring segregation or redrawing school district lines so that they no longer put African-Americans and whites in separate schools.
However, in many metropolitan areas, housing patterns, themselves partially the result of discrimination, made it difficult to have integrated neighborhood schools. African-Americans and whites lived in different areas. If schools were to be integrated, it meant bringing African-American children into schools in overwhelming white neighborhoods and vice versa. Since many parents would not voluntarily send their children across town to integrate a school, we got forced busing.
This policy set off a firestorm of anger, especially among working-class whites. These parents were infuriated at seeing their kids bussed into inferior schools in African-American neighborhoods to meet goals for integration set by a relatively affluent group of professionals, who largely lived in suburbs or sent their kids to private schools. The political backlash put a quick end to forced busing in the early '70s. Ever since, forced busing has been held up as model of bad policy and horrible politics.
It seems that President Obama's deficit commission is apparently now attempting to put up a challenge to forced busing on the all-time boneheaded policy list. According to stories based on leaks from the commission, it is considering a plan to raise Social Security benefits for the lowest income beneficiaries. This is a great idea, since many of the elderly live at, or only slightly above, the poverty line. A modest increase in benefits would make a big difference in their standard of living.
Truthout is supported by our readers. Help keep us independent with a tax-deductible donation.
However, the geniuses on the commission want to pay for this benefit increase by cutting the benefits of the "affluent" elderly. The problem with this plan is that there are very few genuinely affluent elderly and their benefits are not much higher than the benefits of normal people.
While we can raise lots of money by taxing the richest 1 percent of the population, since they earn such a disproportionate share of the country's income, we cannot save much money by cutting their benefits. When billionaire investment banker Peter Peterson tells audiences that he doesn't need his Social Security benefit, he is only putting $40,000 a year at stake. We can zero out the benefit for Peterson and his wealthy friends and not have to change a single number in the Social Security publications since the difference would be within rounding error.
In order to get any substantial sum of money to increase benefits for low-income elderly and to eliminate the long-term projected shortfall, it will be necessary to cut benefits for people who earned $35,000 - $40,000 a year during their working lifetime. This means cutting benefits for people who worked as schoolteachers, construction workers, factory workers, and other very middle-class or working-class jobs.
We know that most of the people for which the commission wants to cut benefits were already looking at a difficult retirement. Few had managed to accumulate substantial savings and much of what they did accumulate was destroyed by the crash of the housing bubble and the stock market plunge that followed. The middle quintile of workers near retirement has on average $170,000 in assets, including the equity in their home. This is roughly enough to buy the median house, which means that if they took all their wealth they could pay off their mortgage and have nothing other than Social Security to support them in retirement.
Near retirement workers in the fourth quintile, most of whom would likely be nailed by the commission's cuts, have accumulated an average of $340,000 in assets. This means that they could pay off the mortgage on their home and have an annuity income of roughly $10,000 a year in addition to their Social Security.
In addition to actually needing the money, these workers can also point out that they did pay for their benefits. The real return on the Social Security taxes paid by most of these workers is already less than 2.0 percent. For many it would be less than 1.0 percent. The commission wants to make a low return even lower.
Just as was the case with forced busing, the leading proponents of these cuts are unlikely to have to deal with the consequences. One of the co-chairmen of the commission, former Senator Simpson, can rely on his senator's pension, in addition to the money he can garner as a result of his political connections. Erskine Bowles, the other co-chairman, pockets $335,000 a year from his "work" as a director of Morgan Stanley, one of the banks that would be out of business today had it not been rescued by the taxpayers back in 2008.
So, we have another great scheme ostensibly designed to help the poor. This time, it is by taking away retirement benefits for whcih working-class and middle-class people have already paid. And the designers are all comfortable in their own retirement pensions, so that they need not worry about this scheme's impact. Of course, there is one important difference: forced busing was well intentioned.

This work by Truthout is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.



Comments
This forum is moderated by software. Please allow up to 15 minutes for your comments to go live and avoid posting the same comment multiple times.
The Cat Food Commission was
Mon, 09/13/2010 - 11:08 — Anonymous (not verified)The Cat Food Commission was created purposely to be stacked against Social Security which is self funding, thereby not funded with Treasury bond proceeds used to fund the Federal deficit. It is the Pentagon/spy agencies which are funded with the Treasury bond proceeds for the deficit, which according to Admiral Mullen declaration the PENTAGON/SPY AGENCIES to be THE THREAT TO NATIONALS SECURITY because they are funded by the Treasury bond proceeds for the Federal deficit. The President ObambyaBush Cat Food Commission will not even consider the actual reason for the national debt, although Admiral Mullen has identified the PENTAGON SPENDING A THREAT TO NATIONAL SECURITY because it is funded by the national debt.The Prez is the 1st Democrapic President not to fully support Social Security.
This is a good analysis of
Mon, 09/13/2010 - 13:03 — mlyon01 (not verified)This is a good analysis of the Commission's fraudulent plan to cut Social Security benefits, and I thank Dean Baker for it, but I really object to his references to forced bussing, which it think is pandering to racism. I know in Boston, scene of the worst violence against black students being bussed, the movement against "forced bussing" was not a genuine movement among white workers, but instead was lead by gutter racist groups in conjunction with crony Boston politics and school officials who hurt school all over the city.
We must all US NGE (non
Mon, 09/13/2010 - 22:37 — notamerica (not verified)We must all US NGE (non government employee) Citizens join the Chorus: Anonymous 16:08 THE PENTAGON/SPY AGENCIES ARE THE THREAT TO NATIONAL SECURITY
The US Govt "Intelligence Community" and the "Pentagon/MIC" are a Lead Weight around OUR (Americas) neck and we are going to DROWN unless we cut them off Americas neck.
Let's get rid of them, lets terminate their tenure. (like a bad professor)
We'll give them jobs at Fast Food Restaurants where they will be finally able to contribute to the public well being.
Worldwide Referendum: Should
Tue, 09/14/2010 - 00:14 — Anonymous (not verified)Worldwide Referendum:
Should we or should we not put all internal and external 'intelligence' government workers on a 50 percent kibbutz or farm collective or fast food work requirement.
Just an idea for the global inhabitants. We could start with the US.
A credulous Charlie Rose
Tue, 09/14/2010 - 02:43 — Anonymous (not verified)A credulous Charlie Rose "interviewed"
(indulged) Rep. Ryan (R. Wisconsin) today.
Ryan frequently uses the misnomer
"tax increase" to refer to ending the Bush
rich folks tax holiday. Why can't the Dems listen
to some of the Lakoff types who might counsel
countering with the proper term
"Tax Fairness Restoration Act" !!!!!
!!!!!
!!!
!!
!
Right on, mah brothuh!
Tue, 09/14/2010 - 12:20 — Anonymous (not verified)Right on, mah brothuh!
replica purse
Wed, 09/19/2012 - 16:28 — FletCase (not verified)order an replica purse at my estore WVUElXTs http://www.replica-purses.us/
uggs online store
Wed, 10/17/2012 - 21:31 — Gymouddy (not verified)look at ugg sales online , just clicks away kBzLTqpw http://uggonlineoutlet3.urbanblog.dk/
designer handbags online
Fri, 10/26/2012 - 18:51 — Tripfara (not verified)get cheap designer online shopping , just clicks away UOsHDhde http://designerhandbagsonline.clammo.com/
designer online store
Sat, 10/27/2012 - 07:42 — soxroosy (not verified)purchase designer online shopping and get big save YyhAYeAy http://designerhandbagsonline.clammo.com/
sebastian janikowski jersey
Sat, 11/03/2012 - 01:44 — Jimmyli7ee (not verified)qrpee lamarr woodley jersey
kmuag london fletcher jersey
dckkb lance moore jersey
thdpb matt ryan jersey
tbeed brian dawkins jersey
burberry touch
Wed, 11/07/2012 - 00:18 — sadafouh (not verified)look at burberry polo for promotion code spggdTKF http://www.burberry--outlet.org/
Karen Millen Customised Tropical Tunic Playsuit K431Y
Tue, 12/11/2012 - 02:07 — Karen Millen Customised Tropical Tunic Playsuit K431Y (not verified)liked turkish towel co on fb
brgbzcwm
Thu, 01/03/2013 - 19:38 — brgbzcwm (not verified)dcjcskoz
jxhwcarr
Thu, 01/03/2013 - 20:15 — jxhwcarr (not verified)scmupps
cheap ugg boots pyvepk
Thu, 03/21/2013 - 19:10 — suttokdrrik (not verified)coach outlet zlminirp coach usa yxptrzss coach factory outlet aestkkkd coach factory jsnfwmxo
vintage pleated skirts-28
Fri, 04/19/2013 - 22:16 — vintage pleated skirts-28 (not verified)I've said that least 919009 times. SCK was here