April 24, 2005

The Think Tanks' 'Leninist' strategy against Social Security

This is too damn funny. I don't think it's a hoax, but hey it might be. Inside your many Washington think tanks, they use rather blunt language to describe how the public's heads should be warped. A great plan from the year I was born popped up, and damn it's funny. Apparently written for the Cato Journal, it was posted on zfacts.com, a site I haven't seen before, with various info and insinuations. So make what you will of this source, but I think it's awesome:

ACHIEVING A “LENINIST” STRATEGY
Stuart Butler and Peter Germanis
Introduction
Marx believed that capitalism was doomed by its inherent contradictions, and that it would inevitably collapse—to he replaced by the next stage on the ladder leading to the socialist Utopia. Lenin also believed that capitalism was doomed by its inherent contradictions, and would inevitably collapse. But just to be on the safe side, he sought to mobilize the working class, in alliance with other key elements in political society, both to hasten the collapse and to ensure that the result conformed with his interpretation of the proletarian state. Unlike many other socialists at the time, Lenin recognized that fundamental change is contingent both upon a movement’s ability to create a focused political coalition and upon its success in isolating and weakening its opponents.

As we contemplate basic reform of the Social Security system, we would do well to draw a few lessons from the Leninist strategy. Many critics of the present system believe, as Marx and Lenin did of capitalism, that the system’s days are numbered because of its contradictory objectives of attempting to provide both welfare and insurance.

All that really needs to be done, they contend, is to point out these inherent flaws to the taxpayers and to show them that Social Security would be vastly improved if it were restructured into a predominantly private system. Convinced by the undeniable facts and logic, individuals supposedly would then rise up and demand that their representatives make the appropriate reforms.

While this may indeed happen, the public’s reaction last year against politicians who simply noted the deep problems of the system, and the absence of even a recognition of the underlying problems during this spring’s Social Security “reform,” suggest that it will be a long time before citizen indignation will cause radical change to take place. Therefore, if we are to achieve basic changes in the system, we must first prepare the political ground so that the fiasco of the last 18 months is not repeated.

First, we must recognize that there is a firm coalition behind the present Social Security system, and that this coalition has been very effective in winning political concessions for many years. Before Social Security can be reformed, we must begin to divide this coalition and cast doubt on the picture of reality it presents to the general public.

Second, we must recognize that we need more than a manifesto—even one as cogent and persuasive as that provided by Peter Ferrara. What we must do is construct a coalition around the Ferrara plan, a coalition that will gain directly from its implementation. That coalition should consist of not only those who will reap benefits from the IRA-based private system Ferrara has proposed but also the banks, insurance companies, and other institutions that will gain from providing such plans to the public.

As we construct and consolidate this coalition, we must press for modest changes in the laws and regulations designed to make private pension options more attractive, and we must expose the fundamental flaws and contradictions in the existing system. In so doing, we will strengthen the coalition for privatizing Social Security and we will weaken the coalition for retaining or expanding the current system. By approaching the problem in this way, we may be ready for the next crisis in Social Security—ready with a strong coalition for change, a weakened coalition supporting the current system, and a general public familiar with the private-sector option.
[........much intrigue.....]
Detaching Supporters of Social Security
The final element of the strategy must be to propose moving to a private Social Security system in such a way as to detach, or at least neutralize, segments of the coalition that supports the existing system. A necessary step toward this objective is to honor all outstanding claims on the current system. Without such a commitment, we can never overcome the political opposition to reform, because the retired (or nearly retired) population will continue to strongly oppose any package that threatens to significantly reduce their benefits. Retaining the obligation to fund existing liabilities, however, will necessarily place constraints on the mechanisms that can be used to move the country towards a private system.
[.....]
Detaching workers who have made substantial tax payments into Social Security may not prove to be too difficult. A number of proposals have been put forward in which the worker’s accumulated “contributions,” plus interest, would be given to him in form of an interest-bearing bond, payable at retirement.” This bond would have a market value and could be sold, with the proceeds to be invested in a tax-deductible IRA. Using an appropriate version of this proposal should make it possible to gain some support even fi’om those who have a substantial stake in the current system.
Conclusion
The last two years have demonstrated beyond a doubt that Social Security can be reformed only by treating the issue primarily as a political problem. There is little point in arguing over the nuances of theoretical plans ifthe political dynamics are not altered; no amount of logic will overcome an unfavorable coalition of interest groups. It is also clear that the strategy we adopt must be flexible. It would be self-defeating to lay down a rigid blueprint and blindly adhere to it. Indeed, we must be prepared to refine segments of the plan, such as the opting-out mechanism or the design of the “super IRA,” to meet the changing political circumstances. Finally, we must he prepared for a long campaign. The next Social Security crisis may be further away than many people believe. Or perhaps it will occur before the reform coalition is strong enough to achieve a political breakthrough. In either case, it could be many years before the conditions are such that a radical reform of Social Security is possible. But then, as Lenin well knew, to be a successful revolutionary, one must also be patient and consistently plan for real reform.
Posted by HongPong at April 24, 2005 09:03 PM
Listed under News , The White House .
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