Executive Council Monitors the Social Security Debate

Congressman Russ Carnahan (D-MO) addressing the Executive Council at a meeting held in Local 1 Missouri ’s headquarters.

The June Executive Council meeting welcomed Gerard Scarano to the Executive Board, recognized the achievements of members and Locals through the Craft Awards Ceremony, continued the Millennium Morning Project discussions on expanding BAC’s market share, and received firsthand reports on several issues of concern to our members and their families.

The Bush Administration’s ongoing effort to privatize Social Security was the first order of business for the Executive Council. BAC President John J. Flynn told the Council, “President Bush has been getting a lot of press traveling around the country at your expense trying to convince the public that Social Security is in dire straights, and pushing his so-called private accounts – which even the Wall Street Journal acknowledges would do nothing to strengthen Social Security.”

Peter Hardcastle, who has assisted with social insurance reform projects in several countries led by the World Bank and the U.S. Department of Labor and now serves as the Chief Financial Officer for Cheiron, a benefits consulting firm, delivered a presentation that supported this point. According to Hardcastle, the Social Security “crisis” in the U.S. is really a very small problem. In fact, it’s a problem that’s 35 years away and projected based on slightly pessimistic assumptions. “There are several options available to meet the projected shortfall, and there would have been many more if the Administration hadn’t cut taxes,” Hardcastle told the Council. In support of this position, he presented information compiled for the Center on Budget and Policy (CBP) that shows the cost of two of the President’s initiatives, tax cuts and the prescription drug program, projected out over the next 75 years – the same period used to calculate the pending cost of Social Security. According to the CBP report, these two domestic policy initiatives “will cost at least five times as much over the next 75 years as the Social Security shortfall if the tax cuts are made permanent,” and “will have resulted in fiscal problems much larger than the [Social Security] problem that he [the President] now says he wants to address.”

Recently elected Missouri Congressman Russ Carnahan also raised the importance of protecting and strengthening Social Security in his remarks to the Council. “The truth is that the Social Security System is not broken,” said Carnahan. “The current system is strong, viable, and secure. Frankly, President Bush and Congressional Republicans are creating a crisis where none exists.” Carnahan noted that while there are challenges ahead, they could be addressed with a few minor adjustments, along with fiscal responsibility and discipline, adding, “If Bush really wants to solve Social Security, he should repeal his tax cuts for the rich.”

In wrapping up the discussion, President Flynn noted that “President Bush says he’s the voice of his party, which is somewhat ironic since past Republican presidents not only did their part to keep Social Security intact for future generations – but recognized the foolishness of trying to do away with Social Security, as well as other important programs and laws.”

Flynn thanked Carnahan for the steps he’s already taken in his short time in office to protect the rights of working families, including co-sponsoring the Employee Free Choice Act and the Fair Minimum Wage Act.