CNN TV SCHEDULE ANCHORS & REPORTERS CONTACT US HLN

March 5, 2009

Rove: Presidential Bait-and-Switch; what Obama's delivering

Posted: 07:40 AM ET

Barack Obama won the presidency in large measure because he presented himself as a demarcation point. The old politics, he said, was based on "spin," misleading arguments, and an absence of candor. He'd "turn the page" on that style of politics.

Last week's presentation of his budget shows that hope was a mirage.

For example, Mr. Obama didn't run promising larger deficits - but now is offering record-setting ones. He'll add $4.9 trillion before his term ends and $7.4 trillion if given a second, doubling the national debt in five years and tripling it in 10. Mr. Obama's deficits will be much larger than he admits because he relies on rosy economic assumptions and gimmicks that mask spending and debt (like assuming popular new programs he supports won't be renewed).

Nor did Mr. Obama run promising more earmarks. Instead, he said he'd reform the earmark culture and "scour the federal budget, line by line, and make meaningful cuts." Now he wants to wave through a $410 billion omnibus spending bill with about 8,500 earmarks. This is on top of the $787 billion stimulus bill signed into law two weeks ago.

His justification comes to us from the White House's budget director, Peter Orszag, who recently called the omnibus spending bill "last year's business." But it will fund the federal government for the next six months. Mr. Obama could veto the legislation or push congressional Democrats to ditch the earmarks. But he has given little indication that he will do either.

READ MORE OF ROVE'S commentary HERE

Filed under: Karl Rove


Share this on:
Michael C. McHugh   March 5th, 2009 7:52 am ET

Naturally Obama is running huge deficits. He inherited a capiatlist system that is having a near death experience, and he is using deficit spending to try to keep it from collapsing.

Now I'm sure that a man as intelliegent as Mr. Rove knows who John Maynard Keynes was and what type of measures he advocated to bring an economy out of depression. As a conservative, he may not like these methods, but he should not pretend to be ignorant of them.

Also, if he knows any history at all–and my guess is that he probably does, unlike his former boss–then he knows that only the massive deficit spending in World War II finally ended the Great Depression.

Mr. Rove should also realize that if President Obama's efforts fail, there are plenty of people like me around the world who are much less interested in the restoration of capitalism. Indeed, I am a fairly mild anti-capitalist and would be content if America was more like Denmark or Canada. Mr. Rove surely knows there are much more unpleasant forces in the world on both the far right and far left, just waiting in the wings for their chance if the system collapses.

Republicans should think about all this carefully before they attack Obama too ruthlessly. In times as dangerous as these, it's not a good idea to play with fire.


karen & louise   March 5th, 2009 8:32 am ET

sorry, Mr. King..we're glad we did not give birth to Mr. Rove ...


RJ Washington   March 5th, 2009 8:34 am ET

Dear Mr Rove,

Your twenty minutes in history is up.

As part of the team of leadership that gave us the illusionary economy for the last eight years fuel by the subprime housing industry and deregulation of our financial institutions which has brought our county and the world to the worst economic crisis in history your input has no value.

Please take what ever monetary benefits you managed to fleece from the citizens and go away. I am sorry if you invested those gains with Bernard and now seek to rebuild your fortunes, we simply can not afford to subsidize your agenda.


simonsays   March 5th, 2009 9:11 am ET

This is not about Capitalism or Socialism. It's about the promise of "change" and the promise to "scour the federal budget, line by line".
He said he would do it and he is not keeping his promise. This is our money he is wasting. It's the same old thing. He is not any different than any other politician once they get in office.


Terry, TX   March 5th, 2009 9:34 am ET

The tax cheat Secretary of the IRS... claiming this is last years business ...and he doesn't like the pork .... so why doesn't President Obama Veto it and send it back and fix it. This is not last years budget ...this is Obama's budget... last time I heard he was president.

President Bush spent the 350 billion of the tarp and left the other half for President Obama to spend as he chose....Obama asked him to. The Pork Job Stimulus Package $800 billion is Obama's too....he let Pelosi write it... and we know he did not let the representatives read it. Now the budget pork is last years... yet it goes over his desk...again Bush didn't sign it to allow the President to govern over it... it's not last year's budget... it's HIS budget.

I guess he doesn't want to govern and make the hard choices... can't offend Pelosi or his donaters. The line.... I inherited it...it was on my desk. My answer .... you campaigned for the job, you knew what occurred with Fannie and Freddie and you knew the state of the economy.

You can't handle it ...without crying.... step down.


simonsays   March 5th, 2009 9:47 am ET

One of the pork items in this budget is $30 million for protection of a mouse that lives in the woods in Pelosi's district. Does anybody out there actuallly think that this is money well spent? How can Obama look at that item and not crack up laughing?


Dave of Detroit   March 5th, 2009 9:57 am ET

Since Karl Rove is the master of "Bait-and-Switch", he should be listened to-now take the case of the 911 attack from Afghanistan and Bin Laden, The U.S. attacked and defeated Sadaam Hussein so the Vice-President could save his "Asbestos" killing company with no-bid contracts and big oil could get control over the world oil supply at a cost to the taxpayer that is yet to be determined. Not to mention "Collateral" damage in the deaths and maiming of thousands of innocents and American Soldiers getting totally screwed up lives and mistreatment from our V.A. But, the very fact that any member of the Bush Administration is concerned about our National Budget is refreshing with the record deficits they have piled up under the guise of "Free rade and Free Market" which actually means Free from any restraints and controls that would actually mean a President does have a budget to balance. Bush knew he could just go deeper in debt and print some more cash! Go Rove-Rush knows what you are talking about!


simonsays   March 5th, 2009 10:06 am ET

This is not about Rove or Bush. They are no longer in control. This is about our current President promising he would be diligent with our money with regard to pork and then not keeping his promise.


gee   March 5th, 2009 10:37 am ET

the mess bush chenny rove and company left the country he had to make big and bold decision put those three liars in prision


Pietro Sirianni   March 5th, 2009 11:00 am ET

Dear Mrs Rove,
The 1% of the budget of which you speak are earmarks left over from the Bush administration. Even though these are Bush era earmarks they will still create jobs in one way or another, thus stimulating the economy.

The only people that believe the far right rhetoric are those who themselves are positioned far right. This parlance results in nothing more than a self-satisfying diatribe and waste of the tax-payers time.

It is analogous to the child on the playground who loses the game then searches for reasons his opponent should not be the winner. "He had better sneakers," cries the loser. The rest of the children see him for what he is and distance themselves from him. Much like the American public has distanced itself from the republicant party.


simonsays   March 5th, 2009 11:55 am ET

$30 million for protecting a mouse is not a job stimulating item. Bush didn't put this earmark in, Pelosi did. Obama has a chance to kill these stupid earmarks. If he doesn't, he's no better than Bush.


debbie   March 5th, 2009 12:02 pm ET

What more can they complain about, President Obama is doing what he said with what he inherited and the Republicans expect miracles in 3 months. It took 8 years to put us here and they expect the President to clean it up immediately. What nonsense and stupidity are Republicans building their mind set on? Every thing and I mean everything our President is trying to do goes under the microscope to the Republicans, it is shameful. The Dixie Chicks said one sentence about President Bush and they were history but Rush belittle's the President ,says horrible things about him , and with all his hatred toward our President no one cares what Rush says. I find that is more degrading than anything the Dixie Chicks ever said toward Bush. I'm surprised there is not a back lass against him, because there should be. What the Dixie Chicks said years ago came to be true years later so why does Rush and the Republicans get by with slandering the President?


simonsays   March 5th, 2009 1:19 pm ET

Obama is not doing what he said he would. He said he would not allow earmarks. He is allowing them. He lied to us. This is not slander, it's just the simple truth.


sean brizendine   March 5th, 2009 1:54 pm ET

larry give me a break with this, what other choice does obama have? republicans would like to see darwins theory of natural selection eliminate the weak and let the strong survive at the cost of everyone.
"sean in santa rosa"


simonsays   March 5th, 2009 2:57 pm ET

There are over 8000 earmarks for over $8 billion. Don't you think he should write each tax payer an equal portion of that money instead of wasting it on worthless programs? Wouldn't that stimulate the ecomony more?


Pietro Sirianni   March 5th, 2009 3:09 pm ET

They are not earmarks, they are projects that appear in every budget.

Its not like when Bush and Cheney gave their Defense contractors blank checks to fight a war we shouldn't have been in.

Who was the biggest company contracted by the government in the Bush years? Oh yea, Cheney's Haliburton.

Just face it the republicants are all about making the rich, richer and keeping the little guy down. Everything else is just misdirection to keep the general public distracted.

Bread, and circus.


Michelle   March 5th, 2009 3:50 pm ET

Republicans should be at acceptance by now it's getting old and tired. President Obama won the election by both the electoral and majority vote. The people have spoken and he is doing what the people elected him to do,


Eleanor   March 5th, 2009 4:02 pm ET

Sorry Carl President Obama *inherited* yours and Bushs legacy
you know the legacy that was all for the RICH and the CROOKS on wall street ..you know your close friends
not to mention the illegal war in Iraq that sucked up trillions!!!
President Obama is trying to fix that MESS you left behind.He is the one who is for the average hard working american
Personally I dont know how YOU Bush and Cheney sleep at night!!!


Eleanor   March 5th, 2009 4:06 pm ET

Oh and by the way this big bill with PORK .....the media fails to mention that 40% of it is *Republican pork* even some by the ranting
Lindsay Graham ...you know McCains best buddy


atsegga   March 5th, 2009 6:11 pm ET

The Borgen Project has some good info on the cost of addressing global poverty.

$30 billion: Annual shortfall to end world hunger.
$550 billion: U.S. Defense budget


gee   March 5th, 2009 7:20 pm ET

put a secret buget with d. chenney name on it and the republicians will vote 100% for it


Karin Gillette   March 5th, 2009 9:22 pm ET

I am a 40 year old female american who I lived in Singapore from 1995 to 2001. I had both my boys there. I had the opportunity to have lengthly stays in other socialized countries. Ask me about socialized medicine...I can give the answers straight up. Question to address regarding the care in other countries are: What are the percentages of malpractice???? What kind of insurance do doctors and hospitals have to carry and pay????? you will be surprised in the response. in most countries, everyone (EVERYONE) is taxed 50% of their pay no matter what their annual income is. Secondly, most doctors don't make money in socialized medicine so they go private, in turn, it makes the patients have to wait longer to get their operations. Lastly, most people pay to have private medical care and schooling. The grass is not greener. Our government should research this and let the americans know the real truth.


Georgie   March 5th, 2009 9:45 pm ET

That's interesting, so WHAT DO YOU BELIEVE PRES. OBAMA SHOULD DO TO SOLVE THE "BUSH ECONOMY DISASTER"??? HUH?? I mean if you MR. ROVE THE CRITIC, know so much of what is wrong with the President's plan, then I assume you must know exactly what to do to fix this economy, right? Oh and if so, why didn't you bring it up when it began?? Let me guess you figured it out right after Pres. Obama came up with his plan?? YEAH, RIGHT!!
At least, let the bill fail if it's that bad and then you can criticize it all you want, until then you're not helping anyone, just being annoying.


Sheila   March 5th, 2009 10:00 pm ET

Karl Rove needs to go back under the rock he climbed out from and stay there hes a useless human being.


Jeanette   March 5th, 2009 10:00 pm ET

CRY CRY CRY....No one ever said a word when you got your royalities, hand outs, golden parashoots daily weekly or monthly or even when you held on to your rule of I'll scratch your back if you scratch mine!!!!!!!!!!!! Stop crying, the truth is at hand, it's all in black and white ! Your sheets have been removed! Your uncovered now! You have no where to run no where to hide!!!!!!

What is so Interesting about all this bad mouthing you are attempting is no Republics or Conservatives alike have admitted thus far 1) 8 years they made this mess, 2) President Obama inherited this mess trillion deficit and two unneccessary wars from GWBush & company and with all the "Golden parashoots" he passed out to his "buddies", 3) President Obama has to clean up the mess (each of you went along with while the getting was good) and 4) finally the more you make a "big "deal about Presidents Obama progress or attempts for change the more common people see the "Real" picture. You lied, you stole and you can't do it anymore!

President Obama can not address the "Real issues" at hand b/c he has to clean up the mess left. Futhermore, all these stones being thrown at President Obama are making you all look stupid....The otherside/downside to your wealth and greed should have been thought about when GWBUSH & company continued to freely give you the handouts and "Golden parashoots (you know it was wrong but ou kept taking (give me more, more, more) and now here we are.
No one said a mumbling word, no one opened their mouths.
Idiots free rides don't continue always! LOL! Everyone knows that.

Stand President Obama Stand!!!!! If you don't stand for something you'll fall for anything. Keep up the good work.

My advise to "ALL THE HATERS" get over it, get on the ride. Change has come, Change is now! 4+4= President OBAMA. Do your thing, Do your thing! Whatever it takes!!!!!!Backing you 100000000000%


Judith   March 5th, 2009 10:05 pm ET

We that voted for President Obama said we wanted a change.
He campaign on it.
Anyone that voted for him knew that our economy was in a mess along at the time of one war of Iraq costing us big $$ and another one coming.We were in reality as we are now.Bottom Line President Obama inherited this.Anything that will bring our Country back to health we should do because we're all in this together.The dividing should stop.I'm tired of the GOPs playing the Fear Card.They are looking out for themselves and cares less about the middle class or the poor.The GOPs want two classes of people,the Rich and Working Poor.

Ones with college educations that had great jobs are now suffering with job loss and healthcare.
President Obama had said,anyone that has healthcare can keep that or change it and ones that don't have no health care would get the one they are offering.He has not said Everyone will have that health care.Think about how many that are walking around with No Health Care.Some are paying $1,000 per month like the young couple on the news that had to make a choice either pay that for a sick child or pay their mortgage.Some people that pay for Cobra Ins pay close to a $1,000 per month.How is this possible for people that have lost jobs or had the hrs of work cut down while paying for a mortgage or rent buying food and paying all the other bills raising their kids.
These people shouldn't be too in a hurry to raise heck about the Health care that the President is talking about because they don't know if next week or month they might be in the same boat like thousands.

As far as malpractice.Our gov has brought in doctors from other countries that are working in clinics around the States and our Gov has been paying for their malpractice and other ins.This has been going on since Bush was in office.Many do not know this if they don't know someone in a family that is on medicate.

As far as earmarks.Lots of jobs are in earmarks and it will take time to go through each one.Many of the GOPs around the States have huge $$ for the earmarks which is not being said on all stations.The GOPs only tell what they want and leave things of interests out.

As far as Rove.First he said he wouldn't tesitify then he said he's willing.How many of us could have gotten away with it?Any of us would have ended up in jail and that's exactly where he should have been.How about Libby?


Terry, TX   March 5th, 2009 10:10 pm ET

It's not the Bush Economy Disaster... It's Obama's he is the President.

The tax cheat Secretary of the IRS… claiming this is last years business …and he doesn’t like the pork …. so why doesn’t President Obama Veto it and send it back and fix it. This is not last years budget …this is Obama’s budget… last time I heard he was president.

President Bush spent the 350 billion of the tarp one and left the other half for President Obama to spend as he chose….Obama asked him to. This is crap.... we have lost site of job stimulus

The Pork Job Stimulus Package $800 billion is Obama’s too….he let Pelosi write it...and we know he did not let the representatives Read It.

Now the budget pork is last years… yet it goes over his desk…again Bush didn’t sign it to allow the President to govern over it… it’s not last year’s budget… it’s Obama's budget....he has veto power.

I guess he doesn’t want to govern and make the hard choices… can’t offend Pelosi or his contributors...can't veto it and send back to fix.

The line…. I inherited it…it was on my desk. My answer….you campaigned for the job, you knew what occurred with Fannie and Freddie and you knew the state of the economy and you accepted the job.

You can’t handle it …without crying…. step down.


Judith   March 5th, 2009 10:32 pm ET

Terry from Tx,
The only ones I hear crying is the GOPs.First they had Palin who stretched her made up stories and has enough in her own back yard to clean up.Than they had the heads of what we thought of the GOPs who complain about taxes of small business,which they care only about their own wallets.Then they brought out Steele who is black to go after President Obama because they thought people would call it racist if they did it.By the way Steele is ask to step down of the RNC.Then they had Jindal who also stretched stories because he re-track it the next day.Jindal talk like he was talking to pre k kids as Mr Rogers when he had a show.Then another black man.Then nothing help so they pull Rush L out who had said he's head of the GOP Party.3 different Republicans apologize to him.Why?? Rush is nothing more than a big mouth who has a radio show and acts like he popping his pills again.He is not elected to a office.Rush is a 4 letter word without the R and put the B in as Bush.
These GOPs are looking more silly each day and all in Washington should step down without a retirement check each month,because they are all more worried what Rush is saying than working for the people in their Party.

By the way Rep Senator Ted Stevens of Alaska if convicted will continue to get a retirement check of over $1,000 per month untill he passes on even if he's sitting in jail. And these guys put the working middle class down saying they should take pay cuts.


Pietro Sirianni   March 5th, 2009 10:42 pm ET

I wouldn't mind having to wait an extra month to have a surgery if it meant I did not have to sell my house and spend my child's college fund to have it.

Call me crazy..............but thats not such a bad deal.


John   March 5th, 2009 11:19 pm ET

Karl Rove, while he may be a knowledgeable individual, was an unelected official in the last admisistration who had way too much influence on policy. I am not now ready to accept him or his advice because I have already seen in which direction he is inclined to go.

As for the argument by many politicians and unfortunately our current administration, if this spending bill were last years business, it would have been taken care of last year. I do not buy the argument that since it is last years business, President Obama must sign it. There is still time for President Obama to single out the obvious pork and take a stand against it. I realize that congress has refused over and over again to give the President the Line Item Veto and that he has to either accept the bill as is or veto it but I think it is a mistake for him to just say it's last years business and avoid the fight. There is too much money at stake for him not to at least express his disagreement with items which do not belong there.


janette tx   March 6th, 2009 12:22 am ET

Terry
Don't like the president-fine .Move to Alaska
doggonit.....next door to the disfunctional Palins.


ed,vancouver canada   March 6th, 2009 1:51 am ET

Where is the 20 trillion dollars lost in the real estate market hiding?
all those homes sold to someone generated profits.
weird that the money is not in america.or the banks.
so it is one big ponzi scheme.
could it be that mortgage investment blocks and investment funds were sold to foreign interests like oil based countries and the drug cartels?with money owed and a threat of terrorism ,money is being paid back?why no account of where the billions are going?
was the terrorism caused by the fact that money was lost,and since it was based on wall street,the reason to attack it?
The u.s. economy does not have the power to restore that kind of loss that was saddled on the world markets,until all the markets rebound.
looks like the drug dealers are winning.


Amanda Roche   March 6th, 2009 6:00 pm ET

For someone who thought himself above the Law, disregarded its mandates, ignored the Constitution, and contributed in taking this Nation to the verge of bankruptcy, with a deficit that has left our economy in a moribund state, Mr. Karl Rove has a great deal to say. When he was wearing his cowboy hat, firing people who opposed him and the Bush Administration out of their jobs, and committing offenses worse than Watergate, I didn’t hear a word of complaint from him. It’s interesting how the Republicans have become vociferous, oppositional, and neonatal since Barack Obama became President of the United States less than two months ago. I assume Mr. Rove, as always, has the right answers, and only he can decide what’s pork and not pork, what will work and what will not work, what is best and what is detrimental to the nation’s recovery. And I suppose we’re in this dire recession because of the Dems and Barack Obama, and nothing to do with Mr. Rove’s deeds and the deeds of the Bush Administration. I think the Republicans suffer from amnesia, and their long term memory has been impaired by the I SEE NO EVIL/HEAR NO EVIL. I’m sure that in a Court of Law, you will hear the word, “I don’t recall” 90% of the time. The Republicans have become the party of NOs and they are doing everything possible for President Obama to fail. I would say that’s the meaning of reaching across the aisle, civility, maturity, grace, and nobility. I’ll recommend the British Empire to give Republicans a noble title. I am also looking forward to a full and thorough investigation of the Bush Administration. That ought to keep the Republicans silent for a while and abstain from vulgarity and politically incorrect behavior.


Joe Colangelo   March 6th, 2009 8:06 pm ET

Why is the corporate American press giving this man a platform? Where is my shoe? On a lighter side here's a joke for ya, "What's the definition of a capitalist? "Someone who tries to sell you the rope to their own hanging"
Back in the box, Jack.
Sincerely,
Joseph Colangelo


Donna Willis   March 6th, 2009 9:16 pm ET

Larry,

The unemployment rate will definitely increase for African-American workers. My son lost his job due to whites wanting him out, in order to provide employment to someone of their color. UPS is not a stable employer for minorities, and African Americans are the first to be set up for firing.


Neicey in Ohio   March 6th, 2009 9:16 pm ET

I Never will forget when Karl R was sitting on the stage and that lady came up to him and said something to him, he just sat there like don't tell them i only love me me mee.


denis stergiotis   March 6th, 2009 9:20 pm ET

If you are living in a big house...rent rooms to get extra revenue.
Share your home with others that are going through similar situation.

If you can't rent rooms, sell the house and move to smaller home or apartment.

If you can't afford apartment , rent a room, move to an area where rents are less expensive....

Let go of possesions you are attached to.

The most important treasures are the ones in your heart and in the hearts of those special people around you.

Simplify your life.

Change your philosophy of life...


denis stergiotis   March 6th, 2009 9:40 pm ET

The economy won't change until Americans bring back some of the jobs that have gone to third world countries.

The many jobs went to third world countries mostly because labor costs are cheaper in these countries.

It seems some American Companies ,like some Wallstreet types and some Banks have betrayed Americans and their country .

These "Traitors " on wall street that betrayed Americans trust and are holding Americans hostage.

They pillaged the pension funds of it's citizens , preyed on their homes, robbed the American taxpayers , and now asking the ordinary Americans to bail them out with their hardearned taxpayers money.

These are the same people that paid themselves millions in salaries while most Americans struggle to hold on to their homes.

Their predatory mortgages, greed, and unethical behavior is shameful.

What is even more shameful is that the Republicans forgot that the government is supposed to be a government "of the pepole , and for the people " they did not regulate Wallstreet and the Banks.


denis stergiotis   March 6th, 2009 9:50 pm ET

How can public healthcare , public education, and sustainable environment be bad for a country?

The business lobby wants to get Obama to focus on economy and not on healthcare, education, environment.....How convenient!

They are trying to hold a knife to his throat and force him to give in to their agenda !

They are forgetting that Obama was elected by the people and will work for the people . if the banks can't get their act together, then nationalize them .


denis stergiotis   March 6th, 2009 9:52 pm ET

Obama has ben in for six weeks and they want him to fix problems that the Neo -Conservatives created over 8 years!


denis stergiotis   March 6th, 2009 9:57 pm ET

We do not need Free trade ...we need Fair Trade!
If they build a car in China , then they should sell it to the Chinese!

If the Chinese want to sell in America, then they should maybe make parts in China and then Assembled in America. this way we have jobes in China and Jobs in America!

Same with other products that went to overseas!!


denis stergiotis   March 6th, 2009 9:59 pm ET

Tell Steve that his Right Wing /Neo Conservative / Republican /Bush Policies led America into this mess!

Neo-Conservative ideology failed America , it is time for a more European approach.

A balanced approach.


denis stergiotis   March 6th, 2009 10:04 pm ET

The Neo-Conservatives let the Private Sector go wild with greed and this is what greed does to people, commnities and nations.

The Roman Empire fell because of corruption.

Government , Public Sector and Private Sector can work together to rebuild America.

Like Mr Miyagi use to say "We need balance"

Denis


denis stergiotis   March 6th, 2009 10:16 pm ET

The "Capitalistic Edge " if not regulated in the hands of the greedy turns into a knief that can be used to expolit , rob and ,hurt people.

In the hands of a good man, it an be used to cook nice meals, carve sculptures ....

The Government needs to regulate, and intervene when some Banks and some Wallstreet types rob Americans from their Homes , and Pension Funds . This is especially true wen they have the gull to come begging for handouts to bail them out !


JIM CARROLL INTERNET FREE PRESS   March 6th, 2009 10:18 pm ET

Social Security
“Projections indicate social security will be broke by 2010.” “Baby-boomer looking at empty social security coffers.” Headlines, such as these proclaim the imminent insolvency of the Social Security System. Politicians of almost every persuasion warn that action must be taken immediately to avert certain bankruptcy. The government must, they say, reduce spending on Medicare and Medicaid and increase payroll deductions on workers or employers or both.
The truth of the matter is that the system cannot go broke as long as there are a sufficient number of people working to produce the goods and services necessary to meet the demand of consumers. So long as adequate quantities of goods and services flow from the producers to the consumers, the issue of money supply is a moot point. We should recall that money in and of itself is worthless. Money functions only as a medium for the exchange of goods and services...commodities which do have real, intrinsic and tangible value. If we take care to maintain the equilibrium between the supply of goods and services and their demand, monetary equilibrium will inevitably follow, and the question of a bankrupt Social Security System will become meaningless.
The 21st century will see baby-boomer reaching retirement age and changing demographics at a dizzying pace. The ratio of workers producing goods and services to retirees consuming them is steadily decreasing. That has been the trend since social security’s inception. In the 1940’s there were 12 workers for every retiree. Today the worker/retiree ratio is about 3 to 1. By 2010, there will only be two workers for each retiree. As these numbers become reality, our real worry should not be money inflow versus money outflow. Rather we should be concerned with whether there will be sufficient numbers of people in the work force to meet the demand generated by all those who will be consuming...those additional millions of retirees, who fuel the economy with spending but who produce no goods and services themselves. Again, if production and consumption are balanced, the money supply will self-adjust.
But how do we ensure that this equilibrium between production and consumption is sustained? The most obvious way is by keeping more people in the work force for a longer period. One way that may be accomplished is by extending the age of retirement from 65 to 68 or 70. How can we justify advancing the age of retirement, and how would that help alleviate the imbalance? Over the last several decades, medical science has steadily increased the human life span. At the time of social security's inception in the 1930’s, the average worker lived only to age 64; and, with retirement age set at 65, the number of those collecting benefits was relatively low. The surplus grew. But today the demographic picture is much different. The average life span is some 10 years greater. That, of course, translates into more people collecting benefits for a longer period of time. It also means there are many more consumers demanding goods and services...services produced by a shrinking (in relative terms) work force. Keeping individuals in the work force longer will ease pressure on two fronts: It reduces the financial drain on the system, and it ensures that sufficient numbers of workers will continue to produce goods and services to meet the increased demand. Productivity and consumption will once again be in balance.
Additionally, to encourage the elderly to continue working, flexible work schedules, both in hours per day and days per week should be adopted and the cap on earnings should be eliminated. Older workers should be allowed to earn as much as they want without the handicap of having their social security benefits reduced. With this incentive they may continue working for as long as they desire. These two steps, alone, will help maintain a labor supply sufficient for producing the goods and services demanded by increasing numbers of retirees.
To ensure that their later years are even more comfortable, employees should be encouraged early on in their careers to contribute to IRA’s. And employers should be allow to contribute deductible matching funds to the employee accounts. Upon retirement, these funds could be used to supplement social security payments.
The Social Security System trust fund, contrary to popular belief, has amassed a substantial surplus...some one-half trillion dollars to date. This money is not presently being invested so as to produce maximum return. Remember, social security is a pay-as-you-go proposition. As long as we make sure that we produce as much we consume, the system will continue to function, working for the next generation... and generations ad infinitum. The Federal Government has the Constitutional power to create money and should if needed to have a balanced money supply.


denis stergiotis   March 6th, 2009 10:34 pm ET

The only one crying is the Neo-Con /republicans that crated this mess !

They betrayed America and it's people.

They took a grat nation and brought it to is knees!

The American people have seen through their lies and will now stand behind Obama to rebuild America.

An America for all!

An America with good Education for all it's Citizens and Healthcare for all Americans !

Don't listen to the Lobbiests and the Neo-Con Spin Masters as they engage in sophistry!

Shine the light of truth on the cloud of lies!

America will overcome!

The first step was to elect a Government of the people that is for the People ! Now stand up and don't waiver .

Be strong and you shall overcome!


denis stergiotis   March 6th, 2009 10:44 pm ET

Social Security was on its way to being broke because of the neglect of the Neo Cons /Republicans over the last 8 years.

It did not go broke in 6 weeks!

The Neo Cons neglected Social Security because they did nor believe in it!

Obama does because it is a program that will benefit Americans just like Healthcare and Education.

A nation is like a home. The basic units of the home are bricks. if these bricks are weak, the home will collapse. Well the same goes for the Nation. if ordinary Americans and their families do not have Good public Education, Public Healthcare, (Public Safety Net ) , they will be weak and when the Citizens and Amercan families are weakened the nation will be weak and can collapse!

Americans 'don't mind paying for programs with their taxes if it means that it will make a better and fairer America!

Americans won't mind paying more taxes if the money is used to give them good services and programs that makes America a better place to live!

True Americans put their country and fellow citizens before profits and greed!


popefromdacurb   March 7th, 2009 12:47 am ET

Unemployment,low wages, underemployed even with a B.A. degree and classified as "Best Qualified " on State Job test, still unemployed. I started working as a janitor just to manage somewhat, two years ago.The last job I was injured on the job, no fault of my own and I did not sue. I never went back because no improvements regarding my safety were enforced. Still I did not sue. Now unemployed, even finding a job as a janitor seems impossible. However, I wrote the White House, CNN...several times to various about the following idea regarding unemployment. I needed to know if it would work. Please those of you who are more informed...can you comment on this idea? Thank you.

I would like to suggest to you what I believe would help all who are being laid off.

Instead of laying off an employee, why not give them (the employee) the option to continue to work at the unemployment rate of pay...still keeping their health insurance...still being productive and even cross-training to do other jobs necessary for the growth of the Company, until things improve and they will be the first rehired....possibly with a bonus. I know when I was no longer working, I just became depressed...because I had to work , I needed to work. Today I still have not found another job and I receive unemployment. I rather be working, I rather be productive. I feel that we can better serve ourselves, both employers and employees with this type of an option. Production will not fail, companies will not go under, people will not feel disregarded or powerless, and we the employee will still be active, productive and appreciated. I really want you to hear this idea and see if something like this will help everyone concerned. If not please tell me why.


German   March 7th, 2009 12:57 am ET

I am really disappointed how the administration it`s handling this crisis
you can not blame jobs wheather their going overseas ,shipping out of the country.,That`s typical excuse liberals are using these days.
When did American Stop believing in capitalism???
All this happen when we started bailing out all these corporations
we must let business fail and banks to fix the problem.
It will be a biter situation losing million of jobs but the rebound will be a lot more quickly.
If we really wanna believe that jobs are going overseas then how you explain those people in their perspective countries can`t still find a job
Have America lost it`s competition ability globally?? I don`t think so
Let`s retool America today and show the world what we can deliver for them.
We know how to innovate things and create tons of new product lines and we know how to compete with the rest of the world.,Let`s not forget all those foreign companies in America are generating hundred of thousands jobs .,sure we ship jobs overseas but also bring jobs from overseas to America..,Ask yourself this question we can still compete fairly and innovate??? I really think so.,Let`s not think about all these entitlements that the government has arranged for us.. German ,MN


Purnell Kankakee IL.   March 7th, 2009 3:59 am ET

put this traitor in prison!


Ty   March 7th, 2009 9:24 am ET

Mr. Obama gave cheap gifts (essentially some Blockbuster DVDs) to PM Gordon Brown of England. Methinks he's a cheap tipper as well. However, he's very generous with our tax dollars (in redistributing America's wealth) - his roundabout way of paying slavery reparations to black have-nots without vote approval.


Ty   March 7th, 2009 9:28 am ET

Democrats will always diss Mr. Rove...because he's not on their side.
It's not about Rove so much as about Democrat partisan prejudice.


popefromdacurb   March 8th, 2009 3:14 am ET

I remember when I was a child and my grandmother would tell me about the stories in the Bible and how there was a time when mankind was blind to lies, Then one day, one bad apple ruined it for everyone and mankind became blind to the truth. She explained to me God had the whole world in his hands and entrusted mankind to handle Life with truth , love and the light of his Holy word. We chose not to be obedient and that is why mankind cannot handle the truth. We love money, power, and play God with our lives and others. The truth is and always have been simple. Get rid of the political engine called money. Yes this will never happen. Yes you may think I am crazy. Yet that little girl still wonders what this world would have been like if mankind lived to let live, freely and put people first instead of money. I believe that is what Jesus was teaching us to see again....THE LIGHT INSIDE THIS DARK HOUR....coming to an end.


Comments have been closed for this article

Keep up to date with Larry

Follow him on Twitter

Become a fan on Facebook

Contact us
Go Behind The Scenes

Producer

LARRY KING LIVE'S Emmy-winning Senior Executive Producer Wendy Walker knows what it takes to make a great story.

With anecdotes, provocative emails, scandals, show transcripts and insights into Walker's long working relationship with Larry King, her new book PRODUCER issues readers an invitation to listen in on the most intriguing conversations on the planet.

Order from:
Amazon
Barnes & Noble
Borders


King of Hearts

Larry King's King of Hearts

Saving a heart a day is the goal! Learn more about the Foundation and it's efforts to help the uninsured

Visit the Larry King Cardiac Foundation.


subscribe RSS Icon
twitter
Categories
Powered by WordPress.com VIP