Propaganda in Action
Entitlement critics have been disseminating their propaganda forewarning catastrophe since the 1980’s.
Peter G. Peterson, former chairman of the Blackstone Group and founder of a foundation under his own name, wrote a provocative book entitled Gray Dawn. Even the title reveals his sentiments. An aging population is, indeed, a gray prospect, literally and metaphorically. He writes, “If we do not reform tax and spending policies, the benefit outlays for just five programs — Social Security, Medicare, Medicaid and federal civilian and military pensions — will exceed total federal revenues by the year 2030. This would leave zero tax revenue for any other purpose — not even for interest payments, nor for national defense, nor for education, nor for child health, nor for the federal payroll.”
One way Peterson and his allies have been successful in shaping pubic opinion over two decades is to amalgamate Social Security and Medicare into one unified concept.
Although these two programs are very different and have different financial models, unifying them under the banner word of “entitlements” makes both programs equally objectionable. And, of course, to be entitled to anything challenges cherished American values such as meritocracy, individualism and restrained governmental power. Entitlements are anathema to truly free markets and harbor hints of socialism.
With the force and reach of substantial marketing resources, as well as media too easily lured by gloom and doom stories about “greedy geezers,” the critics continue their agenda of co-opting media attention and reporting. They spin horrific tales of future crises; media lap it up, relishing these headline-winning ominous tones of future calamity and intergenerational inequity.
Charles Schwab, the securities brokerage and financial services company, recently conducted a nationwide survey of all major generations: Generation Y (ages 13 to 31), Generation X (ages 32 to 43), Baby Boomers (ages 44 to 62), and the Silent Generation (ages 63 to 83). The most disconcerting finding in this survey of 3,866 Americans is that only 15% of Americans are optimistic about the future of Social Security; 60% are fearful of the program's long-term viability. More than 2/3 of the survey group believes that the Social Security program needs a “significant overhaul.” Only about 1/3 of the survey group believes the program can be “fixed with some relatively minor changes.”
Now a reality check: Few, if any, of those surveyed have hands-on experience with the nuances and machinations of the Social Security program. The program is too complex and inaccessible for scrutiny. Perceptions about the inevitable insolvency of this program have been shaped by media reports; often these news articles reflect manipulation of public perceptions by foundations, think tanks, associations and private companies interested in overhauling Social Security, with privatization being the nearly universal goal.
As I have written, Social Security critics have done their job, and the onslaught is moving into Round Two with the release of I.O.U.S.A.
