In the wake of the compromise that came out of the 1982-83 Greenspan Commission Cato organized a conference of the enemies of Social Security in June and then published the papers in the Fall 1983 issue of the Cato Journal under the title Social Security: Continuing Crisis or Real Reform. The broad conclusion of the participants was that 'reform' meant 'privatization' on the model of the Ferrara Plan. But how to get there given the popularity of a program that had become known as the 'Third Rail of American Politics'? Well the game plan was laid in a paper which actually had a truncated version of the title of this post. Instead authors Stuart Butler and Peter Germanis just pithily called it Achieving a 'Leninist' Strategy and laid out a battle plan that the Right has followed to the letter ever since. Pretty much to the point that you could cut and paste any Republican speech on Social Security from it. Ever wonder why so many younger workers think Social Security just won't be there for them? Why every Republican plan ever proposed would exempt those in or approaching retirement from benefit cuts? And why all the blame has come to be heaped on Simpson's 'Greedy Geezers' aka as 'Selfish Boomers?
Well it is because Butler and Germanis may have been the most successful marketing plan in history, particularly in selling their product to Gen-X. They may be evil bastards but you have to take your hat off when evaluating them as strategists. They were and are good at what they do. What follows in Extended are fairly lengthy extracts, but you have to read the whole thing to get the full flavor.
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 ensimre 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.
Key phrases: 'focused political coalition' and 'isolating and weakening its opponents.
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.
Key words and phrases: 'fiasco' (meaning the 1983 compromise) and 'divide the coalition and cast doubt'.
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.
Speaks for itself.
Calming Existing Beneficiaries
The sine qua non of any successful Social Security reform strategy must he an assurance to those already retired or nearing retirement that their benefits will he paid in full
. Reassure seniors.
A comprehensive program of economic education must confront people with the facts about Social Security and the problems it faces. The many myths surrounding the system must be dispelled, especially the popular belief that Social Security is an “Insurance” program financed by “contributions” that provide an “earned annuity.” That many have come to rely on Social Security as their major or sole means of support, not realizing that it was originally intended only to supplement other sources of retirement income, is apparent from a reading of the popular press. Over the years, the program has become surrounded by a cloak ofdemagoguery and misinformation, woven by political leaden and interest groups seeking to further their own ends.
"Mr. Kettle! Mr. Pot is on the other line"
The second main element in our reform strategy involves what one might crudely call guerrilla war fare against both the current Social Security system and the coalition that supports it.
Well can't disagree there, can you spell 'disinformation'?
Interest groups concerned with Social Security reform can be divided
into the young, the middle-aged working population, and the retired or those nearing retirement. Of these, the young are the most obvious constituency for reform and a natural ally for the private alternative.
The overwhelming majority of people in this group have stated repeatedly that they have little or no confidence in the present Social Security system.
PUMP IT UP! (To hell with the actual numbers)
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 befire 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.
Anyone who thought that rolling these folk in 2005 permanently removed the risk going forward needs to read and re-read that last paragraph. And the whole paper for that matter. The plan is laid out in back and white.