What should the U.S. do about the so-called "fiscal cliff"? Who better to ask than Goldman Sachs CEO Lloyd Blankfein, "one of the world's most influential bankers"?
Lloyd Blankfein (photo: Stuart Isett)
That's what CBS Evening News must have been thinking, anyway, when they did a segment last night (11/19/12) all about Blankfein's opinions. CBS's Scott Pelley began: "When we asked Blankfein how to reduce the federal budget deficit, he went straight for the subject that politicians don't want to talk about."
BLANKFEIN: You're going to have to undoubtedly do something to lower people's expectations. The entitlements, and what people think that they're going to get, because it's not going to–they're not going to get it.
PELLEY: Social Security, Medicare, Medicaid?
BLANKFEIN: Some things.
It's maddening, isn't it, when someone who obviously knows exactly what needs to be done insists on being so coy about it? Luckily, Blankfein did offer some specifics on one of those things that we think we're going to get, and aren't:
And you can go back and you can look at the history of these things, and Social Security wasn't devised to be a system that supported you for a 30-year retirement after a 25-year career. So there will be certain things that the retirement age has to be changed, maybe some of the benefits have to be affected, maybe some of the inflation adjustments have to be revised.
Huh. So Blankfein–who was paid $16 million last year, and owns $210 million worth of his company's stock–thinks that people can retire on Social Security after working for 25 years? As Gene Lyons pointed out, that would mean that people are getting their first paychecks when they're 42–or, assuming they're willing to take the severe benefit cuts that come with early retirement, at 37. Or possibly he mistakenly believes Social Security allows you to retire at 41.
He also thinks people typically live to be 92 or 97, depending. In real life, of course, most people start working as early as 16, so they reach retirement age after 51 years of labor, when they have a life expectancy of 17 years–or 14 years if they're an African-American man.
On the basis of this peculiar understanding of U.S. society–which, strangely, doesn't seem to trouble Pelley at all–Blankfein has some news for us:
BLANKFEIN: But in general, entitlements have to be slowed down and contained.
PELLEY: Because we can't afford them going forward?
BLANKFEIN: Because we can't afford them.
You often hear this "we can't afford them" line, sometimes from people who aren't multimillionaires. For the record, in 1937, when Social Security Act was first implemented, the per capita GDP of the U.S. was than $7,971. In 1965, when Medicare was created, it was $18,575. Today it's $42,671. (All figures in 2005 dollars.)
It's hard to figure out how we could afford to take care of our old people in 1937 and 1965, when our country was one–quarter or one–half as wealthy as it is today, but can't afford to do so today. Unless it has something to do with the fact that in 1937 and 1965–people like Lloyd Blankfein didn't make $16 million a year.
Correction: This post originally mixed up the year when the Social Security Act was passed, 1935, with the year it was implemented.
About Jim Naureckas
http://www.fair.org/blog/2012/11/20/you-think-youre-getting-social-security-but-youre-not-says-multimillionaire-banker/
Michael e,
I wander if you ever look around this ( in your words blessed) country without the blinders, with open eyes, if you ever read the basic facts about our country? Have you dissected/evaluated our population economically and looked at the most salient facts that are hitting you from all around? Are you aware that our income is slipping down (when adjusted for inflation) since 1972-73? It is not only correlated, using advanced statistical method called ‘regressions,’ you can find out that the exodus of jobs, especially the manufacturing jobs, has been one of the most significant factors in our National Median d income drop. I am talking about the median wage, not the Average wage which is highly skewed, unrealistic, and inflated because of the millionaires, and billionaire’s incomes. In 1973, the absolute difference between the top income, and the minimum wage was 189 times, last year, it was calculated at being 400 times. Does this fact bother you, concern you, you flag waver, the patriot who cares about our country? Do you think that these guys who make 400 times more than those on the bottom are 400 times smarter than those on the bottom? Does the fact that we have 5,000,000 homeless Americans, 65,000,000 American without ANY health insurance, that out infra structure requires 16,000,000,000,000 U.S. dollars to repair, or bring up to safety our roads, sewage system rail-roads, and hundreds of dams used for generating electricity, or damming the rivers, and so on, and so on? Do you (in plain English) give a ‘fork’ about all of these things, or are you some lunatic believing that all one has to do sing our National Anthem, wave the flag, and all will be all right? Next time you come to this forum, please either come with some facts, not from the filthy, sick, mouth of Rush Limbaugh, or Dear Abby, or from the Reader’s Digest, or instead of preaching some sick propaganda from the misanthropic Libertarians, you come here to ask questions about our country, yes, still beautiful country notwithstanding.
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Marc not sure what you are on about.
Bozidor Im wondering how happy you are in a country you despise?I have no problem with you feeling God is a joke,and this country an abomination, and stain upon the face of good honest people.I just cant for the life of me understand why it is you stay unless, it is for lack of funds to go elsewhere.Maybe that is a government subsidized program that would be a good investment for us all.Worth a tax hike.A one way ticket to anywhere in the world for people who hate this country.Its values and its histories.Get rid of some of the cancer as it were.Im educated in the human body.Every day from the moment of conception we are on a path to death.Yet my education shows me the wonder of it all.You are educated in the body politic.You seem full of hatred.What beauty have you found sir?
Michael e,
I am astonished that any time somebody starts pointing the wrongs of the U.S. economic/political system’s faults, aberrations, abuses, and crimes, that person is advised to leave the country, ‘leave the beautiful system alone.’ What is wrong trying to correct the wrongs? When Rockefeller in 1909 ordered the National Guard to machine gun down the striking workers in his mines in Ludlow Colorado, nobody suggested that he leaves the country. When we wage illegal wars, as we do, who do the people tell to leave the country? When the corporation closes the plant in the U.S., moves the machinery to China, and turns around and sells the same products back in the U.S. where they laid off thousands of American workers, who is advised to move out? Are we not free to demand changes of the wrongs, illegal, and detrimental things done to us just to maximize the profits of the corporations? I can name a number of things I like, if that is what you want to write about you are free, but do not tell me what to do if I strongly object to the wrongs being done. There are two kinds of criminals; one who commits the crime, and the other who deliberately looks the other way that is called a crime of omission. You look the other way; you are guilty of protecting the criminal.
I do not see here you mention Madoff who swindled $45,000,000,000, you do not mention the tobacco industry that kills every years 150,000 people in the U.S legally, nor do you see anything wrong the way our government protect the corporate criminals, because our politicians are nothing but the best paid prostitutes working for the vested interests of the corporations, and alike. Why don’t you leave the country, move to some more capitalist colony of the U, S. and experience the bliss of it? What makes you think that I have no funds to move elsewhere? Why are you hiding under a made up name, I use my real name, and state where I live, what I did for living, can you do the same?
Michael E
I knew it…Jesus Hates you LOL!!
My Friend Michael e,
Let me share something with you; my very first book I ever read was, Uncle Tom’s Cabin by Harriet Bircher Stove. That book described this slave called Tom, who was born in slavery, worked all his life as a slave, and never saw anything wrong with the slavery system, and he even praised his slave master. You remind me of him, I felt sorry for Tom, and I feel SORRIER for you. The space here is just too LIMITED to be able to fully explain to you precisely why we all live in a slavery system, and very few of us ever escape from it. If you wish to find out how to get free from being a slave, you MUST READ this book I mentioned several times; Give Me Liberty, by Gerry Spence.
I am free (in my mind only) for we have not liberated the system, for the slave master is invisible, the slave master is all over the world, where ever we have a system of exploitation where the worker is virtually NEVER given his fair share of the value he/she put in the product.
I am currently doing a serious research on this topic (that I plan to publish when finished), more precisely, how to integrate Immanuel Kant’s Categorical Imperative, The Basic Human Rights, and the correct answer (to which I still have no answer) being,,,What is a Fair Wage For Any Human Activity Called Work. Perhaps you can give me some help, who knows, maybe some of your slogans from the John Birch Society. So, here is your chance to show that you can actually think, not just spit out some worn-out, ridicules slogans coined by the discredited far Right aberrant, and malcontent narrow minded ‘patriots.’ Please help me Michael e, I need your kind of a Patriot to show me that my judgment of you personally was in error.
Let's take this gut's money first. Then, let's take the money of those who agree with his outlook. That could help improve the so-called entitlements.
For starters. I am 63. Don't tell me you want to raise Medicare to 68.
Don't want to hear it.
Joe Fulghum
Let us first look at the budget where the money comes from INTO this budget. Second, where is the money spent? I would cut the welfare for the already wealthy corporations first, that is between 250 billion, and 400 billion, second, I would end the wars in those countries where we are waging perpetual wars against the so called terrorists, third, I would close 500-600 military bases, forth, I would change our tax system that the corporations would pay the rate they paid in the 1950’s 1960’s. The next would be taxing the Social security tax on ALL earned income, millionaires as well. Following would be a progressive income tax on ALL income as we had in the 1960’s.
To increase our flow of the money INTO the government (bottomless coffers), I would initiate a big infra structure projects employing millions of our unemployed Americans (not sending any more jobs to China), this would increase the tax collection from those working, and rebuild the country’s badly needed many bridges, rail-ways, dams, roads, make housing for 5,000,000 homeless, treble the investment in the renewable energy that would create close to million jobs. I would implement a Universal Health Insurance for ALL Americans. Here you have $2,000,000,000,000 in savings. No need to touch the Medicare at all. We can do it all, yes, we can. But, there is only one obstacle to accomplish all this; the capitalist system.
Bozidor…We are all slaves????Nonsense.Or we are to ignorant to know we are all slaves?More nonsense.I might say we a nation of the worlds outcasts who have risen high above all.Not because the people were exceptional;.Our founding was exceptional.And I am not telling everyone that thinks there are wrongs within the umbrella of our constitution to lesson their efforts in making things better.Go to it.I am saying if you do not believe in our constitution, and our capitalist system then you probably should go else where.There are marxist countries.Socialist.Monarchies and so on.Its a big world,Even Obama feigns to believe in the core values of this nation.If your only goal is a new system of government then really why stay?If you on the other hand can go on for hours and days ,and years about the exceptionalism of this country than i apologize.You seem to me more comfortable going the other way.As far as slavery- we purged that from our souls during the civil war.Bathed in blood we among all nations paid the ultimate price for a world gone mad.We have had a secretary of state,head of the joint chiefs and president that are black.Uncle Toms cabin is a sad memory.Let it lay.As far as using my real name…….You sir may be preaching to the choir here.I am not.Put an Obama sticker on your car people who understand things may think you a fool but thats about it.Put a Romni sticker ….and your car gets destroyed.On this sight alone I have had some pretty threatening things said by some real "winners".Best thing I ever did is use the pen name derived from the old commercial "Mikey likes it".I worked on Clintons campaign….. and for him.I was always sickened by the level of animosity on that side of the coin.Being on both sides of that coin now I can tell you the difference is amazing.
Michael e, I do not have to leave, and I will not leave, in spite of your suggestions. I am an American; This land is my land, this land is your land, from California, to the New York island…as the song goes. And I do not have to change my attitude, nor my philosophy because of people like you, and others. So you can stop giving me the dirrections.
You still did not reveal who you are really, nor where you live, or what you do, other than being a mouth piece for the far-right biggots. You will never read the book I suggested, so you are still a slave, you just can not see it. Read the book GIVE ME LIBERTY.
Bozidar Are you talking about the wolf book?
You say you are an American.Well technically that may be true.Im questioning that part of you that has a strong Anarchist streak, and simply asking the question "why…. are you still an American"?Has your education armed you to be a community activist that attacks ,and demeans America as she has stood ,and does stand?Or is it more insidious…. do you hope for an overthrow of our way of government, (and boy would I like you to articulate the"better way" you envision)?Yes what has your education at the hands of our halls of greater learning shown you is the best form of government? I smell a rat here(I could of course be wrong).I see you as the guy at 4th of july party who stands up among the kids who just rode their decorated bikes in a parade to tell them about government chemical tests on people in the 50s.Bellyaching does not take a great education….just enough.Do you believe in the constitution of the United States?
oh and as far as telling anyone on this blog my name, address,ss# whatever…..Just read some of Tees stuff.You have not been here long partner.Believe me there are a bunch of folks here who aren't packing a full load.And if our own president can hide damn near everything about his life ,why not me :)????I still think he should release his school transcripts ,take trumps 5 million,and help a lot of people in his old chicago district.Bedamned his pride.This country is going down by the stern.We NEED a president that helps to earn every penny
Michael e,
Have you read the Declaration of Independence of the United States? Revisit it. You owe it to yourself so that you do not keep trying to abridge my right to free speech.
Declaration of Independence
In Congress, July 4, 1776
The Unanimous Declaration of the Thirteen United States of America.
When, in the course of human events, it becomes necessary for one people to dissolve the political bonds which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers form the consent of the governed. That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness.
You have read it, have you? Just ask yourself, ‘what do those words mean?’
My convictions that it is irrational to allow one small group of people to be able to impoverish the majority is not only unfair, it goes against the very Declaration of Independence as you can read here. The corporations run this country; our government is in their hands, not the other way around. To be legally permitted, and supported in moving the jobs out of the country, to allow these blood thirty corporation to exploit and manipulate the people, to destroy not just our environment, but the environment of the entire world, is inhuman, irrational, and we must curb this evil power using the legal documents like the Declaration of Independence. I see millions of homeless, and unemployed, people losing homes, our homeless veterans begging and sleeping in the parks. The Census of 2010 recorded that more than 50% of our American OWED more than they OWNED, and we already know that our government is in a heavy DEBT, so where did the money go? Is it fair that the difference in income can be as much as 400 times between the top, and the bottom? I guess, it is ok with you. You suggest I go sight seeing and wave and salute the flag to remedy the situation, or did I miss something? You do your part, and I will do my, I fight injustice, you call it other names. It is your prerogative, you have the right to think as much as I.
Michael e………so, you smell a rat? Really? What you are smelling is your own bullshite?
I have been following your replies to Bozidar, and I have come to a conclusion. Bozidar is well informed and wicked smart. Why you little man…..are an asshat.
Oh, by the way, your koolaid mustach is showing.
Sidney,
First off, thank you for your sane (albeit little too harsh) assessment of Michael. In psychology, Michael’s type is defined/classified as a typical first generation immigrant personality. He suffers from a fear of being accused/labeled as being less than patriotic. To compensate this feeling of insecurity, he feels that he must exhibit much higher patriotism than his peer group. As I help people with alcohol/drug addiction, (pro-bono) I occasionally encounter his type, and I have to walk a thin line in order to help the veteran who suffers. I love America, but instead of blindly ignoring everything that is absolutely wrong, inhuman, counter-productive, I become an activist and try do help my country. I have our U.S.A. official flag; the Marines Corps gave it to me when my son was buried. The flag given to me at the grave site, I refused to accept, it was made in China, so they took some time to send me another flag, U.S. made.
Everything I post here, and in my other articles/comments I contribute, I signed using my original christened name. I have no intention to hide, nor pretend to be anybody else other than who I am, or what I am. I posted even my email address, and where I live, just in case that some people like Michael can accuse me of writing from another country, and because of that, being ‘anti-American.’ Trying to correct what is wrong is not being against the country, it IS our DUTY. A country is made of two entities; the physical, and its people. Not taking care of either of these entities, we lose our country. The flag waving, and shouting our National Anthem never corrected the wrongs, it masked them, it obfuscated the problem, and prevented the needed corrections. That is Michael’s role, NOT MINE. I have seldom used this metaphor/paradigm to describe when I will change my attitude toward solving problems, it goes like this; I will change when a certain part of my anatomy grows a finger nail.’ And I check this part every morning, the first thing. So Michael, I am not hopeless, my part may just grow one finger nail, who knows, miracles happen every day. Be patient, I am.
Bozidar You obviously have nothing to be ashamed of but you are far too easy on Michael e. This thread was about the sociopathatic finance capitalist blankfein, his comments, and why they are given too much weight by a biased, corrupt, out-for-sale 4th estate. His responses are the common right wing reactionary attempt to change the subject through personal attack, by bringing in God, Flags, Patriotism etc., etc.,,,
Marc,
I felt neither ashamed, nor apologetic to Michaels red baiting, his patronizing, and offensive instructions to “Love it, or leave it” repartees. I went once to the John Birch Society Conference in San Diego Cal, in the late 60’s. Flags all over, bombastic inflammatory, racist speeches, so far to the Right, that would make Ronald Reagan appear as a communist. Michael reminds me of those guys from that conference. I was an uninvited guest, sneaked in. I try hard to crack his shield, open a small crack in his mind to make him aware that our entire system that negates the Basic Human Rights is inhuman, that it serves only those sick in pursuit of ever more, more profits, money. I DO feel sorry for him, and all those like him. I am basically a humanist, and proud for being one. I just wish that he would read just a few pages from the book Give Me Liberty by Gerry Spence, just 10 pages, and he may see where I am coming from. I actually tend to like guys who have such strong convictions, but mistaken notwithstanding all other facts. These people become very fierce fighters for the Basic Human Rights, once they see WHO/WHAT the ENEMY IS. I recall the James Bond movie Moonraker when Jaws turns against his master. He is like that brute Jaws, man- eating, unable to reason, and actually believing that what he is thinking, doing, is PATRIOTIC. I have read our Constitution at least 50 times, and never could find in a single sentence, the magic word that Michael defends with such passion; “CAPITALISM.” It just is not there.
Bozidar i belive i react with extrreme frustration when encountering comments like Michael e. because its depressing that so many have bought into thier own destruction..the blackfeins of the world like to sell "liberty" and "individual responsibility" etc., but they operate ruthlessly as a class in thier own self interests, which are, as you know, completely antithetical to mine, yours, and michael e's
Marc,
In my last year of grad Scholl for pol science, I did as my final work a study of the strength in the Protestant Work Ethic (American Dream). One of the pearls of that study was a discovery of the fairly novel psychological defense mechanism called a COGNITIVE DISSONANCE. Basically, this is the ability of our mind to accept two, or more diametrically opposite ideas, but on a CONSCIOUS level. Seeing a black wall and being able to accept that the black wall is both black, and white. This creates perpetual anxiety, and various illogical (irrational) behaviors in those who suffer from it. Since I am not seeing Michael on a professional basis, I can describe a hypothetical example like “Michael.” Michael is an example, he is not rich, but he is expressing beliefs that he is in the rich class, that he has to defend that class and its modus operandi. He repeatedly, deliberately ignored my suggestion to evaluate his position, and our economic system, distribution of wealth, difference in wages, It is too threatening for guys like Michael to rationally examine the capitalist society, to locate their position on the ladder of income, wealth, education, and compare it to the real upper middle class whose ideals he is vehemently promoting, and identifying with. He most definitely needs counseling, one day, just like in the cases of amnesia, the realization of the real self comes like a thunder, suddenly guys like Michael realize that they had been duped, cheated, that their standing on the ladder of wealth is far below from the position they were imagining. When illusions get so strong, and become delusions, we call those people (in mild terms) slightly paranoid, or just unrealistically maladjusted in their behavior. The belief in the American Dream is inversely proportional with age, the older the person, the less belief in the Dream, the younger, the stronger. There comes the time when the person retires, and takes the inventory of all his possessions. He looks back, and calculates how many years he/she had worked hard, and for what? And if he looks around, he will come to terms with his real accomplishments, and absolute reality, what ever it may be. A heavy depression sets in, and these highly depressed guys are prone to all kinds of health problems, far more than those who did not believe in the Dream. You see why I feel sorry for him, in spite of how he tried to make me feel ashamed, or guilty. I understand him, and his plight.
Bozidar…Enough with the humor from you and your 'friends" here who run together like lemming over the cliff.Im glad you have a cheering fan base.(Not a good thing on this sight believe me.)You sound like an over educated fool.I have been in politics for over 30 years in one sense or another.You are what my old boss Bill Clinton called Obama….an amature. Spouting academia lunch room nonsense.Stop trying to psycho analyze people(me)or decide on what pathology pains them.Your out of your field.And your idea of who I am is as far off as if your were to say Im a 6 foot 5 professional baseball player.Guess again genius.Wrong on almost all counts.So lets stop the long winded blather.Just answer one simple question.DO YOU BELIEVE IN THE CONSTITUTION OF THE UNITED STTES?
By the way I do not believe in "class".Not in this country.If you did your schoolwork on the work ethic you would realize this country has few manor born people.Great example.A good friend is an amazing surgeon.Her father and mother came here with $125 in their pockets.They spoke no English,and her father never went above the 7th grade.Her mother the 9th.She grew up in a simple twin.All working fingers to the bone to put the kids through school.No govt aid to speak of, and all loans repaid.Old school.Her brother is one of this countries esteemed lawyers.Her little sister is an orthodontist.She(my friend) is not just a fantastic Dr- she is an amazing business woman.She owns 3 italian restaurants that are the pearls of the cities they reside in.she hopes to run for the Senate soon.Is she the a member of "that class"?Am I?Everyone i know who is rich as you call it -worked for it.I still work 14 hour days 6 days a week.And really am on call round the clock.So we are the privileged few?The pampered elite?No lords and ladies here sir.Just hard working balls to the walls people living the American dream.While simpletons try to articulate how wrong we are for succeeding beyond our wildest dreams in this blessed country.
Michael e,
I said that I like to see people express themselves as passionately, as you do. We ALL have this right to free speech, you and me included. I have the right to assess the psychopath banker, whom I diagnose mentally far off from the NORM, afflicted severely with greed, and believing that financial banker’s group has this ‘sacred’ right to make the laws to rip-off the rest of us. And yes, any time I encounter somebody as that banker, or you, I can not help but feel that both of you need help. Knowledge is an eye opener, there are many books, studies, and facts all around you that can illuminate, alter, possibly change your illusions of our class system, heavily tilted to the benefits of the already wealthy, and privileged class. Just because you refuse to see the reality, does not make me wrong. Actually, your ‘red baiting’ your old clishes and form the far to the right slogans are typical responses of the typical first generation immigrant, or, somebody who believes that he/she ‘made it’ because they have a small home with mortgage, a used car, and a television. If you REALLY wish to participate in the debate about our, or any other country’s economy, the least you can do is READ the relevant books, scholarly economic reports, visit the statistical abstracts, see the trend line (economic), learn how to read those technical statistical terms, like significance level, regressions, probabilities, correlations, and few other terms. Take a course in sociology in the local junior college, or read for example the INJURY TO INSULT by Verba and Schlosen. The whole book is about the AMERICAN DREAM, unemployment, various statistics about the actual wealth distributions, and other measurement of the economic system. There is also the complete questionnaire used by these two scholars to evaluate our ENTIRE COUNTRY, not just few of their friends that ‘made it.’ This book is few years old, but when adjusted for inflation, more than accurate to make a realistic picture of our country’s situation. It has all the facts footnoted, identified, and verifiable. Their conclusions and interpretations are ALL BASED ON THE FACTS, not opinions as yours. This is not mocking you, with my education, and my professional experience, I am actually trying to help you open your eyes, and if you pardon my expression, HELP YOU. I help people, this IS, what I do. You are one of those who seem to need help. My advice for you and others like you is absolutely free. We could even become friends, you are not my patient, we are here only debating about some greedy, mentally off bankster, and what we feel about his ‘professional’ convictions. Now, start the hunt for knowledge, before you throw another insult my way.