Gingrich's SS plan uses a marginal model and has a universal mandate

1/23/2012

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On Saturday, GOP voters in South Carolina chose former House speaker Newt Gingrich as the best candidate to take on President Barack Obama in the November election contest. 

One area where Gingrich will have difficulty debating the current President will be on an individual mandate for health insurance. Gingrich, like former candidate Hermann Cain, has consistently touted Chile’s Social Security system as the model of choice for replacing our current system. 

However, what the former speaker has so far failed to address is that the system is essentially the Social Security equivalent of Obama’s health care plan. Gingrich told debate viewers that Chile’s system is “totally voluntary,” which, in fact, is totally inaccurate.

According to Jose Pinera, one of the architects of Chile’s pension system, the system mandates that all workers must contribute 10 percent of their income to government approved retirement accounts up to $250 per month. 

Until 2008, only about two-thirds of Chileans were covered under the system. In order to address the massive gap of Chileans not receive retirement pension reforms were introduced that year that now requires the government to cover individuals who failed to contribute or can’t afford to contribute. 

The government also has a “minimum guarantee” and if a retiree falls short of that guarantee the Chilean government will make sure the difference is covered.

In addition, the government heavily regulates the mandated insurance companies. Under those regulations the companies can not participate in any activity other than manage the fund and are required to maintain low risk portfolios.

Much of the architecture of Chile’s Social Security mandate is emulated by both Mitt Romney’s health care plan in Massachusetts and Obama’s national health care reforms.

If the Supreme Court rules the Affordable Health Care Acts mandate as unconstitutional it would be difficult for Gingrich, if elected President, to bring Chile’s Social Security model to the United States.

Rightardia editorial: Democrats need to start using the political F-word

Rightardia listened to most of the last GOP Fox News debate and was surprised when Ron Paul mentioned fascism and the Sinclair Lewis quote. For years Democrats have been called socialists and sometimes worse, and most of us just shrug it off.

Rightardia's comeback when we are called socialist is "that  is what a fascist might say."

The Steve Kangas approach is too ask someone calling a Democrat a socialist to explain what socialism is.

Trust me on the Kanagas view. Most rightards don't have a clue what  socialism is and most confuse it with communism.

The Wikipedia definition of socialism is:

Socialism  /ˈsoʊʃəlɪzəm/ is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. 


Most scholars consider socialism to be an economic system while communism is a political system. Most communist governments like Cuba and North Korea have turned into hereditary dictatorships. China is the exception.

For example is Social Security socialism? Is a retirement system involved in the means of production? Does Social Security manage the economy? Is Social Security a political philosophy advocating public ownership of the means of production. .

Social Security is innocent as charged in all three cases. Social Security is simply a long term national saving plan.The most efficient way to manage it is with the government because it has lower overhead and a higher payout than any options in private enterprise.

Both the UK during the Margaret Thatcher era and Chile during the Augusto Pinochet era tried to privatized their versions of social security and in both cases, the privatization failed.

In the UK example, pensioners lost half of their social security savings during the grand right wing social engineering experiment. Pensioners were advised to return to government programs that were more secure and provided better benefits than private enterprise could offer.

What did Sinclair Lewis say about fascism? His quote is contained in the flag graphic.

Think about that a minute, Isn't patriotism, flag waving, bible thumping, prayer and religion the essence of the GOP? Is there any doubt about the movement of the GOP to the right with the Tea Party and ideologues like Allen West,

Has the GOP has descended into fascism?

Yes, it has.

But have you heard any Democrats call Republicans fascist when they hurled the frequent socialism slurs (s-bombs)? Democrats are too timid to throw back the the political F-word: fascism.

But Ron Paul wasn't. He mentioned fascism in the last debate.

Democrats prefer more politer terminology like "crony capitalism."

Well, crony capitalism is fascism for heaven's sake!

Let's call a spade what is is for once in the Democratic Party.

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