Tuesday, January 18, 2005

BUSH, BLACKS, SS & BS

At that Townhall photo-op, Bush claimed that Blacks were shortchanged by SS because they had a lower life expectancy. This seemed plausible to me but fortunately a commenter at Atrios had a link to the truth, which I share below.

Editorial: Social Security/Blacks get more, not less, from it
January 17, 2005 ED0117
Link

Bush repeated last Tuesday "African-American males die sooner than other males do, which means the [Social Security] system is inherently unfair to a certain group of people. And that needs to be fixed." That is an entirely phony assertion; it has been debunked by the Social Security Administration, by the Government Accountability Office and by other experts. Bush and those around him know that. For them to repeat what they know to be a blatant lie is despicable fear-mongering.

Bush didn't make up this phony line on his own; it comes from the Heritage Foundation, which a number of years ago did a study purporting to show that because African-Americans have a shorter life expectancy than whites, they get less in return for the taxes they pay into the Social Security system.
Heritage failed to factor in the progressivity of Social Security benefits; on a taxes-paid to benefits-received ratio, those with lower incomes get more back. Blacks tend to earn less than whites, and thus their Social Security benefits are larger in comparison to taxes they pay.
Social Security is more than retirement benefits. It also includes survivor and disability benefits. Blacks benefit disproportionately from those programs. While blacks are 11 percent of the workforce, for example, they are 18 percent of those receiving disability benefits. Almost half the blacks receiving Social Security -- 47 percent -- are getting disability benefits or survivor benefits.
The Social Security actuaries found that Heritage had exaggerated substantially the amount blacks pay in Social Security taxes and low-balled the benefits they receive. "In fact," the actuaries said, "results from more careful research reflecting actual work histories for workers by race indicate that the non-white population actually enjoys the same or better expected rates of return from Social Security than for the white population."
The GAO reached the same conclusion. It said that, "In the aggregate, blacks and Hispanics have higher disability rates and lower lifetime earnings, and thus receive greater benefits relative to taxes [paid] than whites."

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