Aging Groups Consider Obama’s Fiscal 2014 Budget Proposal a “Mixed Bag”

Published in Woonsocket Call, April 21, 2013

President Barack Obama, missing the federal mandated budget submission deadline by over two month, finally unveils his fiscal blueprint on April 10, giving Capitol Hill a peek as to how he would fund the nation’s federal agencies, programs and services.

The President proposed a $3.8 trillion budget plan for fiscal 2014, that seeks to slash the huge federal deficit by a net $600 billion over 10 years, raises taxes on the wealthy, and puts the breaks to rising costs of two very popular senior programs, Social Security and Medicare.

Senior groups call President Obama’s the first budget proposal of his second presidential term, a “mixed bag.” His fiscal blueprint would eliminate the draconian cuts of the sequester, that is the arbitrary, across the board cuts Congress imposed this year. However, Obama seeks to reduce the federal deficit by calling for another $200 billion in cuts to discretionary programs – half from defense programs and half from domestic programs.

Braking the Rising Costs of Social Security Despite the Social Security Trustee’s 2012 Annual Report that the entitlement program has the financial resources to pay all benefits through 2033 (see my June 1, 2012 Commentary in Pawtucket Times), Social Security benefits are targeted in the recently released budget plan for substantial cuts by adopting the “chained” consumer price index (CPI) for the purpose of calculating Social Security cost-of-living adjustments, or COLAs.

According to the Washington, D.C.-based, National Committee to Preserve Social Security and Medicare (NCPSSM), the Obama Administration sees this switch as “a technical adjustment.” Aging group warn that using the “chained” CPI will substantially reduce the Social Security benefits of current and future beneficiaries. “If it is adopted, a typical 65 year-old would see an immediate decrease of about $130 per year in Social Security benefits. At age 95, the same senior would face a 9.2 percent reduction—almost $1,400 per year,” notes NCPSSM.

While all beneficiaries will feel the impact of this change, its effect will be greatest on those who draw benefits at earlier ages (e.g., military retirees, disabled veterans and workers) and those who live the longest, says NCPSSM, especially “women who have outlived their other sources of income, have depleted their assets, and rely on Social Security as their only lifeline to financial stability.”.

With Republican Congressional lawmakers generally supportive of Obama’s push to rein in Social Security costs, through the use of the “chained” CPI, liberal Democratic lawmakers, including Rep. David Cicilline, representing Rhode Island’s 2nd Congressional District, strongly oppose the President or any Congressional efforts to cut Social Security to lower the nation’s federal deficit.

Rep. Cicilline calls for reforming the nation’s tax code by ending subsidies for “Big Oil,” along with “making responsible target spending cuts,” to slash the nation’s huge federal deficit .

AARP Poll Says, Keep Your Hands Off Social Security
In a statement, AARP Executive Vice President Nancy A. LeaMond, quickly reacted to the Democratic President’s efforts to use the “chained” CPI to control rising Social Security program costs.

While AARP recognizes the need for the President and Congress to confront budget challenges facing the nation, the nation’s largest aging advocacy group calls for “responsible solutions, not harmful proposals” that would hurt older beneficiaries or threaten the retirement security of the generations that follow, says LeaMond.

LeaMond said, “AARP is deeply dismayed that President Obama would propose cutting the benefits of current and future Social Security recipients, including children, widows, veterans and people with disabilities, to reduce the deficit. Social Security is a self-financed program that doesn’t contribute to the deficit, so it shouldn’t be cut to reduce it.”

AARP’s polls indicated that older Americans, across the political spectrum, agree with nonprofit group’s opposition to the “chained” CPI. LeaMond, notes. The recently released national survey found that “fully 84% of voters age 50 and over oppose cutting Social Security benefits to reduce the deficit.”

“Instead of making harmful cuts to Medicare or shifting additional costs onto beneficiaries, we need to look for savings throughout the health care system, including Medicare,” suggests LeaMond. She says that also “lowering the costs of prescription drugs, innovations that promote better care, reward improved outcomes and make health care programs more efficient and less wasteful have the potential to hold down systemic high health care costs, including costs in Medicare.”

Finally, LeaMond adds, “We know that prescription drugs are one of the key drivers of escalating health care costs, so we appreciate the President’s inclusion of proposals to find savings in lower drug costs. And we applaud his plan to accelerate closure of the ‘donut hole’ in Medicare Part D by 2015, which would reduce seniors’ often burdensome out-of-pocket health care expenses.”

A Snap Shot of Other Aging Budget Issues
Howard Bedlin, Vice President for Public Policy and Advocacy at the National Council on Aging (NCOA), in a written statement calls Obama’s budget proposal a “mixed-bag” when it comes to seniors.”

Bedlin acknowledges that the recently released Obama budget eliminates the sequester cuts to critical programs like Meals on Wheels and other Older Americans Act services, elderly housing, and other vital senior services. “It is unfortunate that cuts are proposed for low-income energy assistance and senior job training and placement programs,” he says.
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According to Bedlin, the President’s budget also protects SNAP (Food Stamps) and Medicaid, in sharp contrast to the drastic cuts approved in the Republican-controlled House budget proposal. “Cuts in Medicaid would be devastating to the millions of vulnerable seniors who rely on the program for long-term care and Medicare low-income protections,” he says.
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Meanwhile, a major concern for NCOA with the President’s budget surrounds Medicare and Social Security. While the organization supports some of the Medicare reductions, the proposed $370 billion in additional cuts are “excessive and several will harm” beneficiaries (more than half having incomes below 200 percent of the poverty line), says Bedlin, these cuts in addition to the $716 billion in Medicare cuts under health reform and significant reductions in spending growth over the past three years.

Also, the proposed new home health co-payment will fall primarily on lower-income older women with multiple chronic health conditions, and lead to premature nursing home placement, predicts Bedlin. “The proposed increase in the Medicare Part B deductible would be especially harmful and unaffordable to millions of seniors with incomes just above the federal poverty line ($958 per month),” he says.

Finally, Bedlin notes that the proposed Medigap surcharge would penalize seniors for decisions made by their doctors, cause major market disruption, and seriously confuse many current policy holders. The proposal to further increase Medicare premiums based on income could result in those with incomes of about $47,000 being forced to pay more.

NCOA joined AARP and NCPSSM and virtually every other national aging organization in opposing the President’s proposal to cut the Social Security Cost of Living Adjustment (COLA) through the use of a “chained” CPI.

A Final Note… With Obama’s proposed budget now thrown in the ring with the House and Senate budgets already drafted and voted on, will Congressional gridlock keep the Democratic President, the GOP-Controlled House and Democratic Senate from working together to hammer out a consensus, bipartisan compromise? Only time will tell if elected lawmakers clearly get the message from the American people, “put the people first and not your political party.”

Herb Weiss, LRI ’12, is a Pawtucket-based freelance writer covering aging, health care and medical issues. He can be reached at hweissri@aol.com.

Retooling America’s Manufacturing Sector

Published in Pawtucket Times, February 15, 2013

Over 50 years ago, you could hear the humming of the machines coming from Rhode Island’s factories.  The piercing sound of factory whistles would rip through the surrounding neighborhood, alerting all that a shift was ending and the next would soon begin.  

Weaving cotton into textiles came from mills scattered throughout northern Rhode Island which translated into work opportunities for all.  Traveling from the City of Providence, the CapitalCity to the City of Pawtucket, the birthplace of the nation’s Industrial Revolution, through Central Falls and up through the City of Woonsocket, you will discover that once we were the hub for the manufacturing of fabric for the nation’s second world war effort. For those factories filling three shifts, meant thousands of workers working in these mills, giving them a place to earn an honorable living. Blue collar workers fueled the nation’s economy as they bought homes, automobiles, as well as providing the  resources to send their children to colleges and universities. “Made in America” was a lifestyle and we were proud of it. 

Today, there is silence in many of these mills and for many of them, a new identity as these same factories have been transformed into artist lofts and studios or renovated for condo living.    For those factories still in operation, many of these manufacturers have decreased the number of shifts, thus reducing their workforce and ultimately impacting many of the local small businesses, leading to closures because of lack of customers.  Simply put, it’s the domino affect and the last piece might fall without Congressional action.   

Manufacturing Goes Over Seas

Over this decade, America’s manufacturing sector has crumbled giving way to China and third world countries to pick up the ball.  Drastically lower wages enable Chinese manufacturers to make cheaper goods sold to consumers for less then it would cost for the items to be made by an American-based manufacturing company. Along with lower wages, Chinese manufacturers face less environmental and safety regulations, taxes and have subsidized operational costs.  Imbalanced trade agreements are not favorable to American manufacturers who are losing the “economic race”, thus resulting in a loss of profits and employee lay offs.  Many of the nation’s manufacturers are being forced out of business, permanently closing their doors in cities and towns throughout this nation.       

A shopping trip always leaves me very unsettled about the flood of cheap imported productions into our nation.  Lower price tags on goods made outside of this country are enticing, but how often is quality been sacrificed for price?  We’ve  become a country of ‘mediocraty’ where its “good enough”.  Imported products ultimately impacts America’s children, who are now less likely to experience the prosperity that their parents once achieved because of the country’s manufacturing economy, which has now begun to falter and tilt to a service economy.     

Shelves of big box stores are packed with electronics and appliances, with most of these items stamped “Made in China.” Your local department store filled with discount bins and clothing racks are certainly not immune from this labeling.  The next time you are shopping, examine the country of origin for that product you are holding.  You guessed it, clothing, dishes, pots and pans, picture frames, all made from Chinese manufacturing companies. 

 Manufacturing Plants Sitting Idle

 As America’s manufacturing sector is decimated by the Chinese along with our communities losing higher paying manufacturing jobs, only lower paying service sector jobs will become available to low and middle income Americans. US Bureau of Labor Statistics 2011 Quarterly Census of Employment and Wages show that the average Rhode Island manufacturing job pays $50,823 annually and that there are currently 40,341 employees directly related to manufacturing. Six years ago, over 52,000 Rhode Islanders worked in the manufacturing sector.

Currently, cities and towns now see manufacturing plants sitting idle and empty or underutilized, often times reducing their tax base. This continued trend will not allow for a balanced economy.  Rhode Island can ill afford to lose its existing manufacturing base, ultimately thousands of people to the state’s unemployment statistics.

 

 Once upon a time, “Made in America” stamped on products gave the buyer an assurance of quality.  Government recalls protected our citizens from products that might harm or kill.  As we are increasingly aware, “Made in China” does not always ensure quality (such as pharmaceuticals, tooth paste and defective tires) because of poor Chinese governmental oversight.  In 2007, newspapers reported that some exported toys “Made in China” were produced with high levels of lead paint, being sent to tens of thousands of toy stores throughout the nation, putting our nation’s children at risk. At this time, even lack of product quality control even allowed poisoned pet food manufactured by Chinese companies to be shipped to America, killing thousands of cats and dogs.   

 Resuscitating the Nation’s Manufacturing Sector

With the kickoff of the 113th Congressional Session last month, it is crucial that the Democratic and Republican politicians thoroughly debate this nation’s trade policies and come up with viable bipartisan solutions to reenergizing America’s manufacturing sector.

Most importantly, what steps will President Barrack H. Obama working with a divided Congress take to ensure that American well-paying jobs do not vanish in the global economy?   On Tuesday evening, the President, addressing a joint session of Congress, gave us some clues in his State of the Union speech about retooling America’s manufacturing sector. 

Although the President touched on immigration reform and border security, early child education, clean energy technologies, the war in Afghanistan, and confronting gun violence, he called for fixing the nation’s aging infrastructure, along with launching manufacturing hubs, where businesses partner with the Department of Defense and Energy, to create high tech-jobs.  He looked to Congress to create a network of 15 of these hubs to “guarantee that the next revolution in manufacturing is “Made in America.”   If Congress blocks this economic initiative the defiant President plans to use executive orders to create three hubs on his own.

Meanwhile, redesigning the nation’s high schools to enable graduates to meet the demands of a high-tech economy can only help manufacturing companies, the noted President Obama.  Schools would be rewarded to develop partnerships with colleges and employers to create classes that teach science, technology, engineering and math skills needed by the nation’s manufacturing sector, he said.

In the Ocean State, as part of his ongoing work to jump start Rhode Island’s economy back, U.S. Rep. David N. Cicilline (D-RI)  at North East Knitting Company in Pawtucket, unveiled another version of his Make It In America Manufacturing Act to target federal investment in manufacturing, helping create jobs, generate public-private partnerships, and support small business growth. (This legislative proposal is similar to one that he introduced two years ago.)

“When they’re competing on a level playing field, American workers outperform competitors across the world,” said Cicilline. Noting that Rhode Island’s economy was built on the strength of its manufacturing industry, the Congressman who represents the 1st Congressional District, tapping into feedback from his Ocean State constituents and the Brookings Institution, crafted the legislative proposal to give manufacturer the resources needed to compete successfully, grow jobs, and get the state and national economy moving again.

Senator Kirsten Gillibrand (D-NY), has introduced the companion measure in the Senate.  If signed into law, Cicilline’s Make It In America Manufacturing Act would create a competitive incentive grant program, jointly administered through the Departments of Labor and Commerce. States or regional partnerships may apply for the program, and successful applicants will receive grant funds to help implement innovative Manufacturing Enhancement Strategies. 

Meanwhile, funds can be used to create a revolving loan fund, to issue low interest loans to manufacturers, or to provide grants to non-profits, including community colleges, helping manufacturers to address the skills gap that hinders growth in the manufacturing sector.  The loan funds could also be used to increase exports and domestic supply chain opportunities, improve energy efficiency.  Also, the loans could be used to retool and expand existing manufacturing facilities to compete in the 21st century economy.

Seeking a Bipartisan Compromise

The clocks cannot be turned back.  The global economy is here to stay.  Clearly, Congressional gridlock must end by federal lawmakers seeking legislative solutions to making the nation’s manufacturing sector more competitive in a global economy.  Democratic and GOP lawmakers must hammer out bipartisan solutions to enable the nation’s manufacturing companies to fairly compete worldwide and to ensure that trade polices are balanced and fair for all.  

Many of President Obama’s repackaged proposals (reintroduced in his hour long State of the Union speech) and even Cicilline’s manufacturing proposal were derailed in the last Congress in a Republican-controlled House, where GOP Tea Party members practiced anti-compromise politics.  It becomes crucial for the President’s legislative agenda along with Cicilline’s Make It In America Manufacturing Act, to not be bottled up in the House but truly debated.

With the dust settling from November’s elections, the America public has sent both the President and Congress a strong, clear message that is: work together to fix the nation’s sagging economy. Do the people’s work and leave your political bickering outside the House and Senate Chambers.  Compromise and keep manufacturing in America.

Herb Weiss, LRI ’12, is a freelance writer covering aging, health care and medical, even business issues. He can be reached at hweissri@aol.com

 

           

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Cultual Icons, Celebrities Give Us Cause to Reflect on Our Lives

Published September 7, 2012, Pawtucket Times 

             The death of those celebrities and cultural icons who were familiar to us growing up give us cause to reflect on their lives – and our own, as well as ones’ contributions to society.

             Astronaut Neil Armstrong traveled 250,000 miles from earth to the lunar surface and was the first man to walk on the moon.  At the age of 82, he died last month in Cincinnati, Ohio from complications resulted from cardiovascular procedures.

            With his death on August 25, 2012, hundreds of tributes would come in from all over the world, from world leaders, former astronauts and his family, calling him modest and humble, a “reluctant American hero,” an explorer –  an exceptional test pilot, recognized as a war veteran who flew 78 combat missions during the Korean conflict.

            Not unexpectedly, even President Barack Obama, American’s Commander-in-Chief, recognized Armstrong’s impact on the cultural fabric of the nation.  “When he and his fellow crew members lifted off aboard Apollo 11 in 1969, they carried with them the aspirations of an entire nation,” said Obama in a written statement released by the White House. “They set out to show the world that the American spirit can see beyond what seems unimaginable – that with enough drive and ingenuity, anything is possible. And when Neil stepped foot on the surface of the moon for the first time, he delivered a moment of human achievement that will never be forgotten.”

 Man on the Moon

          In July 1969, one month after my 15th birthday, as a young man, I was riveted to our television as my family watched the CBS news with Walter Cronkite, as he told a captivated nation that American astronaut Neil Armstrong and  lunar module pilot Buzz Aldrin, along with command module pilot Mike Collins, had reached the moon four days after being launched from Kennedy Space Center. Cronkite, America’s most trusted newscaster, detailed the landing, noting how the lunar module “Eagle” separated from the command module, making its descent to the moon surface.

           When making that lunar contact, the 38-year-old Armstrong would say, “Tranquility Base here, the Eagle has landed.”  No aging baby boomer would ever forget the memorable quote of the young commander of Apollo 11 as he climbed down Eagle’s ladder and stepped on to the lunar soil on July 20, 1969 at 10:56 p.m…  “That’s one small step for [a] man, one giant leap for mankind.”

         According to NASA, Armstrong would prance around on the lunar surface for two hours and 32 minutes, while Aldrin, who followed him, spent about 15 minutes less than that.

         For years, a small framed replica of the front page of the Dallas Morning News featuring Armstrong’s voyage sat on my old dresser, which served as an inspirational reminder – a  piece of history I witnessed,  now recorded into the nation’s history books.

 Long-time Comedienne Passes Away

          Phyllis Diller, a high-profile stand-up Comedienne who during a 50 year career served as a role model to younger females (including Roseanne Barr, Ellen De Generes, Whoopi Goldberg, and Joan Rivers among others) trying to make a career out of telling jokes, died on August 20, 2012 at the age of 95.    She was one of the first women to break into this male-dominated standup comedian profession, even giving them a run for their money.

       Over her long career, she made dozens of movies, appeared in specials, situational comedy shows on television, recorded comedy LP records and even performed on Broadway, as well as breathing life into animated characters on films and television shows with voice-overs.   

       Keeping my mother company on the couch by watching Johnny Carson after the late night news, as a young child I would lay my head on her lap, watching The Tonight Show “Starring Johnny Carson” in the early 1960s.  Diller appeared on this show, as well as variety shows, hosted by Jack Benny, Dean Martin, Red Skeleton, and Ed Sullivan.  She captivated the nation with her quirky sense of humor and signature laugh.

       As I grew up watching Diller on television I can remember the self-deprecating professional jokester wearing an unkempt wig, wrist-length gloves, and cloth-covered ankle boots, carrying a long fake jeweled cigarette holder (even though she never smoked) and taking lob sharp barbs at her fictional husband, Fang, and her home life during her routines.  She was confident and proud of her place in the world, despite the trials and tribulations of “family life”.

       At age 37, Diller, a mother and homemaker, got her first break in 1955, playing San Francisco’s Purple Onion nightclub.  The two week engagement ultimately ended a year and half later.

       Diller, a longtime resident of the Brentwood area of Los Angeles, California, appeared regularly as a special guest on many television programs throughout her career, including What’s My Line? mystery guests.  She also made cameo appearances bringing her unique humor to Rowan and Martin’s Laugh-In, Love Boat, Chips, Love American Style, the Drew Carey Show and even appeared on ABC’s Boston Legal.

       Diller, who underwent 15 different plastic surgeries during her life (this noted in her 2005 autobiography), surprisingly was also recognized as an accomplished pianist as well as a painter.

       Archie Bunkers chair went to the Smithsonian.  So did Diller’s jokes, so to speak.  Even the Albert H. Small Documents Gallery at the National Museum of American History, from August 12 to October 28, 2011, displayed Diller’s gag file, a steel cabinet consisting of 48 file drawers holding over 50,000 jokes penned on index cards and costumes that became part of her “comedic persona.”

 The Passing of Cultural Icons and Celebrities

        When we are young, we feel invulnerable and that we will live forever. Unrealistically, we see death as no match for us. In our later year’s as aging baby boomers, we begin to see death close up, through the passing of our older parents, siblings, co-workers, friends and sometimes even our children.  Health conditions continually remind us of our impending mortality. 

        As we look at the passing of Neil Armstrong and Phyllis Diller, their impressive life stories should give us confirmation of their major impact on our culture. Their passing become “mortality markers” subtly giving us the gentle message that “generations come and go” and that we, like them, will not live forever.  Time becomes the most valuable commodity that we carry throughout our lives.

          If we use time wisely, we can better use our remaining days to make a positive difference in our community, whether it be through the professions we chose or simply our outlook on life to those around us.    Armstrong, to take mankind to where it has never has been –  Diller to make us laugh to forget the pains of life.

         Herb Weiss is a Pawtucket-based freelance writer who covers aging, health care and medical issues.  He can be reached at hweissri@aol.com.
Additional information about Armstrong is available on the Web at: