In the wake of somewhat of an uproar from progressives, Democrats and even some Republican leaders, President George W. Bush is now backing away from saying that Social Security faces a “crisis.” He has toned down the rhetoric and now refers to a slightly less ominous significant “problem” when he refers to the system that keeps millions of elderly Americans out of poverty.

Let’s get some perspective: Many economists, notably those at the Center on Economic and Policy Research and the Congressional Budget Office, have made it clear that Social Security will remain sound, at least until 2052. Even after that date, the program will still be able to pay out benefits at least equivalent, even adjusted for inflation, to those being distributed today. Indefinitely. With no change whatsoever. The reality is that Social Security is the most financially sound today than it has been since its conception 70 years ago.

Nor will the Baby Boomers’ retirement bankrupt Social Security. First, most Baby Boomers will expire themselves before Social Security shows any signs of instability and second, Social Security cannot become “bankrupt.” Social Security currently has a surplus of $150 billion held in bonds backed by the full faith and credit of the United States government. Only in the case of the US defaulting on its bonds, would the program be “bankrupt.” Not only is this scenario implausible, but the U.S. has never defaulted on its bonds, no one is suggesting that it will, and a world-wide financial crisis would ensue if it were to happen.

So, why is this administration focusing on the issue, initially as a “crisis” and at least as a major “problem”? Because the radically conservative powers-that-be see the opportunity to dismantle the New Deal that brought the Democrats into power for many of the last 70 years. It’s part of this administration’s goal and ideology, to reverse the New Deal and replace it with a system driven by the conservative ideology of privatization to support business and a failed “trickle-down” economic theory. They wish to a shred the social safety net that has enhanced the quality of life in our country for most of the 20th century. Privatization, even partially, of the Social Security program is a boon for Wall Street that poses great risks and increases the likelihood of a fall into poverty for retiring Americans.

The only conceivable way that Bush’s dream of maximizing the benefits of his policies to corporations and the wealthiest Americans on the backs of the majority of our middle class and working poor families can succeed is through perpetuating the myth of crisis and manufactured fear and confusion. This is the hallmark of the current administration. This is a calculated and politically savvy move to continue a rule of coercion by fear.

During the 2004 presidential campaign, many progressives and Democrats wondered aloud why the middle and lower income classes would willingly vote against their own economic interests. If someone in a dark alley were holding a gun to your head demanding your wallet, what would you do? Poor and middle class voters need to open their eyes and recognize that the gun wielded by this administration and its supporters is loaded merely with blanks.

As citizens who care not only about our futures and the futures of our children and grandchildren, but about maintaining the integrity of this society as one which cares for its most vulnerable and its elderly, we can’t bow to fear and inflated rhetoric that causes people to support policies which run counter to reality and to the interest of Americans. We must not accept a Raw Deal in exchange for the New Deal. We must acknowledge an emperor that has no clothes and pay attention to real crises: those of the unsustainable costs of healthcare and housing in the country, the declining standard of living and a war without purpose in Iraq that’s harming human security abroad and at home.

Karen Dolan (kdolan@igc.org) is the Director of the Cities for Progress program and a Fellow at the Institute for Policy Studies in Washington, D.C.

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