Commentary—

Social Security Reform is ‘Voluntary,’

But Major Media Quiet

By Herman Cain and Dan Gainor

One thing is certain, President George Bush has ended Social Security reform’s reputation as the “third rail of American politics.” Now the only shocking thing about Social Security is how poorly the major media are covering reform.

First, some facts. Baby boomers start retiring in 2008, which is when tax revenues for Social Security start to decline. In 2018, the gravy train runs off the rails and Social Security will start to cost the government more money each year than taxes bring in. According to a Washington Post survey, 69 percent of Americans agree Social Security will run out of money in the next 20–40 years. Yet only one-fourth call the situation a “crisis.” You can thank the major media for that statistic.

The major media have done nothing short of a full-court press against Social Security reform.

Look how CBS Evening News handled the issue the night of President Bush’s State of the Union address. Anchor Dan Rather connected the Bush proposal with British reforms, though he admitted the Bush plan is different. The three-plus-minutes story detailed almost every flaw of the British plan, leaving the obvious impression: Bush’s plan is as flawed as Britain’s.

The UK plan was an interesting choice for CBS. Chile also privatized its retirement system and has had enormous success — averaging more than a ten percent return after inflation for 24 years. At the end of the story, Rather acknowledged that “supporters say the plan works quite well” in Chile — but no three-minute details by CBS, only a vow to cover the story “in an upcoming broadcast.”

Chile’s success didn’t stop the reform opponents at The New York Times. On January 30, The New York Times Magazine claimed that “the program is not in crisis.” Three days before, reporter Larry Rohter had eviscerated the Chile program with a mixture of errors and distortions to spin the good news into bad. Rather than dwell on the enormous gains of the private accounts, Rohter cited a socialist politician, a discredited World Bank report, inaccurate numbers, and privatization opponents to come up with a one-sided result.

The article cited “Minister of Labor and Social Security Ricardo Scolari” saying, “It is evident the system requires reform.” Not only is the name of the source incorrect (it’s Solari), but Rohter left out the point that Solari belongs to Chile’s Socialist Party and, as such, is not a defender of privatized anything.

Rohter’s 8,000-plus-word article was more commentary than journalism. Contributing writer Roger Lowenstein advocated raising taxes while painting Social Security as “a model of efficiency.” One of the reasons for this, claimed Lowenstein, is “participation is near universal.” He didn’t mention that participation is mostly mandatory.

In story after story, reporters did more than report, they took sides. Nightline’s Ted Koppel claimed Bush was using “fear” to market Social Security reform. He followed that up with a quote from a sign: “Pessimism is a misuse of the imagination.” Today’s Matt Lauer said Bush “wanted to be a uniter not a divider. This has division written all over it.”

On February 8, NBC Today Show’s coverage of Social Security reform was sponsored by the American Association of Retired People (AARP), a leading opponent of reform. An hour after a “debate” that included an AARP bigwig arguing against reform, the AARP logo was displayed on screen with a voiceover saying: “Today’s weather is brought to you by AARP. The power to make it better.” Perhaps the AARP should consider a new slogan: “The power to influence the media.”

ABC’s World News Tonight’s February 10 report on reform was essentially a list of complaints from the very same AARP. It began with a focus on a handful of protesters who oppose reform. Of course, a president has protesters at most every event; media types show them when it helps make their point. The story included comments from the fear-mongers at Rock The Vote who, when they aren’t warning Americans of nonexistent plans for a draft, are joining the AARP and saying the Social Security sky is falling.

That’s how the major media cover Social Security reform. And that’s why only one-quarter of Americans believe there is a “crisis” while also believing the program is going bankrupt. The old media are ignoring the essential principle of unbiased journalism. They seem unwilling to report fairly on ideas to give Americans more control over their own money and their own retirement.

It’s important to remember that the Social Security reforms being discussed are voluntary, just like watching the news. The big difference is that the reforms make economic sense and the reporting about them does not.

(Herman Cain, former president and chairman of Godfather’s Pizza, Inc, former senate candidate in Georgia, and former CEO of the National Restaurant Association, is now the national chairman of the Media Research Center’s Free Market Project. Dan Gainor is director of the Free Market Project. )