Growls

Washington Post columnist Robert Samuelson takes a sobering look at America’s “welfare state” today. Especially thought-provoking are some of the numbers he uses to support his premise that “the United States has a welfare state, and its future is precarious,” and that:

“The true significance of General Motors' bankruptcy lies more with this welfare state than with the battered condition of American capitalism.”

In the next paragraph, he explains:

“Broadly speaking, the U.S. welfare system divides into two parts -- the private, run by firms; and the public, provided by government. Both are besieged: private companies by competitive pressures; government by rising debt and taxes. GM exemplified the large corporation as private welfare state. In contracts with the United Auto Workers, GM promised high wages, lifetime employment, generous pensions and comprehensive health insurance. All this is ancient history: New workers get skimpier benefits.”

Here are a few examples of the statistics Samuelson uses to buttress his premise:

• “Last year, about 50 percent of male workers ages 50 to 54 had been with the same employer at least 10 years; in 1983, that was 62 percent.”

• “Health insurance and pensions tell similar stories. In 2007, employer-provided insurance covered 177 million Americans, 59.3 percent of the population; in 1999, coverage was 63.9 percent. Since 1980, companies have gradually moved from "defined benefit" to "defined contribution" pensions, notably 401(k)s."

• “Since 1960, government has changed radically. Then, 52 percent of federal spending went for defense, 26 percent for "payments for individuals" -- the welfare state. By 2008, 61 percent consisted of "payments for individuals," 21 percent for defense.”

In his concluson, Samuelson writes:

“The U.S. welfare state is weakening; insecurity is rising. The sensible thing would be to decide which forms of public welfare are needed to protect the vulnerable and to begin paring others. Our inaction poses another dreary parallel with GM. It was obvious a quarter-century ago that GM the auto company could not support GM the welfare state. But the union wouldn't surrender benefits, and the company acquiesced. Inertia prevailed, and the reckoning came.

“The same cycle, repeated on a national scale with sums many multiples higher, would be correspondingly more fearsome.”

Take a few minutes to read the entire column. When you’ve finished, call Senators Jim Webb (202-224-4024) and Mark Warner (202-224-2023) and Rep. Jim Moran (202-225-4376) and urge them to read it.