You’d think that Goldman Sachs — the mega-bank that took $10 billion of taxpayer money — would show a little bit of humility in the wake of the financial crisis. You’d be wrong.
In an interview with CBS News, Lloyd Blankfein, the Goldman CEO who famously said he was doing “God’s work,” said that Social Security benefits must be cut by raising the retirement age and Medicare and Medicaid must be “contained” as well:
PELLEY: Social Security, Medicare, Medicaid?
BLANKFEIN: You can look at history of these things, and Social Security wasn’t devised to be a system that supported you for a 30-year retirement after a 25-year career. … So there will be things that, you know, the retirement age has to be changed, maybe some of the benefits have to be affected, maybe some of the inflation adjustments have to be revised. But in general, entitlements have to be slowed down and contained.
PELLEY: Because we can’t afford them going forward?
BLANKFEIN: Because we can’t afford them.
Let’s get something clear. Blankfein made these comments in the context of what should happen in budget negotiations related to the debt. Social Security does not add one penny to the deficit. And it’s fully solvent until 2033 — it would be fully solvent well into the 22nd century if we simply lifted the payroll tax cap.
Instead of letting banking tycoons guide our public policy,we should look instead to Senator-elect Elizabeth Warren (who Goldman Sachs spent big to try to defeat in the recent election).
Warren has an alternative, truly balanced approach to tackling the deficit. During a campaign debate last month, she laid out a popular, credible vision for dealing with the deficit: cut back on wasteful military and agriculture subsidy spending, and make …