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Change of Heart? Obama Reverses Position on Social Security

© REUTERS / Kai PfaffenbachU.S. President Barack Obama addresses a news conference upon talks with German Chancellor Angela Merkel (unseen) at Schloss Herrenhausen in Hanover, Germany April 24, 2016
U.S. President Barack Obama addresses a news conference upon talks with German Chancellor Angela Merkel (unseen) at Schloss Herrenhausen in Hanover, Germany April 24, 2016 - Sputnik International
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President Barack Obama made a 180-degree turn on Wednesday by calling for Social Security benefits to be expanded by increasing taxes on the wealthy.

During an economic policy speech in Elkhart, Indiana, Obama said, "We can't afford to weaken Social Security. We should be strengthening Social Security. And not only do we need to strengthen its long-term health, it's time we finally made Social Security more generous and increased its benefits so that today's retirees and future generations get the dignified retirement they've earned." The outgoing 44th President of the United States added, "We could start paying for it by asking the wealthiest Americans to contribute a little bit more." 

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In 2013, Obama’s Social Security reform policy took the form of a "chained CPI," which would have effectively cut Social Security benefits, and was presented as an olive branch to Republicans to encourage bipartisan unity. This would have had a considerable impact on people who receive Social Security, however, as the average American over 65 receives only $20,000 per year, and some 70% depend on these benefits for over half of their income.

Obama had difficulty finding support for the chained-CPI policy among Democrats in Congress. "For me, there’s no question. If this is a negotiation on budget issues, trying to deal with deficits, then Social Security has never added a single penny to the deficits of this country or to the national debt," said Rep. Xavier Beccera (D-CA) after a presentation by economic adviser Gene Sperling to the Democratic Caucus. "So if you’re talking about making cuts to seniors, to disabled folks, to children, to widows [and] widowers, to help take care of deficits, please don’t tell me to consider Social Security. The chained CPI is a cut to benefits — earned benefits — to all those folks who paid into the system."

Murshed Zaheed, political director of CREDO Action, attributes this shift, in part, to "relentless grassroots activism," and said, "We're thrilled that President Obama has joined the millions of progressive activists who support expanding Social Security." 

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Adam Green and Stephanie Taylor, who cofounded the Progressive Change Campaign Committee said, "Progressives led, the people spoke out, and the politicians are now embracing change we can believe in: Expanding Social Security benefits—never cutting them. This will be a defining issue in the 2016 election."

After the chained-CPI proposal was made in 2013, Vermont Senator and US presidential candidate Bernie Sanders said he would "do everything in my power to block President Obama’s proposal to cut benefits for Social Security recipients through a chained consumer price index."

Sanders was one of 70 House members to sign a letter to the White house calling for Social Security expansion.

"Social Security is the most successful program in our nation's history. At a time of massive wealth and income inequality, we have got to demand that the richest people in this country pay their fair share," Sanders said in a statement.

Alex Lawson, who directs the pro-expansion nonprofit group Social Security Works, says this change in Obama’s policy was inevitable, and that Social Security is too important an issue to be ignored.  

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"President Obama’s evolution on Social Security, from at one time being open to cuts to calling for an expansion of benefits … is certainly welcome news, but not at all surprising," he said, adding, "It has become impossible for elected officials to ignore the simple fact that Social Security is a solution and not a problem, and that the only thing wrong with it are that benefits are too low."

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