Benishek takes heat from both sides over positions on social security

Over the summer Dist. 1 Republican congressional candidate Dan Benishek — a Tea Party-affiliated surgeon from Iron River — told an audience at a candidates forum in Petoskey that he was in favor of privatizing social security.

“Social Security as it exists now is bankrupt,” he said. “Those of you 50 years of age and younger will have no money when you get to retirement age.”

Benishek said that he agrees with Republican Congressman Paul Ryan’s plan to phase out Medicare and Social Security and replace them with personal savings accounts and health insurance plans.

“I am all in favor of privatizing it,” he said.

Since winning the Republican primary by a historically narrow 15 vote margin last month, however, Benishek has toned down his rhetoric on privatizing social security.

Now Benishek says that he just wants to explore having some workers that are under 55 years old have the option to invest some of their social security contributions in private accounts, and in multiple recent releases he has emphasized that he does not support changing benefits for those who are already retired.

Campaign spokesman Trent Benishek said that the plan would also involve having the government ensure that people make safe investments in their private accounts.

Benishek’s moderated language on social security has prompted criticism from across the political spectrum, with Democrats calling him a “fraud” and some Tea Party activists accusing him of “flip-flopping” on an issue that they hold dear.

The Dist. 1 race was labeled a political toss up this spring after the retirement announcement from longtime Democratic Congressman Bart Stupak. Benishek’s campaign has successfully rallied frustration with establishment politics and government spending but his changing rhetoric on social security may signal a sensitivity to on the ground economic reality — more than a quarter of the people in this district receive social security benefits and with unemployment ranging over 20 percent in some counties, social security payments represent critically needed and reliable cash for many families.

Democrat candidate Gary McDowell calls the social security system a “sacred trust” and has blasted Benishek for his support for eliminating it.

“I am absolutely committed to protecting Social Security for today’s seniors and future generations, which is why I pledged to oppose any and all efforts to privatize Social Security, reduce benefits or raise the retirement age,” McDowell said. “Dan Benishek can’t say the same because he has been and continues to be a strong advocate for fully eliminating Social Security, even going as far to call the program a disaster.”

“He is being a fraud about where he really stands on this issue, McDowell campaign manager Dan Krupnik said of Benishek. “He changed his position after he got through the primary.”

“Slow privatization wont work because the system needs the money from people who are working to pay for the benefits received by current retirees,” Krupnik said. “You can’t start funneling money out. Under Benishek’s system there no guaranteed money for those who are already retired.”

Privatization is risky, he said. “We saw in 2008 an economic crisis on Wall Street where entire retirement accounts were wiped out. What would we do if that happened after we privatized Social Security?”

Krupnik acknowledged that the social security system may need some modifications to remain sustainable in the future but he said that Benishek’s claims that the system is facing immediate bankruptcy are inaccurate and intended to scare people.

According to the Social Security Administration there are sufficient reserves in the Social Security Trust Funds to pay scheduled benefits until 2037.

“I think that will be a big issue for this race,” Krupnik predicted. “Dan Benishek has made it clear that if he is elected this will be a priority.”

There are signs that moderation of Benishek’s privatization views could play out negatively among Tea Party elements.

“We believe the government shouldn’t have anything to do with peoples retirement,” said Rich Carlson, one of the founders of the Northern Michigan Liberty Alliance, a coalition of Tea Party groups from across Northern Michigan.

Carlson is the campaign manager for independent candidate Glenn Wilson, who has not yet released a position on Social Security.

Speaking as a Tea Party activist Carlson said that he believes that the Social Security system is in the red and that privatization would be beneficial.

“We’d pump a lot of money into the stock market and fuel economic growth,” he said, otherwise the federal government is going to have to start selling land and other assets to meet Social Security obligations.

“If the politicians now say that we can continue to give benefits like we have done they are lying, it is not possible.”

“I believe Benishek has flip-lopped on the issue,“ Carlson said, “He knows that for seniors you can’t tell them that their plan is going to change. … But you’ve got to start with the pain somewhere.”

Beneshek is not the only Tea Party-backed Republican congressional candidate to change tunes on social security following the primary.

In Nevada, Republican Senate candidate Sharron Angle, another Tea Party favorite, is being criticized for a similar position change.