Cato Cave-In
A couple posts ago, I picked up on a theme that Josh Marshall and others have written about, the double talk by Republicans about Social Security privatization. Though the right's policy machine, led on this issue by Cato, had always called it privatization, once GOP leaders realized in August 2002 the electoral hit they were taking on the issue they decided it needed an extreme makeover as "personal retirement accounts."
One aspect I find fascinating is the capitulation of Cato itself to the rhetoric of doubleplusgood retirement accounts. The obvious way it manifested itself was in the name of the project. As Brad DeLong wrote at the time, shortly after the NRCC memo
in lockstep obedience to this change of party line ... Ed Crane's non-partisan independent thinktank changed the name of its project from "Social Security Privatization" to "Social Security Choice."
The shift Cato made -- yes, to repeat DeLong's smirk-laden line, "non-partisan independent thinktank" -- was more than just the project's name. Take a look at their publications before and after the NRCC memo and you can see they were every bit a part of the marketing campaign. First, a selection among the many reports and op-eds written on Social Security pre-memo:
- Stephen Moore, "Social Security: A Ticking Time Bomb," undated
- Peter J. Ferrara, "A Plan for Privatizing Social Security," April 30, 1997
- Jose Pinera, "Time to Privatize Social Security," April 10, 1998
- Michael Tanner, "The Candidates and Social Security," December 20, 1999
- Andrew Biggs, "The Promise of Privatization," March 9, 2001
- Andrew Biggs, "Will the President's Plan for Privatization Take the Security out of Social Security?" June 3, 2002
The most obvious thread running through these was that "privatization" was a term used quite openly and clearly throughout. While the details of policy proposals differ, in each case when the question was considered of diverting some money collected through payroll taxes to private investment accounts it was labeled "privatization," here by supporters of such a plan.
Now, let's look at a few pieces they published post-memo:
- Michael Tanner, "Social Security and the 2002 Election," November 7, 2002
- Lea Abdnor, "A Better Way to Fund Retirement," November 5, 2003
- Michael Tanner, "The 6.2 Percent Solution: A Plan for Reforming Social Security," February 17, 2004
- Berna Yigit Brannon, "A Social Security Plan to Last," August 3, 2004
There are several aspects worth noting from these and the other articles on Cato's site. First, they took the advice of the NRCC to heart in nearly eliminating direct references to "privatization." There was an awkward transition period, to be sure, since no doubt the rhetoric rubbed a few libertarians at Cato the wrong way. Take, for instance, the piece from September 18, 2002, entitled "A GOP Surrender on Social Security?" (A coauthor, Stephen Moore, had left his position as Director of Fiscal Studies at Cato to found Club for Growth in 1999, but retained the title of senior fellow at Cato; he was one of the coauthors of the memo to the NRCC discussed in the Dionne column complaining about the new rhetoric.)
Second and more subtly, after September of 2002 on those occasions when the word is used by Cato writers it is placed in quotations marks. Is it because they are using the word ironically? Because it's not really privatization after all? Or because they are trying to undermine its meaning at the same time they use its synonyms? I vote for #3.
Third, take a look at the list of articles and position papers on the page labeled "Social Security Reform Plans" and you will see an abrupt shift in focus after the Brannon article of August 3, 2004. After that date not a single piece is written in favor of privatization and instead all of the focus is to attack the Democrats. In other words, when one is losing the rhetorical war the last line of defense is offense. And what better time than in the midst of an election.
Looking at the sum of Cato's writing on Social Security privatization, and it is substantial, it is apparent that despite whatever intellectual independence the organization enjoyed earlier in its lifetime, certainly over the last two years and on this issue it has become simply a mouthpiece for the Republican Party.


















