U.S. Sen. Dick Durbin questioned direct government investment in private businesses and lamented lost momentum in fixing Social Security, during a stop in Bloomington.
Social Security
Durbin said he and a bipartisan group of lame duck senators tried to promote a fix to the looming Social Security funding crisis and there was no appetite for it even though the senators were willing to take public heat for originating the plan.
"Let's get started now. The longer you wait, literally days and months, the more expensive it's going to be to fix Social Security, and we have got to fix it. So many people depend on it,” said Durbin.
Social Security trustees forecast the trust fund for the social insurance program will run out of money in late 2032 if nothing is done to increase revenue.
"I'm afraid it won't be done this year. I think that's a missed opportunity. I'm prepared to make some tough decisions to make sure Social Security is always going to be there. Maybe a few of us doing that will make it easier," said Durbin.
Durbin said the last time the trust fund needed help was in 1983, his second year in Congress, and the public accepted tough measures because leaders were honest about the problem.
"We broke every rule. We raised the retirement age. We started taxing your income if you are on Social Security. We had more money coming out of paychecks by employers and employees. We did it all and nobody lost an election because the system survived," said Durbin.
He said half of the people receiving Social Security today have no other source of income.
“If there's a 22% cut, as we anticipate in 2033, it's going to be a disaster for these families. Think about 22% more in your cost of living which is already too high. It's an example of an extreme,” said Durbin.
Durbin implied that political will is the main obstacle to a solution when he told a story about the group of senators trying to find a starting point for a bill.
“I said to Angus [King, Independent of Maine], 'Do you have AI on your phone?' He said, 'Sure.' I said, 'Type in what would be the best way to give 50 years of solvency to Social Security with a minimum cut in benefits.' It took AI three minutes to give him an answer… So, the options are out there,” said Durbin.
He said people understand Congress must not fail on this problem.
Durbin said he believes the government should remove the cap on income that is taxed for Social Security, as a part of the solution.
Government capitalism
The Illinois Democrat who will leave the Senate next year said he's "dubious" about the federal government taking ownership stakes in private businesses, such as a firm that will develop Venezuelan oil fields.
"It is hard to expect us to make objective decisions on the future of a corporation when either someone in government has an interest in it or the government has an investment in it. You look at things totally differently," said Durbin.
The federal Office of Strategic Capital created by the Trump administration has so far bought into more than 30 businesses. Some are in the tech sector. Most recently, the White House said the U.S. will own 35% of a new company that will control and develop substantial oil reserves in Venezuela.
Durbin looked askance at so-called "government capitalism."
“If this form of capitalism ends up enhancing the income and salary of any public official, underline any from the top on down, I oppose it," said Durbin.
