Tag Archives: 401k

Attack On Pensions

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Tackling the Social Security Mess,

I came away believing that a consensus exists among economists across the ideological spectrum on at least one important issue: America’s entitlement spending — mostly Social Security and Medicare — is not sustainable.

It’s the TAX CUTS FOR THE RICH that are not sustainable. THAT is why we will have trouble providing for our people as we get older.
United Aitlines was supposed to fund its pensions. Instead, it paid that money out as dividends, increased share prices, bonuses or otherwise enriching what we might call the owner class. Same with all the other companies that were supposed to be funding their pension obligations. They handed the money out to the rich instead, and now say “too bad, ain’t gonna pay you” to the people who did the actual work.
America was supposed to fund its Social Security. Instead it paid that money out as tax cuts, corporate subsidies, no-bid contracts, whatever, to the owner class. They handed the money out to the rich instead, and now says “too bad, ain’t gonna pay you” to the people who did the actual work.
But I’ve been going on about this for years.

Where the Pension Money Went

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Almost every conversation I have with someone over a certain age turns to how they have either lost or afraid they will lose their health insurance and pension.
In the Reagan days, they sold people on the idea that 401Ks were somehow a good thing, and started moving everyone off of pensions. But a pension means your company puts the money away for you, on top of your pay. A 401K means it is entirely on the worker to fund retirement out of a shrinking paycheck. And people just can’t do that – take home pay goes almost entirely to the bills.
Meanwhile corporate profits are WAY up since pensions were replaced by 401Ks. Part of that if from the money that had been used for worker retirements and gave it out as profits instead.

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