I read in The New York Times today that now, even "good guys" (their term) like the AARP are ending contributions to their 401(k)'s, in an effort to cut costs.
This drives me crazy.
Years ago, there used to be pensions because, as we all know, people age and need something to retire on in their later, aged years.
Pretty complicated huh? (read sarcasm)
It was only fair and intelligent, for pity's sake.
We work at jobs for decades and, in return, it just made sense that responsible companies would put a bit of money aside--yes, from profits--for each employee so two things would develop.
First, the good employee would be rewarded for good work and encouraged to stay with the company. (We used to reward lonevity at firms).
Secondly, at the end of those decades of work, the associate would have money to take care of themselves in their old age.
But that was thousands of years ago, it seems.
Companies decided long ago that those pesky, "expensive" pensions were costs that had to be cut so they were, bit by bit, done away with.
That was bad enough.
At the time, the Federal Government should have stepped in, I believe, and required companies to maintain the pensions. It was good, too, for the country, so people had these saved nest eggs and could live on them in later life.
But naturally not.
Fortunately, someone came up with a 2nd-best idea and that was to start these 401(k)'s. The companies would get a tax deduction and the employee could contribute to them and voila'! While not as good for the employee as the pension, since half of it was usually paid for by the employee, at least there would be, again, something for that same employee to retire on.
But again, the ugly, voracious, self-eating "free markets" and capitalism come along, seeing a pot of money, one that it also views as an "unnecessary cost" and does away with it.
So now, in 2009 America, the worker--the old "salt of the Earth" we used to celebrate--is totally and completely, with the exception of the pittance of Social Security, alone and on his/her own. And that's assuming Social Security will survive, which most people assume it won't.
If you are one of the lucky few who have been able to keep a job, through good times and bad, and also been prescient and disciplined enough and able to save all your working career, you're okay.
Maybe.
Probably.
Possibly
If you stay lucky.
If, on the other hand, you've ever been let go from a job or had some expensive health care or other problem or just plainly weren't lucky and thrifty and extremely disciplined, all--you're screwed.
Too many Americans, frankly, down through the decades, have fallen into this last group, especially given the current financial crisis striking the US.
And that's why the US Federal Government should have held up expectations of its corporations, so we could further strengthened the entire society and for the long term.
Instead, all that corporate money just fattens the wallets of a select few lucky, conniving, shrewd, manipulative corporate titans who end up with hundreds of millions and even billions of dollars. All the while the middle class shrinks and people start doing without important basics like health care, insurance, food, in some cases, and more.
I'm sure some free market capitalist, Republican, conservative, right-winger would defend this barbaric, unbalanced, unfair, inadequate and, really, broken system.
I sure can't.
Link to story: http://www.nytimes.com/2009/06/27/your-money/401ks-and-similar-plans/27money.html?_r=1&scp=1&sq=Et+tu%2C+AARP%3F&st=nyt
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