For the greater part of the last century, profit from goods and services was divided proportionally between wages (including benefits) and dividends with increases in productuvity being shared so that the wages and dividends were on parallel tracks. Globalization, as descibed in my undergraduate courses was exporting units of labor at the current wage to improve the standard of living in the outsourcing country, allowing them to be new customers (Henry Ford model) of our goods and services. That was the high road, instead the low road was taken and low cost labor was pursued around the globe, and now wages (and benefits) were no longer on a parallel track with dividends, but a flat line as dividends accelerated away from the wage track with every productivity gain and inequality increased. That’s when Mom had to join Dad in the workforce to make ends meet.
The real gas problem is that pensions were originally provided for by contributions INVESTED in stocks or bonds that were to return interest and thus provide for growth of the fund, SS is the same thing. Instead, in California, starting with Saint Ronnie, those funds were raided for other “projects” paying off for contributors, and the same thing went on when Ron moved to the White House. The same thing occurred in other states, so it wasn’t just California, but it does go back to the philosophy of Goldwater, unleashed by Reaganomics on the nation, as well as states.
Pension payouts were originally set by actuarial tables and formulas to maintain balance, and yes, inflation did make the cost of living increases continue, but nobody on the right seems to recognize that PROFITS to corporations are what has driven all that inflation. Even when those profits were only on paper for the middle classes, the 1% cashed ’me in for their own benefit.
You know what would GREATLY reduce pension costs? Single-payer health care. That’s right, socialized medicine. Imagine the relief the lifting of the burden of health care would be from America’s pension plans. But are we smart enough to figure that out? No, we’re a bunch of stupid, ignorant, backwards cowards, too afraid of change and progress.
The Government breaking it’s promises is nothing new. As Will Rogers said, to the best of my recollection: “They take the Indians’ land. Then tell the indians they will be given other land, until the grass won’t grow and the rivers don’t flow. On the land they give them the rivers won;t flow and the grass can’t grow. Then they discover oil on it and they want it back.”
Except that it’s your friendly neighborhood political slime that are to blame. They spent all that pension money, decades ago. And completely failed to replace it. Why should they care? It isn’t THEIR money. They got theirs – why give a sh*t about anybody else? Heck, they can just raise taxes and pay for it all!
jonesb over 8 years ago
His (wmconelly’s) mouth is full of tongue.
BaltoBill over 8 years ago
Nice narrative. Thanks.
superposition over 8 years ago
For the greater part of the last century, profit from goods and services was divided proportionally between wages (including benefits) and dividends with increases in productuvity being shared so that the wages and dividends were on parallel tracks. Globalization, as descibed in my undergraduate courses was exporting units of labor at the current wage to improve the standard of living in the outsourcing country, allowing them to be new customers (Henry Ford model) of our goods and services. That was the high road, instead the low road was taken and low cost labor was pursued around the globe, and now wages (and benefits) were no longer on a parallel track with dividends, but a flat line as dividends accelerated away from the wage track with every productivity gain and inequality increased. That’s when Mom had to join Dad in the workforce to make ends meet.
Dtroutma over 8 years ago
The real gas problem is that pensions were originally provided for by contributions INVESTED in stocks or bonds that were to return interest and thus provide for growth of the fund, SS is the same thing. Instead, in California, starting with Saint Ronnie, those funds were raided for other “projects” paying off for contributors, and the same thing went on when Ron moved to the White House. The same thing occurred in other states, so it wasn’t just California, but it does go back to the philosophy of Goldwater, unleashed by Reaganomics on the nation, as well as states.
Pension payouts were originally set by actuarial tables and formulas to maintain balance, and yes, inflation did make the cost of living increases continue, but nobody on the right seems to recognize that PROFITS to corporations are what has driven all that inflation. Even when those profits were only on paper for the middle classes, the 1% cashed ’me in for their own benefit.
louieglutz over 8 years ago
well, another day of the media matters and organizing for action shills reading from their script. you must have it down pat by now.
Durak Premium Member over 8 years ago
You know what would GREATLY reduce pension costs? Single-payer health care. That’s right, socialized medicine. Imagine the relief the lifting of the burden of health care would be from America’s pension plans. But are we smart enough to figure that out? No, we’re a bunch of stupid, ignorant, backwards cowards, too afraid of change and progress.
Durak Premium Member over 8 years ago
Time for Dad to quit voting Republican and cutting his own balls off.
Lyman Elliott Premium Member over 8 years ago
The Government breaking it’s promises is nothing new. As Will Rogers said, to the best of my recollection: “They take the Indians’ land. Then tell the indians they will be given other land, until the grass won’t grow and the rivers don’t flow. On the land they give them the rivers won;t flow and the grass can’t grow. Then they discover oil on it and they want it back.”
trm over 8 years ago
Except that it’s your friendly neighborhood political slime that are to blame. They spent all that pension money, decades ago. And completely failed to replace it. Why should they care? It isn’t THEIR money. They got theirs – why give a sh*t about anybody else? Heck, they can just raise taxes and pay for it all!