Thinking of retiring? If you’re like most people, think again. Shamus Cooke presents a terrible problem that many of us may be facing, but it would be interesting to know his reasons for believing there was a conspiracy.
Collapse of Pension Funds: The End of Retirement?
By Shamus Cooke, writing at Global Research
Unless things change fast, human history will show that the phenomenon of “retirement” was limited to one generation. After World War II, when European and Japanese economies stood in tatters, American capitalism could fulfill “the American dream,” since there was little foreign competition to speak of. For the first time ever, workers were promised that — after working thirty or so years — they would be able to securely retire. That was largely the case…for one generation.
The second generation is having a devastating reality check. 2008 was supposed to be a watershed year for retirement: it was the first year that the baby-boomers turned 62, and the retirement frenzy was to begin (since people could begin to draw on their social security benefits). Early in the year, however, a study was conducted that found one-fourth of these boomers were delaying retirement (only the baby-boomers who were actually able to plan for retirement were studied). The economy has since nosedived, and many more retirements are being delayed. The unfortunate reality is that many who planned on retiring will work until the grave, joining the millions of other baby-boomers who never had such dreams.
The experts are calling this the “perfect storm” for retirement. Everything that could go wrong is in fact going wrong. This storm, however, was not created by supernatural forces, but the coordinated effort of big-business and their puppet politicians.
The deliberate destruction of the pension and its replacement by the 401(k) was, of course, a giant step towards attacking retirement; but now that the economic crisis has emerged, we’re beginning to see just how ruinous the effects are.
At the end of September, just as the crisis was beginning to gain steam, it was discovered that in the previous year the value of stocks in 401(k) accounts had fallen by nearly $2 trillion! Much more has been lost since then. This is especially devastating since almost one-third of 401(k) participants in their 60s had 80 percent of their money in stocks (pension funds have been similarly destroyed).
The 401(k) was the scheme of the century. Corporations offloaded their "burdensome" pensions and used the combined forces of the media and politicians to sell the ruse to the public, to the great benefit of Wall Street…
Every “safe bet” for investing has been proven unsafe; the recession has left nothing untouched. After the dotcom bubble burst — taking with it millions of people’s 401(k) savings — the housing market became the place to invest…
Rep. Robert Andrews (D-NJ), who chairs the House subcommittee on health, employment, labor and pensions, put it bluntly: “Some will have very little, some will have almost nothing, and some will have nothing when they retire”. Of course, people who “have nothing” do not retire…
Now even the threat of bankruptcy is constantly used in union contract negotiations to scare workers into concessions, since after achieving bankruptcy, labor agreements are torn up. The threat of closing the company’s doors is a very effective form of intimidation.
This phenomenon is at the center of the GM debate. The corporate politicians in congress cannot decide whether to appoint a “Car Tsar” to oversee the destruction of the autoworkers pensions, or use the proven method of bankruptcy. Not a day goes by that the corporate media doesn’t join hands to assail the pension and health care benefits of the “spoiled” GM workers. The hypocrisy is sickening…
More here.
