Republicans Advance Goal of Pensions Tied to Stock Market
Republicans want to move public pensions and Social Security to investments linked to the stock market. IF, this had been the case for Social Security in 2008, 53 million Americans would have been ruined. The Repubs want to direct, steer, and otherwise funnel workers savings to the stock market, to the ‘casino’ where there is a high degree of risk and no regulation of many derivatives (credit default swaps) which are tied to various investment funds.
The next generation of Wisconsin teachers and other public employees, a sector long blessed with one of the most generous retirement plans in the country, may be facing an entirely different future.
Policy experts say proposed changes to Wisconsin’s public-employee pension plan could be the first step toward eventually implementing a 401(k)-style system – shifting the burden of saving for retirement onto workers, and all but eliminating the financial incentive for lifelong loyalty to a single employer.
“It’s one of those fiscal inevitibilities,” said Todd Berry, president of the Madison-based Wisconsin Taxpayers Alliance research group. “The economics, the demographics – everything about it pushes everybody in the same direction.”
Comment: as regards ‘loyalty’ to a single employer – Americans have been burned by badly by many employers through pension raiding, benefit cuts, mandatory wage or salary reductions – so this can cut both ways. These same employers may find themselves with a labor shortage as workers will move on to other opportunities rather than put up with the unfair practices, i.e. abuse.