Saturday, June 18, 2011

GOP retirement plan: work until death

If you still had any question whether the AARP was an advocate for seniors or just a corporate insurance company front, that should have been resolved today when their CEO (for policy) came out with a new position for seniors. (bend over and spread 'em) They are willing to consider changes to Social Security for future retirees.

Any further increase in retirement age for people who do physical work for a living means either they work until they die or they live without social security for years hoping to survive long enough to collect on the "entitlement" that they have paid for. That 3 trillion dollars (that will grow to 4.3 trillion by the time all us boomers retire) in the Social Security Trust Fund belongs to Wall Street and not to retirees and don't you forget it.

A reduction in benefits is also simply theft of the Trust Fund. There are two reasons that the Trust Fund will eventually run out of money. The cut off for contributions is set too low and most of the income of the rich now comes in capital gains and the like that aren't taxed at all. The second reason is the corporate fascists have suppressed wages, one estimate I've seen is that without Reagan and his disciples the average middle class income would be 20,000 a year higher.

Reagan built a steady decline into the benefits based on a rigged CPI so that current retirement benefits are 40% lower than in 1980. To be fair, the Republicans have said for the last thirty years that you couldn't expect to retire on Social Security so they created the 401(k) and did away with those pesky pension plans as well. If you've checked your statement lately you will find your 401(k) is now a 301(k) and after the next crash it will be a 000(k).


Anonymous said...

These people really are sociopaths. I guess Breton James from Oliver Stones "Wall Street II: Money Never Sleeps" best summed up their mindset when asked what dollar amount was was enough for him be happy-"More" he replied.

The grabbing hands
Grab all they can
All for themselves
After all

From "Everything Counts in Large Amounts" by Depeche Mode.

Anonymous said...

Not that you don't know this already, but raising the retiement age supresses wages even further by expanding the labor supply. Is it any wonder why recent college grads can't find jobs and only 1 in 4 teenagers can find summer jobs.

They realize there are more "humane" alternatives to expanding the Trust Fund (e.g. raising or "donut-holing" the FICA cap). However, they would rather return to a Dickensian world where the old died off because they were too poor to retire. I am not a religious person, but is there a greater embodiement of evil than these people?

Anonymous said...

Thanks for this post Prairie2...

It makes me ill to think about how destructive these Republicans are...They are as pro-corporation anti- human being as one can possible be...

Amy Smith said...

Thank you for posting this. I hope they change their ways.
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Chris said...

Thanks for all these information and clarifications about retirement. This will surely be a great help for our elders.

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