BUT, if you raise the retirement age and keep a lot of older people working, they will be forced to put their money back into the market. Well, they won’t be able to retire until they’re much older than their parents were at retirement. If they have any hope of ever taking time out to go travel or garden, they’re going to have to risk their money in the market, hope that it will pay off so they can get out of the job market before they’re dead and forget about social security.
My theory is that raising the retirement age forces more savings to stay in the market longer and that with a pool of people who can’t retire yet still working, the amount of money going into 401Ks and IRAs is going to go up. Stripville!The Confluence
Ok, here’s my theory about why the Masters of the Universe want to kill the social insurance programs
Kim
(h/t Naked Capitalism)
3 comments:
Doesnt account for cuts in Medicaid...
rsp,
Matt, I see the push for cuts in Medicaid and other programs for the disadvantaged as based on social Darwinism — even though much of Medicaid goes to long term care for the aging middle class. For example, my wife's sister was a psychiatrist who has been in a nursing home for long enough to exhaust her assets and is now on Title 19.
On the other hand, Wall Street has been salivating over SS for years. The neoliberals of both parties are bent on delivering it to them.
The Masters of the Universe want to make money, and that means they want everything to be private and a potential source of private sector profits. They want health care to be private, retirement programs to be private, schools to be private, police to be private, fire departments to be private - they even want the armed forces to be private. Every place where large amounts of money move in public programs for public purposes is a potentially lucrative source of future profits. The Masters want to get their paws on this activity so the can take a cut.
Nothing mysterious here. Every guy in corporate finance, from the top dog to the lowliest mutt, has a target and is constantly on the lookout for something he can grab to bring in more money and earn more commissions and bonus.
http://neweconomicperspectives.org/2012/11/neoliberal-mythologies.html
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