Saturday, April 28, 2012

Quotation for Today: The 401k Confidence Game or Why We Must Have a Financially Strong Social Security

The urgent need for a financially strong Social Security program, one that will replace 75 percent of a person's final income, is captured in the quotation for today. 
“The 401(k) is a failed experiment. It is time to rethink it.”
Teresa Ghilarducci

Teresa Ghilarducci is a behavioral economist at The New School.  Her comments were part of an op-ed by Joe Nocera.  The link to Joe Nocera's article is included in the citation.

The selling of the retirement program known as 401k, which was sold as a replacement program for the tried and true defined benefit retirement plans or pensions, was a true flimflam. It was a clever confidence game with the victims being the American worker. Now, it is too late for many Americans, who are near retirement, to create enough savings to support them when they cannot work anymore.  Sadly, many of these same people completely bought into the 401k confidence game and voted for Republicans.  

Moreover, this 401k confidence trick had a companion, the productivity ruse. The productivity trick -- another confidence game perpetrated on the American worker -- has help enrich the ultra-wealthy at the expense of middle- and working-class Americans.  For more on the productivity trick, follow the link included in the article cited in the related information section.

Nocera, Joe. "My Faith-Based Retirement." The New York Times 27 April, 2012: online edition.

Related information:

Krugman, Paul. "The Conscience of a Liberal: Where The Productivity Went." The New York Times 28 April, 2012: online edition.

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