There is a common belief among political elites that the average Joe and Jane does not possess the knowledge, expertise nor acumen to understand most things economic. This represents one of the chief reasons why politicians skim through the economic details in legislation and law during public appearances. If they honestly described all the ins and outs of economic-focused bills, average folks would be bored to tears and completely confounded by what they just heard and saw.
Our political leaders tell us -- both explicitly and implicitly -- that this lack of ability to understand complex accounting instruments is the prime reason we elected them to be our eyes and ears. They will go to our nation's and state capitols to wade through all this legalese verbiage for us and all they ask is that we trust their informed judgment on our behalf.
It may come as a surprise to some of you, but I agree with part of their rationale. The sad truth is that the vast majority of Americans don't know the first thing about economics and economic policy. For example, far too many of my fellow citizens do not seem to understand the connection between government revenues and the level of services government is able to provide in a fiscal sense. Consequently, such people fervently vote for measures to limit taxes, only to turn around to bitch and moan when services they count on are reduced or eliminated.
But here's a very interesting thing about so many of our political leaders. On the one hand, they contend that their constituents are ignorant on far too many economic matters. However, on the other hand, they support privatizing Social Security so that these same ignorant masses will be granted the freedom to manage their own retirement accounts.
Wouldn't a thinking person understand that this represents a rampant contradiction?
But there actually is no contradiction at all! Conservative and some liberal leaders want to hand over retirement accounts to people that they KNOW won't manage them properly. They want to put this money in the hands of average citizens who will fall victim to suave investment counselors and gimmicky advertisements. And it shouldn't take a rocket scientist to understand why.
This is nothing more than another naked attempt to bilk the poor and middle class out of our own money. They want to trick us into transferring what little we still have to those who already have more than enough.
In essence, they want to create the grandest bail out of them all -- one that is never ending.
Our political leaders tell us -- both explicitly and implicitly -- that this lack of ability to understand complex accounting instruments is the prime reason we elected them to be our eyes and ears. They will go to our nation's and state capitols to wade through all this legalese verbiage for us and all they ask is that we trust their informed judgment on our behalf.
It may come as a surprise to some of you, but I agree with part of their rationale. The sad truth is that the vast majority of Americans don't know the first thing about economics and economic policy. For example, far too many of my fellow citizens do not seem to understand the connection between government revenues and the level of services government is able to provide in a fiscal sense. Consequently, such people fervently vote for measures to limit taxes, only to turn around to bitch and moan when services they count on are reduced or eliminated.
But here's a very interesting thing about so many of our political leaders. On the one hand, they contend that their constituents are ignorant on far too many economic matters. However, on the other hand, they support privatizing Social Security so that these same ignorant masses will be granted the freedom to manage their own retirement accounts.
Wouldn't a thinking person understand that this represents a rampant contradiction?
But there actually is no contradiction at all! Conservative and some liberal leaders want to hand over retirement accounts to people that they KNOW won't manage them properly. They want to put this money in the hands of average citizens who will fall victim to suave investment counselors and gimmicky advertisements. And it shouldn't take a rocket scientist to understand why.
This is nothing more than another naked attempt to bilk the poor and middle class out of our own money. They want to trick us into transferring what little we still have to those who already have more than enough.
In essence, they want to create the grandest bail out of them all -- one that is never ending.
We have already had a test run for this. Over the past ten years most companies changed their employee retirement fund to individual 401K accounts. the company my wife works for did this. All of a sudden 3,000 employees are responsible for managing their own retirement money.
ReplyDeleteOf course, the first thing that happened was the accounts were nearly wiped out by the collapsing economy. Most people have still not recovered from this.
My wife's 401K is with Fidelity. She doesn't manage it, I do. I find it quite confusing. I finally reached a point where I gave up. I split the money into several different funds and said that's it.
Privatizing SS will be the biggest boon Wall Street has ever seen and it will be an absolute disaster for those who own the account.
Of course private accounts would be required of all workers. Hmm...this from the same people who say they can't require everyone to have health insurance.
Bruce
You underscore a point I didn't focus enough attention on. I KNOW you are a very intelligent fellow. You study more than the average person and you are very well-read.
ReplyDeleteHowever, general knowledge is not the same thing as stock savvy knowledge. Understanding complex financial systems and Wall St is like trying to read hieroglyphics without any education or experience in that area.
Consequently, even highly intelligent citizens are ignorant of the in and outs of high finance. Smart folks would be better able to wade through the financial intricacies of legislation than they would be to wade through the complexities of retirement investment accounts.
I agree with Bruce. In our case, we have a financial advisor who is trustworthy, playing the role of doctor or triest int he management of our retirement. Who has time to do this on one's own, anyway. We're just making the money.
ReplyDeleteIn a somewhat separate, but similar vein, this suggests to me why "the vast majority" who have no grasp of spirituality, mysticism, metaphysics or ethics (to say nothing of epistemology or science) just turn over that part of their life --their soul if you will-- to the local iman or priest or televangelist and become "fundamentalists" who don't need to think for themselves. That sheeple thing.
IN my second sentence above, I meant "priest" of course....it's early here, my hands still a little hampered by morning stiffness.
ReplyDeleteAnd of course, it's imam...
ReplyDeletecopy editor attacks herself!