Pension Funds and Ponzi Schemes

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Martha Paskoff Welsh of the Century Foundation has a valuable report on Congress’ role in creating the current pension fund crisis. Here’s what it comes down to:

Congress repeatedly has passed legislation that enables corporations to underfund their pensions, overstate their profits, and postpone to another day any action that would lead them to keep their promises to employees. At the same time, Congress has passed laws making it more difficult for struggling workers and retirees to file for bankruptcy protection. The pattern is consistent: give business the breaks they need to avoid responsibilities to their employees while cracking down on households in trouble.

Is there any way out of this? Well, a few months ago Michael Hudson wrote in Harper’s that Bush’s plan to privatize Social Security can be seen as a last-ditch attempt to bail out companies that have underfunded their pensions, primarily by giving stock prices a much-needed jolt. Perhaps. My sense is that the plot to phase-out Social Security has less to do with dastardly corporate bailout schemes—see William Greider for more along these lines—and more to do with simple ideology. Conservatives hate Social Security as a program; after all, it’s the shining, popular symbol of the New Deal and the triumph of big-government liberalism, even though there’s nothing all that “big government” about Social Security (all it does is take money in and pay money out; no labyrinthine bureaucracies here.) Still, it is rather convenient that privatization just happens to help Congress and large corporations patch over the pension-fund Ponzi scheme they’ve been running all these years, isn’t it?

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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