Well, I’d just have to wonder about your humanity. Tragedies like Newtown are gut wrenching, horrifying, just about any emotional descriptor to signal dispair you can imagine. It’s simply horrible to see murders on that scale, but it is even more horrible when those murders are of children.
As adults we all live with the understanding that there is such a thing as “evil” and we, as a whole, we know we have to deal with that. We understand both the concept and the risk. What we saw on 9/11 was a manifestation of evil. Timothy McVeigh’s attack on the Federal building in Oklahoma City was also such a manifestation.
In both cases, none of the perpetrators in either mass killing used a gun.
The point, of course, is the instrument of the killing isn’t the problem, it’s just the instrument. Evil is the problem.
And no matter how many laws we pass or bans we put in place, evil will find a way to do it’s dirty murderous work. As we mentioned last night on the podcast, the number one murder weapon in the US is a baseball bat.
It’s not about the weapon, it’s about the evil person. 3,000 people were killed on 9/11 – with airplanes. 168 were killed in OKC.
One of the things we have to keep in perspective is the nature of the problem. Feel good bans aren’t going to solve a thing. Those bent on murder are going to find a way to murder and contrary to reason, many seem to feel the way to stop that is to disarm. It makes no sense, logically, and, if you need examples, just look at Europe and other countries where firearms have been banned.
It’s not about guns – it’s about people and evil. It is those seemingly obvious facts we appear to want to ignore when we talk about “banning guns”. It’s the simple, feel good “solution” that the graphic above shows is worthless, and, in fact, gives people and evil a leg up.
We need to understand that one of the fundamental rights any human being has is the right to self defense. And as much as we may hate the necessity, perhaps the way to limit the work of evil people is to not ban guns, but to arm ourselves instead.
(Inspired by Insty, of course.)
We have been saying for, oh I don’t know, forever, that when the goal of government run health care is to make it less costly and better, you can only have one of the two. They are naturally conflicting goals. And anyone who thinks government can make anything less costly or better isn’t a student of history. Finally, whether anyone likes to admit it or not, “less costly” means rationing. Period.
The latest example of the point is our usual whipping boy – the UK’s National Health Service. Seems it wants it’s pregnant patients to take one for the state:
Family doctors are being told to try to talk women out of having Caesareans and very strong painkillers during birth to save the NHS money.
New guidelines drawn up for GPs urge them to encourage women to have natural labours with as little medical help as possible.
But for many women the prospect of giving birth without the painkillers is unthinkable.
And critics have said the move has been made without any thought for the women themselves.
The guidelines also remind doctors to tell women to consider having their babies outside hospital in midwife-run units or in their own homes.
Of course the “move” is being made “without any thought for the women themselves”. The job of bureaucrats isn’t to please patients. It is to “save money”. So guess where the priority and focus shift. Not to those they’re ostensibly serving, but instead to numbers.
The result? Well given the last sentence, a move back to the 19th century.
If there is anything “natural” it is the inevitability of this outcome given the goals of the system. It isn’t about patient care. It is about “saving money”. Result? Well right now its a suggestion. At some point, it may move beyond that. Ignore the advice, however, and it may become more than a suggestion.
Of course, by handing over your health care to unaccountable nameless and faceless bureaucrats, that should have been expected, huh?
Interest rates on bonds, CDs and money market accounts — staples of the retirement crowd’s portfolio — are at historic lows. (I’m always shocked to see what banks are touting. Really? 0.35% — that is, 35/100 of a percent — on a money market? 0.90% on a CD? Yep.) Stocks are nothing to write home about, still well below their highs of five years ago. As for those real estate investments? Forget about it.
The squeeze is real. Some years ago, when earning say 5% on your money was realistic, a $360,000 portfolio of CDs would produce $18,000 a year in interest — that’s $1500 a month. Couple that with an unexceptionalSocial Security payment of about the same amount, and that’s $36,000 a year, $3,000 a month. Nothing fancy, but enough to get by.
Now change that 5% to 0.9% and you’re earning $3,240 per year, or about $270 a month. Add that to $1,500 a month in Social Security and you’ve got $1,770 a month to live on; just $21,240 a year. That’s a brutal 41% cut in income. And it is why many senior citizens around the country are being forced to draw down savings to make ends meet.
Now, you’re saying, well yeah, got it but is that the President’s fault? In a political system that considers all things that happen under a president’s watch to be “his”, yes. If president’s are going to claim responsibility for good occurrences, then they also get the responsibility for the bad things as well. And if I remember correctly, the current president promised to fix all this stuff. But, this is reality:
The Federal Reserve’s low interest rates are a boon to overextended banks and to the borrowers who owe them money. (As well as the world’s greatest debtor, the U.S. Treasury). But these benefits come at the expense of savers — both those who hope to see their savings grow enough that they can retire someday, and those who have already retired expecting to live on interest at rates far higher than those that prevail today. The low rates are, basically, a tax on savers for the benefit of borrowers and those who made bad loans.
Couple that with the spendthrift ways of the past few years, with little to show for it, and you sort of have the perfect political storm don’t you.
The point about the seniors is their retirement income has been materially effected. That’s totally real to them – they live with it daily. And, frankly, they’re going to blame someone. 4 years ago they probably blamed Bush. But now, well now they’re going to blame the guy who has had ample time, in their estimation, to do something about this … and hasn’t.
And who is the guy on the hook? Right or wrong it’s the prez.
As if what is described above isn’t bad enough, there’s more:
For senior citizens, it’s a double squeeze. While incomes for retirees are going down, costs are going up. Gasoline is now roughly double what it was whenPresident Obama took office and, in many places, it’s back up in the neighborhood of $4 a gallon.
According to the Bureau of Labor Statistics, ground beef recently hit a national average of more than $3 a pound, the first time in history it’s reached that level. (When Obama was inaugurated, it was $2.35). Anyone who has spent time in a grocery store knows that this sort of thing is happening on every aisle — coupled with “shrinkage,” as manufacturers reduce the amount of product in a box while keeping the price the same, a way of hiding price increases from (they hope) inattentive consumers. And it’s going to get worse, according to the Department of Agriculture, when this summer’s drought hits food prices in a few months.
Heard anything about all of this? Yeah, me neither. Glenn Reynolds hasn’t either and he’s pretty sure he knows why:
In fact, with this double squeeze, we have the makings of a major national crisis. There’s only one thing missing: the kind of news media attention you’d usually get with this many senior citizens suffering in an election year.
I’ve been watching these developments for a while, and by now you’d expect a lot of sad news coverage about old people who diligently saved for retirement being squeezed by high prices and federal policies, being forced to choose between medicine and food or having to let go of pets and move in with children because things have just gotten too expensive, living on cat food and the like. But actually, we’re not hearing much.
And we all know why? When the 4th Estate becomes a 5th Column, you’re unlikely to hear much about the things that might reflect on their chosen one.
Report it or not, it remains a real problem and those suffering from this turn around are likely to want to point the finger at someone. And usually that someone is whoever is in charge on election day.
9 years ago today, QandO was launched on the Blogger platform. Jon Henke started it up by putting up a two or three line post about “first post” jitters. Since then we’ve migrated to many different platforms, literally thousands of posts have been written, over 60,000 comments have been made and over 8 million have viewed QandO’s pages.
This blog has been a labor of love for all those associated with it. By far not the biggest of the blogs out there, it is one of the older ones (think dog years as a metaphor for blog years). We started back when there were just hundreds of us. Now, there are literally millions of blogs.
Thanks from the QandO gang to all our loyal readers and commenters. You’re the incentive that keeps us writing.
Obama: "I’m prepared to make a whole range of compromises" Me: “As long as you let him define what a compromise is”
Among the various annoying sophistries of the left, their attempt to re-define the term “compromise” is high on my list.
If I’m sitting in Nashville on I-40 and I want to go to Memphis, and I’m trying to share transportation with someone who wants to go to Knoxville, there isn’t much room for compromise. Standing still is a better choice than any option that takes me further from my goal.
But the left don’t want us to look at it that way. They insist on setting a ground rule that some sort of movement in their direction is a sine qua non.
Oh, sure, they’ll alter non-essential details. “Well, if you insist, we can take Highway 70 instead of I-40. That’s a real sacrifice on our part, because it’s a scenic route and a lot slower. But, in the spirit of compromise, we’ll do that. Now, why won’t you go along with that? You’re just inflexible. Don’t you see we need to compromise and come to an agreement here? We have to do something!”
It does no good to point out that the exact highway doesn’t matter – it’s the goal I don’t agree with. And that doing nothing is preferred to taking even one more step in their preferred direction.
This is the spirit with which Obama claims he’s willing to compromise in an interview with the AP (which I saw via Ace of Spades). After spending most of his time bashing Romney for his “extreme” views, Obama came out with his faux-reasonable, “why can’t we all get along” schtick:
If Republicans are willing, Obama said, "I’m prepared to make a whole range of compromises" that could even rankle his own party. But he did not get specific.
I’ll bet he didn’t get specific. If he had, the entire fiction would have been exposed. And any “rankling” we see in his own party would just be the usual moaning that we’re not growing government fast enough.
Because what he means is that he wants the other side to give him more collectivist stuff, with perhaps a few meaningless changes to let GOP congressmen save face. He most certainly does not mean that he’s willing to cut government in any shape, form, or fashion.
I must note, for the umpteenth time, that Obama does not think he’s lying when he says such things. The headline at Ace of Spades is “Obama Tells Another Whopper”. Most commentators on the right feel the same way, but I don’t. I think it’s important to understand what’s going on in the minds of those on the left when they trot out their preposterous untruths.
Here’s an example I’ve discussed before – Harry Reid attempting to redefine the word “voluntary”. If you’ve never seen that video, you really should take four minutes and watch it – it’s eye opening. If you’re new to QandO and never heard me go off about the post-modernist stance involved, read the comments.
That video was just a particularly egregious example of the post-modern debate tactics of the left. They really do believe that they can simply redefine a word to suit their argument. All they have to do then is to get enough people to go along with their new definition, and it becomes the “valid” definition.
One of their earliest triumphs in this space was co-opting the very term “liberal”. That case shows the pattern. They take a word that has positive connotations and redefine it to suit their partisan purposes. They do it through repetition via their mainstream media arm plus an occasional dose of shouting down the opposition.
“Compromise” has almost reached this state. They want it redefined to mean “giving collectivists at least part of what they want”. But they want to preserve the connotation that compromise is a good thing.
For the current crew in charge of the Democratic Party, plus their media comrades, “compromise” never means taking something away from collectivists or reducing the size and scope of government. Anything of that nature is immediately branded “extreme”. And, of course, you just can’t reason with extremists, so the implication is that they don’t need to be a part of the political process.
That’s how they are trying to tag Mitt Romney right now.
"I can’t speak to Governor Romney’s motivations," Obama said. "What I can say is that he has signed up for positions, extreme positions, that are very consistent with positions that a number of House Republicans have taken.
That’s laughable! Mitt Romney, an extremist? He’s the very archetype of an establishment, go-along-get-along Republican. He proved it in Massachusetts.
But it doesn’t matter whether he’s really extreme. The word has the connotation they want, so they use it incorrectly to promote their point of view, without a shred of shame or guilt, because they don’t think doing that is wrong.
To see additional recent examples of this insistence on the left to own definitions and set the terms of the debate in their favor, let’s look at some bilge from Nancy Pelosi and Tom Friedman.
First, here’s Pelosi in USA Today.
Though we never compromised principles, we did seek common ground to achieve results. From the start, we acted to strengthen workers by increasing the minimum wage for the first time in more than a decade. We worked with President Bush to jump-start our economy with recovery rebates for 130 million American families, even though Democrats preferred including investments to create jobs rebuilding our crumbling roads and bridges.
To promote the industries of the future and safeguard national security, we enacted the comprehensive Energy Independence and Security Act, raising fuel-efficiency standards for the first time in 32 years, investing in renewables and biofuels while creating clean energy jobs. We followed up with the COMPETES Act to support high-tech jobs, extend math and science education and boost research.
What she means by “not compromising principles” is “never giving in to reducing government”. Her examples prove it. They’re all about expanding government in some way.
These are not compromises, and having some gullible Republicans vote for them doesn’t change that.
Some of those gullible Republicans have since been sent to the showers, and the GOP’s major gains in 2010 reflected the dissatisfaction of these ridiculous “compromises” and the ever-expanding scope of government that goes along with them. Voters made it pretty explicit that they wanted to go in a different direction, and finally enough Republicans got that message to stop “compromising” in a way that constantly grew government.
But of course, Nancy wants to own the terminology. For her, the stand off resulted in a “do-nothing Congress”, which she seems to regard as intolerable.
This is one of the least productive Congresses in history, reported USA TODAY — even worse than the "do-nothing Congress" President Truman lambasted in 1948.
It never occurs to Nancy or her lapdog media acolytes to notice that the GOP passed a bunch of bills that were turned down by the Democrat-majority Senate. Why didn’t Nancy and her buddies in the Senate have some responsibility for compromise? Why weren’t some of those bills made law? It would have not been a “do-nothing Congress” then. Isn’t that important, Nancy?
No, it isn’t. What’s important is that she keeps growing government. That’s the only thing that matters to today’s left. The budget doesn’t matter (over three years without one, which I thought was something Congress was required to do), and the debt doesn’t matter (the Democrats want even more stimulus). They actually demand more regulations and higher taxes.
If you oppose any of those things, Nancy and her buddies are never, ever going to compromise with you. But they will constantly bitch and moan that you won’t “compromise” with them, i.e., go along with another round of making government bigger.
We’ve been seeing that sort of “compromise” for decades now, and it’s brought us to the verge of an economic meltdown unprecedented in history. Yet the collectivists keep insisting that somehow, some way, one more round of “compromise” that gives them most of what they want will do the trick and make things work out better.
To see Nancy’s support in the chin-pulling media, last week’s Tom Friedman column is a great example.
And even if Ryan’s entry does spark a meaningful debate about one of the great issues facing America — the nexus of debt, taxes and entitlements — there is little sign that we’ll seriously debate our other three major challenges: how to generate growth and upgrade the skills of every American in an age when the merger of globalization and the information technology revolution means every good job requires more education; how to meet our energy and climate challenges; and how to create an immigration policy that will treat those who are here illegally humanely, while opening America to the world’s most talented immigrants, whom we need to remain the world’s most innovative economy
But what’s even more troubling is that we need more than debates. That’s all we’ve been having. We need deals on all four issues as soon as this election is over, and I just don’t see that happening unless “conservatives” retake the Republican Party from the “radicals” — that is, the Tea Party base. America today desperately needs a serious, thoughtful, credible 21st-century “conservative” opposition to President Obama, and we don’t have that, even though the voices are out there.
This is the same sort of nonsense as that from Pelosi, under a different cover.
Friedman attempts to sound fair by admitting that we’re about to go off the cliff from entitlements and debt, and magnanimously agrees that we have to “do something”. Naturally, he ducks any mention of his preferred solution, and I don’t even have to know the details, because it is certain to mean higher taxes and more government. What else would we expect from someone who admires the authoritarians in China? (I notice that he doesn’t seem eager to notice their recent economic problems, and perhaps revisit his “analysis”, does he?)
But after that pro forma acknowledgment that serious problems must be solved, he veers off into how we absolutely must handle three other areas. It’s equally obvious that, as far as Friedman is concerned, more government is the preferred outcome.
Why else would these debates be so essential as soon as there’s a new Congress? What he’s suggesting is federal intervention to “upgrade skills” and “meet energy and climate challenges”. Naturally, he doesn’t bother to tell us precisely what government can do in these areas. He doesn’t really care much, as long as government gets more control.
Then he starts in on one area that is definitely the purview of the federal government: immigration. But he’s not for enforcing laws or any similar silly conservative notions. No, to him one of the top four critical issues that absolutely must be dealt with is how to treat illegal immigrants humanely. The fact that they chose to come here and can leave whenever they don’t like the way they’re treated never seems to enter his mind, nor does he support the claims of inhumane treatment. He just wants to again generate the urgency to “do something” because he expects the “something” that is reached via “compromise” to be within shouting distance of his preferred policy.
But he’s just setting the stage for his real lament:
We need deals on all four issues as soon as this election is over, and I just don’t see that happening unless “conservatives” retake the Republican Party from the “radicals” — that is, the Tea Party base.
See the rhetorical sleight of hand? Anyone who disagrees with his positions is automatically “radical”. Those who would “make a deal” with his side are the true conservatives.
This is just another example of wanting to own the terminology. Friedman thinks it’s completely appropriate for the left to dictate how political terms are used, even in describing their opponents. He want’s to redefine “conservative” to mean “someone who isn’t quite as collectivist as me, but is still willing to go along with the collectivist programs of the Democrats after some token opposition”. That is, he wants all respectable political labels to be flavors of collectivism.
He wants to redefine the Democrats like Pelosi too. I think it’s completely reasonable to say that she’s the most collectivist, far left Speaker of the House we’ve ever had, and her district is ideologically as collectivist as any in the nature. Obama is pretty much in the same territory, as his background and priorities during office have proven.
But to Friedman, they’re just “center left”:
We are not going to make any progress on our biggest problems without a compromise between the center-right and center-left. … Over the course of his presidency, Obama has proposed center-left solutions to all four of these challenges.
Again, the “compromise” he has in mind grows government. His “center-left” (which by historical standards is way, way to the left) would never, ever agree to anything else.
He concludes with
As things stand now, though, there is little hope this campaign will give the winner any basis for governing.
Sure, Tom, but whose fault is that? You want to claim it’s the fault of the right, because of course your vaunted collectivists are never at fault for anything that goes wrong, either here or in China. But why can’t your guys suck it up and compromise this time around?
The collectivist left has gotten their “compromises” from the GOP that led the way to bigger, more expensive, more debt-laden, and more intrusive government for decades. Isn’t it time for the compromise to go the other way for a while? Given the trouble we’re in, isn’t it time for the “center-left” to compromise for a while in the direction of less government?
No, of course not. For the likes of Obama, Pelosi, and Friedman, the day of admitting that their political opponents might have a point about big government will never come. They will never truly compromise with anyone who believes in limited government. They will only “compromise” – which means to keep growing government with the collusion of the establishment GOP.
I’m not the only one noticing this trend of redefining the terms instead of actually debating anything. Here’s James Taranto talking about the same thing:
Note carefully what is being asserted here. It’s not just that Democratic ideas are morally superior to Republican ones or that Barack Obama is a better president, or a better man, than Mitt Romney or would be, or is. Rather, the claim is that whereas billionaires who support Romney are greedy and selfish, those who back Obama are altruistic–or, to the extent they have a selfish motive, it is a relatively benign one, a simple desire to be in the presence of the Dear Leader.
It’s a leftist cliché that money corrupts politics. These leftists, however, believe that their politics somehow purifies money–that writing a check to Obama for America is an act of moral money-laundering.
Leftists have tried to own the terminology of politics as long as I remember. But notice, all these examples are within the last few days.
This is another sign to me that the Democrats are starting to feel desperation. They don’t have anything positive to talk about. They have no original or constructive ideas to offer the electorate. They have fallen back to spending almost all their time attempting to define the opposition as an intolerable alternative. They think that will let them win without a program, because they think they can simply define themselves as the only reasonable choice.
I do not think that’s going to work. But the collectivist Democrats will probably keep enough power in Congress to stymie any attempts by Republicans to do anything that reduces government in any substantial way.
If the Democrats lose the presidency (as I think likely) and the Senate (as I think possible), somehow I bet the collectivist left will suddenly lost their fervor for compromise. The filibuster will become an essential tool of democracy. A “do-nothing Congress” will quickly become a badge of honor instead of an insult.
But, when you’re a post-modernist, you never worry about consistency or hypocrisy. You just redefine your terms.
his will be a light week for economic statistics, with the only releases of importance being home sales on Wednesday and Thursday for existing and new homes respectively, and Friday’s Durable Goods Orders release. The remainder of this weeks releases are the regular weekly numbers.
For today, there is only one release. The Chicago Fed National Activity Index rose slightly to -0.13 from last month’s -0.15, thought the negative number indicates the economy is still below trend. This is the fifth consecutive negative number, and the 3-month moving average fell slightly to -0.21.
Learning from nature:
Of course I’m always leery of how they’ll be used. They’re surveillance UAVs. Who do you think will use them?
I say that in the title fully understanding that in reality Howard Dean reflects how some (many?) on the liberal side of the house actually feel, or perhaps a better way of saying that is how they delude themselves into feeling. Take this for instance … Howard Dean on the Wisconsin recall election:
DEAN: First of all, we look at Wisconsin as a win. We, which is not reported in the mainstream media, we picked up a senate seat, which denies Scott Walker a majority in the senate. So we put the breaks on him at least until the next election season. Secondly, you know, I always thought the base would come around because, as they like to say in Obama-land, we’re not running against the Almighty, we’re running against the alternative. Mitt Romney is well-known among the American people, let alone progressives, as someone who mostly caters to very wealthy Americans, and doesn’t have a lot of understanding or sympathy for those who aren’t. I’m pretty sure we’re in good shape and I’m pretty sure there’s going to be a big progressive turnout.
Wow. First, the Senate win was an empty win. The legislature is not in session and with redistricting (which was done by the Republican legislature), the “new” Senator will have to again run for the seat before the legislature again meets. Forecasts say the Republicans will pick up at least one more seat at that time. So the win is a win in name only. It means nothing whatsoever until the next election.
Second … does anyone, given the turn out in Wisconsin, believe that line of crap about “progressive turnout”? And even if progressives do turn out, they’re what, 25% of the electorate tops? It isn’t the progressives who are going to re-elect Barack Obama. It is the big middle who is deserting him right now.
But, that said, I just don’t see a big progressive turnout in the cards either.
Dean, however, is going to stay on message no matter how ridiculous it sounds:
REPORTER: Are you seeing a difference in the mood here compared to previous years? Last year, there were some combative moments and this time around it seems, so far anyway—
DEAN: Again, it’s the fourth quarter. I’ve had my differences with the administration, particularly over health-care policy, but this is the fourth quarter. I always used to say when I was DNC chair we’re going to elect a Democratic president and hold their feet to the fire to make sure they behave like Democrats. In the fourth quarter, everybody’s on the same team again—we’ve got to win this game. I hesitate to think of what’s going to happen to the budget deficit, because of course the Republicans are the biggest creators of budget deficits, should Mitt Romney win and have a Republican House and a Republican Senate. We’ll get a big turnout.
Yup, that’s sort of the same message about teams that you hear on the GOP side. Everyone get onboard.
However, in the real world, it seems that the team forming on the right is much more enthusiastic (at least at this point) than the one on the left, and on the right they don’t even have an official nominee yet.
As for the budget nonsense – boilerplate crap that adheres to the discredited spin that Obama has spent less than any president in 60 years. Only progressives believe that, apparently.
REPORTER: Do you think there’s a change in the relationship between the Democratic base and labor in particular? I’ve talked to a couple activists here who say they’re a little dispirited, that they don’t know whether engaging in electoral politics is the best role for labor unions after Wisconsin.
DEAN: Well, I think the parameters have changed dramatically. The old politics is not going to work anymore. We’re not going to be able to outspend the Republicans under the circumstances of Citizens United, so I think we’re going to have to look for a different kind of politics. I think that the campaign, actually, in Wisconsin—the principal problem there was not being outspent; the principal problem there was people were tired of elections. Had they waited another three months, they might have gotten an indictment in the administration, and that would have been significant grounds to throw out a sitting governor—and I think a lot of people would think so. The most interesting thing about the Wisconsin race was that about 10 percent of the electorate that voted to keep Walker, also said they would vote for Obama in the fall, which gave Obama the state. We’ll see. I’m not one of those who thought last week was a bad week for the Democrats. I actually thought last week was a good week for Democrats.
Tired of elections? That’s why record numbers turned out and resoundingly thumped the recall effort? We’ve already seen the “outspent” nonsense debunked. If your fall back to an electoral debacle is “people are tired of elections” given the turnout and result, you’re out of credible ideas and just pumping out hot air.
Dean, along with perhaps Debbie Wasserman-Shultz and David Axlerod are about the only people in America that thought last week was a “good week for Democrats”. That said, I wish them many more like it.
REPORTER: How about in the fall? Do you think that when it comes to Obama communicating with the base and doing things that will energize the base, is there anything that you’d like to see him do between now and then?
DEAN: I’d like to see him keep hammering away at Romney’s—the one thing, you’ve got to hammer at people’s beliefs. You can’t sort of convince people that, for example as the Republicans have been trying to do, that the problem with the president is that he was born in Kenya—that’s just not going to work. You don’t have to convince people that Romney only cares about rich people, because that’s what they believe already. So you just have to keep hammering that message home, that this is not a guy who understands you. And I think we’re going to win.
And I can only hope Obama takes Dean’s advice, because it will guarantee a one term presidency if he does.
I put all this up because whether Democrats like it or not, this is one of the faces of the Democratic party. And if you think he’s out to lunch, tune in to Debbie Wasserman-Shultz for a while. She makes Dean seem sane.
More whining from the baby boomers (and yes, I’m a boomer). Joe Nocera of the NYT is 60 and his 401 (k) has just failed to provide for his retirement:
The only thing I haven’t dealt with on my to-do checklist is retirement planning. The reason is simple: I’m not planning to retire. More accurately, I can’t retire. My 401(k) plan, which was supposed to take care of my retirement, is in tatters.
And Old Joe was a fan of 401 (k)s too:
Like millions of other aging baby boomers, I first began putting money into a tax-deferred retirement account a few years after they were legislated into existence in the late 1970s. The great bull market, which began in 1982, was just gearing up. As a young journalist, I couldn’t afford to invest a lot of money, but my account grew as the market rose, and the bull market gave me an inflated sense of my investing skills.
I became such an enthusiast of the new investing culture that I wrote my first book, in the mid-1990s, about what I called “the democratization of money.” It was only right, I argued, that the little guy have the same access to the markets as the wealthy. In the book, I didn’t make much of the decline of pensions. After all, we were in the middle of the tech bubble by then. What fun!
But the tech bubble knocked the poo out his tech heavy portfolio (yeah, everyone took a bit of a soaking, but much of it came back).
Here’s the part that gets me. While you can kinda, sorta, give him a pat on the back for the tech stock thing and say “aw, poor thing”, that’s not why his 401(k) is in “tatters”:
A half-dozen years later, I got divorced, cutting my 401(k) in half again. A few years after that, I bought a house that needed some costly renovations. Since my retirement account was now hopelessly inadequate for actual retirement, I reasoned that I might as well get some use out of the money while I could. So I threw another chunk of my 401(k) at the renovation. That’s where I stand today.
Or said another way – he spent most of it on things that have nothing to do with retirement while also losing half to a divorced spouse.
How is that that fault of the 401(k)?!
Of course, it’s not.
But Nocera spends the rest of his article blaming all of this on the inadequacies of 401(k)s. So what does he do … find an “expert” to buttress his obvious conclusion:
What, then, will people do when they retire? I asked Ghilarducci. “Their retirement plan is faith based,” she replied. “They have faith that it will somehow work out.”
I laughed, but it’s not funny. “The 401(k),” she concluded, “is a failed experiment. It is time to rethink it.”
Uh, no, it’s not.
It’s certainly not as failed an experiment as Social Security. And, by the way, for those for whom it is a failure, it’s a failure with their own money (and not mine or millions of other tax payers). Anyone who looks at Nocera’s explanation as to why there’s nothing in his 401(k) today knows better than to claim it’s the fault of the program or somehow a “failed experiment”.
Clue: when you make huge withdrawals to buy and renovate houses prior to your retirement, you might be gutting your retirement program – you know, the program in which you were able to save a large amount of money for after you retired that you chose to use today? And someone should also clue Mr. Nocera into the fact that his interpersonal relationships which end in divorce aren’t the fault of the 401(k) either.
But hey, in today’s world, it is hip to be a victim, isn’t it? Everyone has to have something or someone to blame for their stupid decisions in life. And Nocera provides a great example of the type. Blame the fund, not the fool making the dumb decisions.