As I was falling off to sleep last night something popped into my head and here it is. For as long as I can remember, I’m seventy-two, the repubes have always railed about “socialism”. Their problem has never been the socialism but the attempt to have equal balance with that socialism. Going back to the wonderful Reagan years a pattern emerged. How can we encourage socialism and enrage a certain portion of the electorate while redirecting the socialism to those who need it the most? This is when it was determined that the wealthy need the most help.
What did the introduced public/private partnerships accomplish? More money for the wealthy to use and profit from. The 401K program? While it did allow a lot of people to increase their bottom line, it benefited the wealthy much more. Who handled the 401Ks?
Quick example and these numbers are not actual but paint the picture. Your employer during the Reagan years started a 401K program and got almost a one to one write off. You as the employee were also asked to contribute. So let's take that employer contribution and employee contribution and put it in the hands of an “investment firm”. Over the course of your first year you make $250 on your 401K along with the other employees at your business. The investment group charges a management fee up front and a small vigorish of 1.5% on the growth. Management fee for your group is $250/month plus the 1.5% on growth. Now multiply that by the one hundred businesses whose plans they manage. Who is actually getting rich.
You can never have a successful long term program when an additional profit taker is involved. Private education, investment, strip mall rental..they all work the same. Upfront money (rent) and a piece of the action/”the vig. More money in one person’s pocket.
Anyone remember what happened to the employer contribution side of your 401K when the tax break to the employer was clawed back as the deficit started to climb. My employer quit contributing and he was not the only one. The deficit basically doubled during the Reagan years and has just kept climbing. Especially when we had a repube for president. They love socialism and the deficit shows that.
