Monday, March 30, 2009

Automatic Enrollment

The so-called 'Economic Crisis' is driving me nuts-o. Not because I don't think it is true. Not because I'm blind and can't see all the jobs lost since the dramatic slip in the market in October 2008. People have lost jobs, people are struggling. I live in a manufacturing state. I, myself, at my own company have had to cut almost 50 jobs since October. I had to tell these folks personally to go home. But what I present to you is something more of a self inflicted problem.

For 20 years banks have given out too much credit. This is nothing new, what is new is the degree of which they did it. But, I am no economic mastermind, nor will I ever... EVER claim to be. What I have a problem with is just one problem that happened last September...

Automatic enrollment in 401k programs for all hourly employees.

Does anyone else see this?! $8 an hour employees automatically enrolling in a program they didn't choose to? or even care to get out of? or even knew it was happening? How many stocks is that? How many shares flooded the market? And, Gosh-diggity-darn-it, what happens when a country decides to to that. Shares split, then split and split, till they are worthless. Who suffers? Big companies that get the money and the lowest of the low who don't understand. So for fucks sake, tell me who is suffering now?... big companies and the lowest of the low. awesome.

So who wins a few months out from now? Well... the farm has been bet on the entire country benefiting. And yeah, it will. We'll see I guess.

But. God Damn It. Who has the power to make something like that happen? Somebody please tell me how?! Shit man.

Search Automatic Enrollment in 401k. You tell me. It was right in my face when it was happening. A handful of people looking to me for answers on why or how this happened. All I could tell them is this "Didn't you read the memo attached to your last paycheck?" There are millions of new shareholders out there and they don't even know it. All they know is that the are 20 dollars or so poorer a month. 20 bones they will never see again, but other people will. Why will other people? Well, your average lineman lives about 10-15 years less then the middle and upper class, working, smoking and drinking themselves to death.

While you are at it look at the Dow over the past 60 years. It goes straight flippin' up. Automatically pumping someones diaper budget ensures that to keep happening for the next 60.

During the election last year my dad stated that we will slip into a socialist state if republicans lose power. Without missing a beat my brother smartly replied "Dad... we already are."

Agreed. Look at your last paycheck. Where is your money going?

If every American had to physically write a check for each thing deducted out of their paycheck every month we would see a revolution. Not just a little one... But a big old "Jeffersonian" one.

"Who are you whom I so faintly hear? Who urge me ever on? What voice is this that speaks within me... guides me towards the best? We shall make a new start. A fresh beginning. Here the blessings of the earth are bestowed upon all. None need grow poor. Here there is good ground for all, and no cost but one's labor. We shall build a true common wealth, hard work and self reliance our virtues. We shall have no landlords to reack us with high rents or extort the fruit of our labor." - Captain John Smith


mwood said...

you lost me during the connection of the last election and automatic enrollment. when did this automatic enrollment begin?
and i'm not so sure we're in socialism. and i don't think its a Party problem.
seems to me that capitalism went haywire and unchecked and needs a good sit-me-down.

Larry W Johnson II said...

nah, not a party problem. i think we have the best person in place on that front. automatic enrollment happened in last september as an option for employers. if the employer signed on it made 401k programs an 'opt out' program instead of an 'opt in' at low risk for all current employees not already participating. most non-union employers have no retirement program in place. hrly employees now automatically participate in it unless they opt out of it. something i thought at the time was very strange.

obama is giving the country a good sit me down. i'm with him on it.

bleeno said...

that is some tricky financial department shit.

in other news,
i bought Civilization Revolutions the other day.
hot damn!