A PENSION BUST

Byrnes, Nanette (2005) Rising tensions over pensions BUSINESS WEEK, 5/16, 68-71

Corporate America long ago quit putting the necessary amount of money to pay for retirement of employees. The Bush administration wants this vital sector to pay up. Big business is saying that if they are required to pay it will drive them into bankruptcy. Regardless of the outcome, retirees will only get a percentage of the money they have contracted to them.

If there should be a federal bailout, taxpayers should have to pay for it. It will be like the bail out of the savings and loan system a couple of decades ago. Although there is a move to privatize social security, this would be the reverse with the nationalization of debt for private corporations.

This is not new. Nationalization of debt follows the privatization of profit. Thus, history repeats itself.