Americans lost over $1 trillion in their 401(k)s in 2008. Ouch! Evidence, says Teresa Ghilarducci, a New School for Social Research economist, that America needs to radically alter how workers save. She proposes eliminating the tax breaks for 401(k)s and replacing them with guaranteed retirement accounts. Under Ghilarducci’s plan, outlined in her book When I’m Sixty-Four: The Plot Against Pensions and the Plan to Save Them, all workers who don’t have a traditional pension would be required to contribute 2.5 percent of their income to a government account with a 2.5 percent employer match. A 3 percent return above inflation would be guaranteed by the government. U.S. News asked Ghilarducci about her controversial retirement plans.
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Archive for January, 2009
Another bailout, over 800 billion, for a mis-structured economy. While corporate executives received the sixth highest bonuses recorded, most of us lost over 20% of our 401k funds.
Hopefully President Obama’s administration will keep track of where this money is spent. The previous 350 billion was either spent for acquiring competitors or is unaccounted for.
A Good Deed ?
Jan 27
Sean Carter from Nottingham, England, saw a car spin out of control and roll over. He pulled over and dialed 999. He then helped the driver into his car till the medics arrived.
Unfortunately the medics decided that the victim should only be moved using a spinal board. So they cut open the roof of his 10 month old Ford Focus.
New Year, New Hope
Jan 22
President Obama has taken his first actions as President. Beginning with the closing of Guantanamo and withdrawal from Iraq. He even took the Oath a second time, just to be sure that he was President, after the fumble by Chief Justice Roberts.
Meanwhile the economy continues it downward slide. Unemployment higher then anytime since 1982, and housing starts at a all time low.
President Obama faces more challenges then any other President of recent times. He’s certainly off to a good start.
All Things Considered,
At Earl Stafford’s inaugural ball, the red carpet will be lined with wounded veterans, homeless people and other deserving citizens. Stafford, a military contractor, paid $1million to rent out 300 rooms at the JW Marriott Hotel in Washington, D.C. He tells host Andrea Seabrook about his party plans and what inspired him to do this.
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