Former Clinton-Obama economic adviser Gene Sperling, who brought you such populist hits as the repeal of Glass-Steagall and the Sequester, has now written an op-ed in the New York Times, purporting to give advice to the struggling masses in this Age of Inequality:
Share Our Wealth! Invest in 401(k)s!We'll do all the paperwork!
Sperling, a former Goldman Sachs consultant who allegedly left the Obama administration this spring, is now affiliated with the Milken Institute, a think tank in Santa Monica, California. You may remember founder Michael Milken as the "junk bond king" who went to prison in the 90s, back when prosecutors actually prosecuted crooked financiers. Milken has since recouped his billions and has gained respectability in Democratic centrist circles as a political fund-raiser, fixer and philanthropist. And why not? The Age of Inequality is also the Age of Legalized Corruption. Banksters don't go to jail. They simply make deals with prosecutors to stay out of jail and continue victimizing the working stiffs of America.
But I digress. In his Times op-ed, Sperling cynically and ham-handedly bemoans the fact that poor people get less return on their savings than rich people. So what they should do is, hand over all their loose change to Wall Street. He doesn't actually come right out and call for privatizing Social Security, of course, but that's what he's ultimately suggesting within his double-talking verbiage:
A government-funded universal 401(k) would give lower- and moderate-income Americans a dollar-for-dollar matching credit for up to $4,000 saved annually per household. Upper-middle-class Americans could get at least a 60 percent match — doubling the incentive they get today. The match would be open to workers even if their employers were already matching, which would encourage employers to keep contributing to savings. The match would also be available through I.R.A. contributions for those who were self-employed or who wanted to keep saving even while they were temporarily not working.
This proposal is very similar, if not identical to, President Obama's own cynical "MyRA" scam that he rolled out to thundering silence at his State of the Union address this year. So it appears that the name is being changed to protect the malevolent. Sperling lumbers on for awhile before finally cutting to the chase:Employers would have to provide automatic payroll deductions for their employees (while allowing those who still wanted to opt out to do so). Setting the default at “opting in” would ensure that workers did not miss out on the match provided by a universal 401(k). The government could set requirements for low fees, transparency and safety to allow for vigorous competition in the private sector while allowing individual savers access to a version of the plan that members of Congress use for their own retirement savings.
Costs need not be a roadblock. Among many ways to do it, moderate reforms to the estate tax could allow married couples to leave up to $7 million to their heirs tax-free (instead of the current $10.7 million) while generating over $200 billion in resources over the next decade, which could be used to help tens of millions of savers build their own estates. Even if a universal 401(k) ended up costing the government more than expected, it would still increase national savings overall if the public incentives led to additional private savings.The Reagan zombie is resurrected. It's all trickle-down, all the time. Why didn't Sperling just say so in the first place? My published comment (which, in retrospect, was more polite than this charlatan deserves):
Since Gene Sperling was touting cuts to Social Security as part of a deficit reduction deal with the GOP as recently as last fall, his universal 401(K) proposal sounds suspiciously like a Wall Street gateway drug to the privatization of FDR's great social insurance program.
Given that 75% of Americans are living paycheck to paycheck and don't have any savings simply because there's no money left after they eat, heat and barely survive, this op-ed is a tad disingenuous. And that's putting it kindly.
The part about lowering the cap on the estate tax to $7 million to help the savers of the future is a dead giveaway that this advice column is not meant for the average working stiff or unemployed person -- who's lucky to have two nickels to rub together after robbing Peter to pay Paul every month.
Sperling does not explain how the $200 billion generated by estate tax reform would help anybody but the trust fund kids.
Here's a thought. How about sending a stimulus check to every man, woman and child in America to spend or save as they see fit? It would provide an immediate boost to the economy. How about raising or scrapping the cap on FICA contributions to ensure the solvency of the trust fund into perpetuity?
How about letting students borrow at the same low rates as banks? How about a guaranteed national income or living wage law?
Enough of these Very Serious and immodest proposals from economists who pretend to care about wealth inequality in an election year.Speaking of the Krugmanism "very serious people," I suspect that Sperling's op-ed is just part of the vast muffled, orchestrated cry of the wealthy who are being unfairly ignored in this election year.... because politicians don't dare talk about cutting entitlements and immiserating the poor when their own political hides also are contingent upon pretending to care for the voters. The sadism has to be euphemized. Or in this case, Sperlingized. They won't rob you with a six-gun. They'll do it under cover of darkness.... with a Fulgor Nocturnis.
Sperling was among the plutocratic culprits sounding the false alarm over the debt and deficit crisis, debunked soundly in Paul Krugman's last column. So they have to come up with ever newer ways of saying the exact same thing. The latest way is smarmy concern-trolling as a means of stealing from the public and getting even more for themselves.
As I wrote in my comment to the Krugman piece,
If the debt crisis is such a crock, why are we still saddled with austerity? Correction: why are we still saddled with austerity that exempts the bloated war machine, the surveillance state, and corporate welfare for the super-rich?
It's been estimated that the $398 billion wasted on the F-35 fighter alone could buy each of the 600,000 homeless Americans a $600,000 home. And the GOP is having meltdowns over a paltry $10.10 minimum wage? They'll only fix our roads if employers can delay paying into pension plans?
Deficit hysteria might currently be on "mute," but signs of its undeadness are still out there. Surviving at the White House website is a braggy blurb about the trillions already achieved in deficit reduction, but how "we" still have a ways to go toward "living within our means." Chained CPI for Social Security might be officially gone this election year, but then-Press Sec. Jay Carney assured us that it's still on the table should the GOP ever choose to join the feasting on the old, the sick, and the poor.
Paul Ryan is merely resting his hysterical voice, reclining on his elite hammock of dependency during his Ayn Rand summer reading break.
Meanwhile, even the progressive caucus's proposed "Better Off Budget" devotes $1 trillion more to deficit reduction than it does to investments over the next decade.
The austerity cult refuses to die. Could it be because the only people who care about the debt and the deficit are the fat cat plutocrats running the place?
|Sperling (left) Joins Obama At the Feast|