Union boss: 401K plans too risky for workers
Plan to let workers join state pensions sparks bailout fears
- Duration 8:44
- Date May 12, 2012
Plan to let workers join state pensions sparks bailout fears
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More 01 -- are not okay it will one union leader says -- way too risky for workers.
One of her solutions letting all workers joined state run pension plans.
But let's say it's already worrying about bailing out underfunded pensions is that retirement plan way too risky for taxpayers.
-- -- what I'm Cheryl Casone welcome to cash in hand.
Our cash and a crew this week Wayne Rogers Jonathan Hoenig Tracy Byrnes and John Layfield also joining us this week Fox News contributors icons up.
What about -- -- -- all right Jonathan Bartlett -- bad state pensions gut.
Well at the state pensions that are incredibly risky Sherlund in 31 states already have schemes like this there 80% underfunded you don't think is gonna be a taxpayer bailout of course there is but in more than just risky.
This SE -- -- key officials comment is insulting.
Especially -- saying that real freedom doesn't work people are Smart enough to make money but too much too big of idiots actually know what to do with it -- -- they need.
Government to do their thinking for them.
And I tell -- as she talks about the promise of guaranteed retirement income a thing with guarantee that these state run programs.
Bankruptcy in enslaved -- it but that's the cradle to grave entitlement program the left just laws.
Right -- this is your opinion -- right.
Now because you can pretty much guarantee you're not gonna have any money at retirement if you like your state to invest your retirement funds.
Look we see what's happening with so security -- government in charge of anything and it to see customer are easily disappear into space.
Or go -- seven dollar -- somewhere at some conference somewhere.
We've -- top that was three years on the show stage can manage money properly why would I want my retirement money with them.
All right -- if you look at pension plans and has been a lot of bail out a pension plans before the house -- tonight by pension plans.
Haven't taken over by the government -- -- really the best way to go well I mean look.
What what this SC -- -- official as saying in essence is that we've taken retirement security.
Which is -- way we prevent -- senior citizens from being pour.
-- quibble the fact that -- security is done a darn good job of keeping you from being pour in our country when they're older.
So it worked in that sense -- And saying that look instead of the saying let's give all that money the people of saved for retirement and giving it to the banks so that they can turn a profit.
And if the banks fail then people lose their retirement instead saying let's have professional money managers to manage that -- it's been a good idea and it's a good idea for people -- to have -- owner clay Rogers.
What I mean they don't back in the day this is what she did this Wimbledon you had your pension plan your savings will also security money but that doesn't seem to financially work.
Any more way.
Well so heights have been a love Sally -- that remark about them.
Banks that from professional money and people are gonna build the same people that are running the state pension plans -- if I -- this like they they can't even pass a budget much less meet one.
They -- the government is as a historical.
I mean you that you have to ignore all of this the statistics in the world to say that that's a better idea.
Of course it didn't run a terrible -- don't know they don't think they're they're pretty big government doesn't run anything well we got more states and more municipalities.
Bankrupt today and and all -- underfunded pension plans and.
Individuals should be have the right whether they make that decision wrong are not put their own -- -- if they like doubt that this is if you have the freedom to make that decision it's your money into and other players.
Right -- like help.
Good Social Security has eradicated elderly poverty that is absolutely true but the problem is -- the nineteen late 1960s Lyndon Johnson and his congress said quote.
They're so much money there we will never spend it so they wrote assorted writing values it is now bankrupt the reason that eradicate poverty in the elderly -- -- because it has become a Ponzi scheme is -- pay as you go skiing.
The -- this pull up pensions right now.
They are not being funded.
Period right you have politicians you're saying we can fund these pages are we can spend more money getting reelected.
They are stealing this money out of municipal pensions and that is the problem here that is going all bankrupt.
Instead Donovan made a point earlier you know what's gonna then we're gonna come back to the federal government for a bailout so -- -- -- be yelling out and Mario announced they shouldn't be yelling up and Tibetans in downtown.
All -- world are gonna come back with government for food stamps and from a higher Medicare because they don't have enough money because they've lost I mean look I did tell -- -- But you want -- schemes this is a scheme for the banking industry to say let's privatize social secure let's privatize -- is a private -- OK here's what they think you're you're talking about.
Over the Hollis I don't just that was -- you're gonna bring up your pointer Jonathan I wanna bring up the sun between sixth 2010 were beaten up on Portland case here.
The average account balance.
401 -- do work.
Right at Borland days given the investor this -- your thing I know given people a choice what to do with their money and the revenue.
-- don't work Cheryl it's not borrowing K it's individual freedom economic freedom works and I mean I have to just shake my head it's -- look like.
-- believes that -- Smart enough to know where to vote for the too much of an idiot to know that you don't wanna take a -- here your word about Johnny on -- place.
But you're -- think people.
Yet but you're basically think that people can't make their own decisions about their own money thank you don't like she got the choice if they want to say this is about choice you get your mind originally played well but I -- -- I have no let me play it collective we hit and -- -- away where there's a professional money manager.
You're for closing choice.
-- -- -- I forget all the way I -- I -- the government.
-- -- -- the fact that -- though the same money -- managers it's great to say all organize this for the evil banks there's nothing 00.
Lead and what did you.
I think -- -- these are the same money -- the same fun at the same everything it's whether it is funded -- -- this penalties which it is not being done.
-- -- the person has the right gathered enough stuff.
Well I can't wait Rogers Waverly could do you I mean again this is Thomas coming out of some of the runs -- union in California fair enough.
But at the same time the concern here is that if you look -- private workers on to these state run pensions.
Think -- can -- as an economic disaster -- gonna have a taxpayer disaster on your hands and that's possible.
Well of course it's possible as -- possible it's already been proven to be highly -- -- you know that the game.
You have to understand that this comes from a tax deferment we put money into -- retirement plan that money earns money on a tax deferred basis when.
You realize that is when you get out of that plan you have to pay the tax on that that that's where everybody is subject of that but if you can't turn it over to the state.
And let them invested is bids did -- just happened since it is a big isn't it -- -- don't have people who don't get.
They wanted to prove that -- felt it in the next step is exactly what happened in Argentina in 2000.
Only government takes over the pension plans -- to protect the workers now the national I think companies that's the slippery I -- Know that I just have -- -- felt that we do have a we do you have as you have ideas have possibilities here.
But at the same time are we going to be Argentina -- spot -- just pointed out.
Well we're looking have falling off a cliff at some point look according to Obama's budget -- President Obama according to governor Romney's budget -- -- but we're looking at twenty trillion dollars in -- in debt.
By the year 20/20 if it interest rates go to 56%.
With -- half of our budget right now paying interest rates yet.
The answer is we're going to fall but will live at some what what we're doing is unsustainable and -- municipalities are not funding these pensions so ten years from now -- workers get done working.
There's not going to be money there forum period that matter where you visit there and not putting the money.
This -- I hate this notion that we're too dumb to do this ourselves well.
My parent it's my responsibility -- to be saving right or not you not the government that -- no value don't.
I think a little bit more probably talk about teaching people to manage their own money as opposed to relying on the -- that we know that can't do it's out -- on a.
You wanna give you the last word here this is about free choice at the end it Tuesday are people not Smart enough to make their own that's not the issue they're also Smart enough to be able to say look we have a lot going on analog and we'd like to have a professional money manager looks -- -- together and -- just sucking back a excuse me just because something doesn't work in the second worst recession -- -- sister doesn't mean it doesn't work.
And millions of Americans are grateful for their pensions public sector and private sector that provided them a guaranteed retirement security as opposed to saying at.
Here is your on your own that's what we're gonna say to millions of teen years it hasn't worked -- keep going that's -- we can't is reject and.