Wall Street Takes Workers’ Retirement Money and Uses It Against Them
Workers’ retirement savings aren’t usually thought of as a stimulating topic. But we should pay closer attention, because public pensions are a key way for Wall Street to steal wealth from workers and hoard it for themselves.
The relationship between the finance industry and public pensions has become one of this gilded era’s biggest schemes to redistribute wealth from workers to Wall Street.
As the private equity industry launches ads to protect its lucrative tax preferences, we should remember that this industry is the unseen man behind the curtain driving many social ills — from high hospital prices to surprise medical bills to nursing home deaths to media layoffs to a housing crisis that has become a human rights emergency. A Businessweek cover put it best: You live in private equity’s world, even if you don’t know it.
But a series of new reports remind us that there is another person behind the monocled, mustache-twirling oligarch running the Emerald City’s secret control panel — and that person isn’t a billionaire. It is the faceless pension official in a state capital or city hall who is using workers’ retirement savings to finance the Wall Street takeover of Oz.
In the process, teachers, firefighters, sanitation workers, and other government employees are being fleeced. Their retirement savings are being skimmed by finance industry executives, who are using the cash to lobby for self-enriching tax breaks while waging a class war on everyone else. All that money could end up bankrolling a new round of housing profiteering and infrastructure privatization, using workers’ money to wage a war on workers themselves.
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