The reason AP distorted the facts about teacher retirement plans as much as they did is because of audience share, which determines how much a media source [TV, newspapers, hate talk shows, magazines, Blogs, etc] may charge to advertisers, and balancing the news and telling the truth often does not achieve this goal, because profits are the foundation of the private sector media.
It’s a simple formula: if you don’t make a profit you go out of business and everyone working for you loses his or her job so almost everyone plays the same Yellow/Hate Journalism game, and then there is the politics of money.
To understand why Thompson wrote such a misleading news piece, it helps to understand the trend away from private-sector pensions that were once similar to current public sector-pensions and the answers are in the numbers.
Due to the politics of money, beginning early in the 1980s, during the Reagan era, there was a rapid shift away from private sector employer-based defined benefit pension plans to employee-controlled personal retirement accounts.
teacher pensions explained
Under President Reagan [1981 – 1989] this trend in the private sector was helped along by the Republican Party that controlled the Senate from 1981 to 1987 giving President Reagan the leverage he needed to shift private sector pension money to the stock market and other risky investments—another part of the Reagan plan besides adding two trillion dollars to the national debt by cutting taxes on the wealthy; raising them on the working class by cutting deductions and spending more.
And since 1982 and Ronald Reagan’s infamous trickle down economic reform, profit expectations of American corporations have skyrocketed, and right behind have been the costs of health care, the cost of housing, the cost of military programs, the cost of banking, and the cost of many other products and services.” – The Agonist
In 1980, approximately 92 percent of private retirement saving contributions went to employer-based plans; 64 percent of these contributions were to defined benefit pension plans [similar to the public pension plans of today].
Then by 1999, [thanks to President Reagan and the Republican majority in the Senate while he was president] about 88 percent of private sector contributions were switched to defined contribution plans, the vast majority of personal retirement accounts being set up as 401(k)s and Individual Retirement Accounts (IRA), and that ended in disaster.
I suggest your either Google the failure of 401 (K) or read what PBS.org said, “Most people don’t know that the 401(k) products are toxic and their behavior toward a 401(k) product is toxic because no one has been responsible for providing a safe product.
“The Congress has not put itself [out] as a responsible actor. Employers were told, “It’s up to your employees to choose,” and the banking industry and the mutual fund industry said, “Trust us.”
If you are a regular fan of hate media and trust no other source, you will probably dismiss anything from PBS. But what about CNBC.com, Forbes.com, NBC News.com, USA Today, or even the Los Angeles Times. Will you trust one of those sources over your favorite hate radio show? If not, then I suggest you read this from Mother Jones.com to discover who is behind the lies designed to fool and why.
Lloyd Lofthouse is a former U.S. Marine and Vietnam Veteran,
who taught in the public schools for thirty years (1975 – 2005).
Lofthouse’s first novel was the award winning historical fiction My Splendid Concubine [3rd edition]. His second novel was the award winning thriller Running with the Enemy. His short story A Night at the “Well of Purity” was named a finalist of the 2007 Chicago Literary Awards. His wife is Anchee Min, the international, best-selling, award winning author of Red Azalea, a New York Times Notable Book of the Year (1992).
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