Andy Stern’s Warped View

Andy Stern is living in a world of delusion.  According to the soon-to-be retiring union boss and President Obama confidant, forced unionism “is the greatest middle-class, job-creating mechanism that we have ever had in America that doesn’t cost tax payers a dime.”

Is he kidding?  From Project Labor Agreement kickback schemes to bailouts of mismanaged union pension funds, Big Labor has become a drain on taxpayers.  Who was it that was rallying in front of the capitol building in Illinois this week chanting for higher tax rates for government union member raises?  Public workers union bosses are bankrupting the country.  Mr. Stern, who do you think pays their salaries and benefits packages?

Boss Stern and the SEIU Want Your 401K

MoneyNews.com looks at the SEIU’s campaign to “centralize” all retirement plans, including your own 401K, under a new “retirement system”:

The SEIU, which was integral to the election of Barack Obama as president, is working with the left-leaning Economic Policy Institute (EPI), and the National Committee to Preserve Social Security and Medicare, on SEIU’s plan, called “the Retirement USA Initiative.”

Claiming that the retirement system in place now has “failed most Americans,” EPI vice president Ross Eisenbrey, told a labor union publication that “account balances have fallen by a third since late 2007, leaving many older workers unable to retire just as our economy is shedding millions of jobs.”

“The failure is broad and deep. It’s not just a few people falling through the cracks: most of us already are in the ravine. Three in 10 have only a 401(k) or similar savings plan, and the rest of us are totally out of luck,” said Eisenbrey.

Eisenbrey said that the median 401(k) account balance was $25,000 in 2006, and the median for workers near retirement was $40,000.

“Half of those who had a 401(k) were nearing retirement with less than $40,000 in their account,” said Eisenbrey, who is trained as a lawyer and was a Clinton administration appointee from 1999 through 2001.

The proposed retirement system would be operated under the following parameters:

• Benefits that move with you, even if you change jobs

• Payouts only at retirement

• Shared responsibility among employers, the government and employees

• Pooled assets, controlled by professional investment managers

“The financial crisis and the economic recession have shone a spotlight on the inadequacies of today’s system,” said Stephen Albrecht, director of benefits for SEIU.

With the uncertainty in today’s global economy, creating a whole new federal entitlement for American workers may not be easy to accomplish for these groups or their allies on Capitol Hill and in the Obama administration, as America’s creditors are already getting nervous.

Chinese Premier Wen Jinbao is telling U.S. policymakers that he is concerned about the “safety” of his country’s already huge holdings of U.S. debt.

“We have lent a huge amount of money to the United States,” said Wen, according to a report in the Financial Times. “We are concerned about the safety of our assets. To be honest, I am a little worried. I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”

More on the Deficit Commission

Michele Malkin speaks truth to power by taking on President Obama’s appointment of big spending proponent SEIU union boss Andy Stern to his White House deficit reduction commission.