Pork Spending Gone Wild - Warning, R Rated News
Image Source: http://www.cagw.org
I awoke feeling zippy - another day, another gift of life. While I remain hugely appreciative for what I have (good health, great family and much more), I must say that watching Sunday talk shows does not inspire. Today's theme was the economy and what is being done around the world to get us back on track. Unless you've just come back from a remote island, you are all too aware that global economic conditions are anemic at best and on life support at worst. Adding hundreds of billions of dollars to our national debt is bad enough. Earmarking monies for questionable projects is beyond the pale.
Legislators everywhere - Practice what you preach. We don't care what political party you represent. We simply want to know that you are good investment stewards of our hard-earned money. If corporate executives are chastised for taking private jets with taxpayer dollars, why is it okay for you to seize our dollars for your pet project? Individuals everywhere are making tough decisions about their household finances. We don't get to print money. If it ain't there in the checking account, we make do. Why is that rocket science? Here are a few items to ponder.
- Citizens Against Government Waste reports that proposed earmarks include $2.9 million more for shrimp acqualculture research, "being done in seven states, including Arizona, where the most likely outcome is the shrimp will just fry in the sun." (See "CCAGW Calls Failed Omnibus Vote an Urgent Wake-Up Call," February 12, 2009.)
- Paul Kane of the Washington Post writes that manure management and water taxis have been given the thumbs up by the U.S. Senate. (See "Democrats Stop Effort to Remove Earmarks," March 5, 2009.)
- According to IOUSA.com, a new film documentary about the U.S. debt, three programs alone (Medicare Parts A and B, Medicare Part D and Social Security) account for an eye-popping $53 trillion in present value terms (or an added debt burden of $175,000 per person).
For plan sponsors, the state of the economy is the elephant in the room.
At the micro level, you are confronted with new challenges galore: (a) asset allocation revisions (b) whether to make up for losses by possibly doubling up on risk (c) longer lifespans and (d) new accounting and disclosure rules that give problem plans (regardless of plan design) nowhere to hide.
At the macro level, legislators are almost surely NOT going to take the blame for the inevitable fallout associated with underfunded retirement plans - lowering benefits, raising taxes or both. As the doubtful viability of Social Security and other entitlement programs becomes more apparent, plan sponsors will be handed the bill and told to "do something to help people retire in dignity."
No suprises here - This messge is R rated:
- Recession
- Regulation
- Rationing
- Retirement Postponed
- Rough Times Ahead
- Restrictions on Decision-Making Flexibility
- Ridiculous Perversion of Economic Incentives
Send an email with your favorite "R" word and/or example of wasteful spending. Let's remind the spendthrifts on both sides of the aisle that every dollar they earmark is the result of someone's gainful employment and not to be frittered away.
