Kudlow's Money Politic$


Union Hypocrisy
A few weeks ago I talked about the height of hypocrisy by public and private
labor unions. They are trying to use their muscle -- one might even call it
blackmail -- to stop President Bush's personal savings accounts.

They have threatened investment managers with a pullout of union money if those
managers support private accounts. It is blackmail. It is hypocrisy.

Public and private pension funds have roughly 60 percent of their $2 trillion of
assets invested in stocks. So, while they reap the retirement benefits of the
magic of market compounding at a near 7 percent adjusted rate, they would deny
this comfortable retirement opportunity to all the rest of us.

Here's some more hypocrisy: A recent news story reports that the pension funds
of New Jersey and New York City are investing more heavily in private equity
portfolio deals. As a free market man, I say fine. But there is even greater
risk than in stocks.

Remember, these are the folks who compare the stock market to gambling or slot
machines. Go figure. While they extend risk to feather their nest egg, they deny
the same opportunity to the rest of the population. It is the height of
hypocrisy.

Every person who sees a union ad opposing private savings accounts should
understand the hypocrisy of our nation's unions. It's more than misinformation.
It's an outrage.

from: http://www.lkmp.blogspot.com/

[Note: Spelling of 'outrage' corrected.]
--
John H

"All decisions are the result of binary thinking."