Posted on 06/22/2009 7:35:49 AM PDT by reaganaut1
Raised in an individualistic culture, Americans dislike the concept of the "welfare state" and do not use the term. But make no mistake, the United States has a welfare state, and its future is precarious. The true significance of General Motors' bankruptcy lies more with this welfare state than with the battered condition of American capitalism.
Broadly speaking, the U.S. welfare system divides into two parts -- the private, run by firms; and the public, provided by government. Both are besieged: private companies by competitive pressures; government by rising debt and taxes. GM exemplified the large corporation as private welfare state. In contracts with the United Auto Workers, GM promised high wages, lifetime employment, generous pensions and comprehensive health insurance. All this is ancient history: New workers get skimpier benefits.
As metaphor, GM's bankruptcy marks the passage of this model. Companies still provide welfare benefits to attract and retain skilled workers. But these shelters against insecurity are growing flimsier. Career jobs remain, but lifetime job guarantees -- whether formal or informal -- are gone. Last year, about 50 percent of male workers ages 50 to 54 had been with the same employer at least 10 years; in 1983, that was 62 percent.
Health insurance and pensions tell similar stories. In 2007, employer-provided insurance covered 177 million Americans, 59.3 percent of the population; in 1999, coverage was 63.9 percent. Since 1980, companies have gradually moved from "defined benefit" to "defined contribution" pensions, notably 401(k)s. Defined benefit plans provided guaranteed monthly payments; defined contribution plans -- just putting money into a pot -- make workers responsible for managing retirement savings.
What most Americans identify as government "welfare" are payments to single mothers, food stamps and (perhaps) Medicaid, the federal-state health insurance program for the poor.
(Excerpt) Read more at washingtonpost.com ...
Oh, I see...your cousin is a HYPOCRITE.
Nope. She’s just smart. Once she gets tenure, she’ll be able to come out of the closet.
We are in the final innings of the USA-bankruptcy game. Obama will ensure that result.
The next step will be a rapid loss of political freedom. Large Government and extensive Gov’t-supported interest groups fighting with the private sector for remaining wealth will mean less freedom for property and the individual. This is an iron rule, as seen in extremis in all socialist states.
This Administration and the Democrat Majority in Congress is wasting no time in dragging this great nation down the Socialist rabbit trail...and it absolutely scares me. And what's even worse is that there is NO opposition from the GOP (unless it isn't being reported, which wouldn't surprise in the least).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.