Thursday, December 16, 2004

Bush, the Neocons, and their False God, the Market

OK, I know that this doesn't affect me directly as a Canadian, but I think it's an excellent example of market dogma. The Bush administration wants to privatize social security, I think that's no secret. The insistence, on their part, is that the current system is "broken" although they never really elaborate on this point. It's just broken you see, just, just trust us, we're the government, we know these things. So of course what's the perfect solution for this non-problem? Why the market of course! Look at the diagrams here

Of course nothing bad ever happened on the market. Nope. No one ever gets burned by it. The point here is not so much that the market is evil. The point is more that it simply cannot be the solution for everything. This is especially true for the small-scale investor. Does anyone honestly think that the average worker saving for retirement will have the knowledge to invest well? Look at all the people who got burned by the dot-bombs and Enron. At best the market is a sort of casino for the small-scale investor, so get ready America, you're going to be putting your retirement on the table...