It’s the wealth loss, stupid

Republicans have fumed over even the suggestion of blame for the economic crisis, often suggesting the economic problems are not that serious. The response to the recession is that yeah, it’s bad, but it’s been much worse before. During the Carter-Reagan recession, unemployment was much higher and the recession much deeper. There is some truth to their claim but they are also ignoring the massive loss of wealth from this crisis. As this article says, many more retired Americans (and working towards retirement) Americans are susceptible to fluctuations in the market. A few generations ago, a failing stock market was painful but it would not negatively impact Americans directly the way it does today.

Ask any middle class retired person how they’re doing and one of the first things you will hear is how much they have lost in retirement money. For them, the last thing they want to hear is about recovering those losses “in time” because the losses could take decades to recover. Americans who have tried to be cautious and stuffed away money into 401K plans are now realizing that they will have to work longer to recoup those losses. Maybe there is a plan being developed now but Obama is going to need to find a way to help Americans recover from the Wall Street gambling that has taken everyone down. This over-reliance on the stock market for retirement is going to cause significant problems and needs a fresh look. The US needs savings but also better options for retirement plans.

Stabilizing the economy is the first step, but delivering a plan for wealth creation for average Americans and not just the elite has to come soon. Very soon.


An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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