Escape to the retirement paradise of Chile with John Tierney

Guest Post by Morbo

I realize that The New York Times editorial page must hire conservatives for the sake of balance, but couldn’t the editors get someone less embarrassing than John Tierney?

Tierney is yet another of what I, in a previous post, referred to as the “strapping capitalist lads” (SCLs), rock-ribbed libertarians still salivating over the discredited “free market is god” ideas of Ayn Rand.

For three months now, Tierney has been trying to persuade readers that Chile’s privatized retirement system is superior to America’s system of Social Security. In a recent column, Tierney blasted lazy old people for having the gall to believe they have a right to retire.

“Americans now feel entitled to spend nearly a third of their adult lives in retirement,” he wrote.

Oh, really? Some simple math shows Tierney is full of it. Most people begin working between the ages of 18-22. The retirement age is now 65, but for my generation it has crept up to 67 and may hit 70. According to the Centers for Disease Control, the average U.S. lifespan is 77.2 years — somewhat longer for women and shorter for men.

So, a person can expect to work 40-50 years and perhaps enjoy 10-15 years of retirement. Some Americans may spend a third of their adult lives in retirement, but many others aren’t going to hit anywhere near that. (And let’s face it, those last few years for most of us aren’t going to be very good as organs break down and the mind starts to go.)

Tierney also lays this gem on us: “[Social Security] creates perverse incentives for people to retire when they’re still middle-aged.” I’ve got news for Tierney: 65 is not “middle-aged.” People do not live to be 130.

Ironically, the myth of Chile as a private-accounts retirement wonderland was debunked by the very paper that employs Tierney, in a story appropriately headlined “Chile’s Retirees Find Shortfall In Private Plan.”

Here’s the bottom line: Only half of Chile’s workers are covered by the private system because so many people there work under the table. Of those who are covered, many got shafted by the private plan. Many workers who invested in it now have much lower pensions than their neighbors who stayed with the government-run system. Observed The Times:

Even many middle-class workers who contributed regularly are finding that their private accounts — burdened with hidden fees that may have soaked up as much as a third of their original investment — are failing to deliver as much in benefits as they would have received if they had stayed in the old system.

Chile’s privatization plan was put in place under the reign of Gen. Augusto Pinochet, a cruel dictator, who, when he wasn’t engineering the assassinations and torturing of his perceived leftist enemies, enjoyed experimenting with the free market. He tried privatizing education, too. That was also a bust.

I’m not saying every idea cooked up by a right-wing scumbag dictator is bad, but most of them should be greeted with a healthy dose of skepticism. Things in Chile got so bad that people began speaking of suffering from “pension damage.” Those suffering from the syndrome formed an association. The group’s president, Yasmir Farina, said, “They come to us in desperation because those who stayed in the government’s system are often retiring with monthly pensions twice as large as everyone else’s.”

In the end, I suspect that what really annoys Tierney is that some people, when they get old, simply refuse to continue seeing themselves as economic units any longer. This is deeply offensive to the core SCL belief that we were created in God’s image to work, work, work and buy, buy, buy.

Tierney snidely refers to “American baby boomers dreaming of retiring to decades of golf.” As I’ve already pointed out, it’s likely to be one decade at best, and I say after 45 years of work, an American has earned the right to a little golf.

This is hard for Tierney to grasp. After all, his job consists of penning fatuous columns a few times a week and collecting big checks. Who wouldn’t want to do that for 65 years?

But not everyone is so lucky. Some people really do work for a living. My father was a house painter. He climbed ladders, chipped paint from houses and sprayed walls for more than 40 years. I never appreciated how hard he worked until the summer after my freshman year at college. I came home and made the mistake of failing to find a summer job. My dad sent me out with his crew. Too inept to handle a brush, I was given prep work — scrapping the old paint off houses under the blazing sun. I never worked so hard in my life.

When my dad retired, he did not stop painting entirely. But as he explained to me, “Now I’ll work when I want to work.” If a job looked too big, too hard or if he simply did not like the customer, he turned it down. He spent a lot of time golfing, hunting and playing poker with his buddies. He joined a bowling league and poked around at yard sales.

I realize that not all jobs are as physically taxing as my father’s. But even office work can be mentally fatiguing. In the end that’s irrelevant. I don’t care if you operate a backhoe, file papers, program computers or sell cars. If you’ve been doing it (or some combination of different jobs) for 45 years you’ve earned the right to take a break if you want. If you’d like to keep working, I’m OK with that too. All I’m saying is that people should have a choice.

Sadly, my father died of a brain tumor less than 10 years after he retired. I wish he were still here to play golf and go bowling — and not just because he was my dad and I miss him. I wish he were still doing those things because, darn it, he worked hard all of his life and earned the right to leisure. He was not just an economic unit whose highest and best reason for existence was to produce and consume for the good of the economic order.

Tierney and his fellow SCLs just don’t understand. Sometimes, I can almost feel sorry for them.

It has been proven over and over that the private account thing is a HUGE mistake in every country that has tried it. It may ( will pay off for those running it ) but everyone else is screwed.
Privatizing education…..does that sound familiar?

These people who promote this CRAP are all so damn rich it matters little to them if it doesn’t work. What they care about is themselves and their families staying RICH.

  • If I had a nickel for every journalist and columnist claiming that Americans actually want to work until they die, I’d be able to retire right now. This is another example of how disonnected those in the MSM are from contemporary American life. Not everyone is fortunate enough to make their living in a lucrative, intellectually rewarding, or prestigeous field. The new line is that extended employment will improve mental acuity for seniors. These jackasses should try spending a few weeks rotting in a call center cubicle or(God forbid)working a deep fryer and then report back on how mentally stimulating real work is.

  • Excellent post, Morbo (othes, too).

    I guess the GOP radicals will never realize that the “free market” is neither natural nor God-given. It’s true that relatively free markets are a better way to produce and exchange goods and services than “command systems” (of the Right or the Left) have proven to be throughout the last century.

    Democrats ought not to be so afraid of markets. But we should constantly emphasize that markets are never Adam Smith’s purely theoretical ones (infinite numbers of buyers and sellers, with no powerful individuals). Real ones are HUMAN creations. To function well they REQUIRE open information flows, monitoring, even regulation. And they require FREEDOM in many forms, including the freedom from prejudice (which blocks the market to many women, racial/ethnic minorities, gays, elderly), the freedom which comes with universal education and health care (beneficial to both the individual the market itself in so many ways), the freedom to work all one’s life (if one chooses) in a field that makes the most of one’s abilities and interests, freedom to retire after a lifetime of work (which, incidentally, leaves that position open to another).

    Since all that is the legacy of the 20th century Democratic Party – the Republicans can claim none of it – I can’t for the life of me understand why we let the GOP radicals or their media lapdogs get away with claiming anything about the “free market” for themselves. Ask the black household servants who waited on Papa George H.W. Bush and his siblings what they knew of the “free” “market” for their services. Ask GrandPapa Prescott Bush what the Jews, gypsies and gays in the German concentration camps (whose labor, in part, went to Hitler’s “Wall Street Banker”) what they thought of the “free” “market”.

  • I probably should have made it clear that I was talking about G.H.W. Bush’s childhood home, on a 10,000 acre hunting preserve in South Carolina where, according to his sister, “We were waited on by the most wonderful Black servants.” See, e.g., Kevin Philips’ American Dynasty or any number of online sources like Crimes of the Bush Dynasty.

  • The article is question was the one called “The Old and the Rested” published on June 14, 2005. Unfortunately you have to pay to read it now in the NYT’s online archives, but it’s worth reading. It generated thousands of angry responses (including mine) with many detailed stories debunking every contention Tierney made from the real life experiences of the writers. One writer bluntly hoped that Tierney would “die in a fire.” I don’t hold with violence but I can understand the frustration.

    I hope that article is available somewhere without charge so more people can see it. I once said in his forum that if he wasn’t working for free, he should be. I stand by that evaluation.

  • Ed,

    I would like to add that what we are experiencing today is not a free market economy, it should more correctly be called a corporate economy. All the things that you mention such as open information flows and regulation are being determined by the corporations not by the market forces.

    As a parting cheap shot has anybody ever taken a good look at Tierney’s photo in the New York Times, doesn’t he look like Regis Philbin? At least Regis has the decency to tell us that he is a clown, whereas Tierney is a clown and tries to tell everyone that he is a journalist.

  • Mark,

    I agree with you. I was suggesting that a true market, in anything like the Adam Smith sense, requires stuff which only government can supply. And I’m not just talking about infrastructure, fire-, police- and military-protection. Even Gresham’s law (that bad money, i.e., counterfeit, drives out good money) suggests the need for government to regulate the money through which market values get translated into monetary ones. And that’s just for a theoretical market, in which individuals can’t “call the shots”. All the more so in the corporate market (and its tiers of horizontal and vertical mergers, absentee ownerships, interlocking directorates, patent-holding, monopolies, lobbying, etc., etc.).

    Tierney really is wimpy-looking, isn’t he?

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