Click here if you wish to access source of this 9:21m video from an interview with Michael Hudson on the Thom Hartmann Program broadcast via RT TV. (Note: there is a brief interruption in the middle of the broadcast, but quickly resumes.)
It would be helpful in understanding Hudson's comments, to understand the difference between defined benefit and defined contribution
pension programs. As I recall, this shift began in the 1990s until now
whereby most pension plans are of the latter type. As one would expect,
this shift has been enormously popular with the One Percent who live
largely off of their ownership of corporations and speculative investments. Not only does this allow hedge fund agents and corporate executives to engage in more risky endeavors, but it also has
the advantage of encouraging more of the 99% to identify with corporate
interests.
For more information on pensions and their reckless use by hedge funds, I highly recommend perusing the Pension Pulse website where the Canadian blogger has specialized in following this issue. Although this offers a Canadian perspective, most of his analyses applies to the US. Specifically, I recommend this and this.
Unfortunately, Hudson's liberal recommendations for change consist of only reforms to the existing system which is doing what it is logically set up to do--to provide the One Percent with short-term profits and power. Over the past 300 years this system has so abundantly rewarded them that they are now hopelessly addicted to it. It is up to us to dismantle it and replace it with a sustainable system that serves everybody. We must do this or else...we will perish from the Earth.
