Re: Wage stability and inequality: I went and looked at a couple of papers from the Social Security studies. They seem to be focused on wages and salary earned as reported on W2s, which makes sense because that is what Scoial Security FICA taxes are based on. However, the inequality with CEOs and others is not because their salaries are bigger; it is because they get founder-like stock option grants as part of their compensation. Unless they make a fast grab for that money so it is "non-qualified", that wealth and income never gets reported on W2s or entered into the Social Security database. https://www.forbes.com/sites/brucebrumberg/2019/01/22/tax-time-making-sense-of-form-w-2-when-you-have-stock-compensation/?sh=27b9854e2ab3
The stock option grants are now so big that dilution of shares due to them is one of the key reasons for companies to do stock buybacks (instead of paying cash dividends). https://www.investopedia.com/articles/02/041702.asp
"If you are managing public pension money, this all gets a little more dicey. The so-called woke investment backlash was inevitable. When you take taxpayer money (which they have to guarantee) and invest it in your favored causes, you should be subject to more scrutiny." You want a lack of scrutiny? Gaze upon all the foundations,many unknown to most of the public, that are left wing activist. Start with the Ford Foundation.
In my opinion, the biggest benefit of DB plans is that they manage the longevity risk whereas in the DC plans, the individual has to do it him/herself or hire a financial advisor to do that- a better way to do it. 401K/DC plans offer more some flexibility but with limited choices as to where the money is invested depending on the 401K plan and most plans offer an independent advisor to manage the money in which case there is better alignment with the plan and the individual's needs/goals. With a DB plan, which I was also a part for a while and I ended rolling up transferring all my balance to my IRA because I literally had no control over the investment choices and it was not tailored to my needs/goals as the big pool of portfolio is managed by portfolio managers subject to big institutional constraints where the money invested.
How do we get our leaders to do math in public instead of just pushing the same old policy solutions. Just seems like math may help us minimize reutilizing the garbage can theory
Re: Wage stability and inequality: I went and looked at a couple of papers from the Social Security studies. They seem to be focused on wages and salary earned as reported on W2s, which makes sense because that is what Scoial Security FICA taxes are based on. However, the inequality with CEOs and others is not because their salaries are bigger; it is because they get founder-like stock option grants as part of their compensation. Unless they make a fast grab for that money so it is "non-qualified", that wealth and income never gets reported on W2s or entered into the Social Security database. https://www.forbes.com/sites/brucebrumberg/2019/01/22/tax-time-making-sense-of-form-w-2-when-you-have-stock-compensation/?sh=27b9854e2ab3
The stock option grants are now so big that dilution of shares due to them is one of the key reasons for companies to do stock buybacks (instead of paying cash dividends). https://www.investopedia.com/articles/02/041702.asp
"If you are managing public pension money, this all gets a little more dicey. The so-called woke investment backlash was inevitable. When you take taxpayer money (which they have to guarantee) and invest it in your favored causes, you should be subject to more scrutiny." You want a lack of scrutiny? Gaze upon all the foundations,many unknown to most of the public, that are left wing activist. Start with the Ford Foundation.
In my opinion, the biggest benefit of DB plans is that they manage the longevity risk whereas in the DC plans, the individual has to do it him/herself or hire a financial advisor to do that- a better way to do it. 401K/DC plans offer more some flexibility but with limited choices as to where the money is invested depending on the 401K plan and most plans offer an independent advisor to manage the money in which case there is better alignment with the plan and the individual's needs/goals. With a DB plan, which I was also a part for a while and I ended rolling up transferring all my balance to my IRA because I literally had no control over the investment choices and it was not tailored to my needs/goals as the big pool of portfolio is managed by portfolio managers subject to big institutional constraints where the money invested.
How do we get our leaders to do math in public instead of just pushing the same old policy solutions. Just seems like math may help us minimize reutilizing the garbage can theory