This one is for the numerous people that have been arguing with me regarding minimum wage for the last couple of days.
Title of article “Early 401(K) withdrawals replace home loans”
The article explains the details of Cindy Cromie, a lady that lost her job. An educated lady whose work was outsourced.
A few quotes to sit the table.
“Retirement accounts have become American’s new piggy banks,”
“When the University of Pittsburgh Medical Center outsourced Ms. Cromie’s medical transcription work, her income was cut by up to 60%, she said, at times leaving her with minimum wage pay.”
Note the “minimum wage pay.”
The article goes on to explain how in the past Americans were borrowing on the increased equity in their homes to maintain a lifestyle. After the crash of 2009 that avenue closed and they began to use their retirement accounts for the same purposes.
The article states in 2011 the IRS collected 5.7 billion in penalties for early withdrawals. This means Americans withdrew 57 billion from their retirement accounts in 2011.
A couple of points here.
- Not everyone working for minimum wage is in a starter job like some want us to believe.
- American workers have been living with stagnant wages for years using various means to maintain their standard of living.
Now come my friends, don’t you think it is time we all joined together and did something about the ever growing income inequality in this world?
You may be able to find the article in Bloomberg News, if not I have an issue of Investment News with it in, feel free to ask for it for your perusal.
Or perhaps your financial advisor would let you borrow his copy.