Sunday, April 30, 2006

NEA Shafts Its Members Financially

Last week the Los Angeles Times (they do surprise me sometimes) published a three-part series, the third part being how the National Education Association gets kickbacks from investment companies that the union then promotes to its members--but the investments offered have high annual costs and low returns. In other words, a paper renowned for its leftward tilt was quite direct in stating that the NEA pushes these bad investments on teachers, pimping its own members just to make a buck. The EIA (see blogroll at left) pointed out that the article was written by the Times' personal finance columnist.

The story has gone national, obviously. A columnist from the Pittsburgh (PA) Tribune-Review is caustic in his commentary:

Is there a betrayal more obscene than a union that will sell out its members?

The Los Angeles Times reported on Tuesday that "labor groups have joined forces with investment firms to steer members into savings plans that often have high expenses and poor returns." It's a must-read for more than teachers; it is an eye-opener for the rank-and-file who blindly trust union leaders.

The Times story included detailed financial analysis of the union-endorsed products that indicates they are substantially inferior and very costly. And that was not the most disturbing part of the virtual scam.


A union spokesman trying to rationalize the betrayal told the reporter that, "Teachers are trained as educators, not financial managers. What we are concerned about is guided, safe, secure investments."

In other words the union claims its teachers cannot tell the difference between a good rate of return versus a bad one even though millions of employees with 401(k) accounts who also are not financial managers can.

Could that be why American students typically have the lowest math scores compared to other nations?


Wow. And isn't Pittsburgh a union town?


rightwingprof said...

The Trib-Review is a conservative paper, believe it or not. I read it every day. If I saw a liberal editorial on their site, I'd be very surprised.

They've redesigned the site (I hate it). To get to the opinion page, click news, tribune-review at the top left. Then scroll down to opinion.

Darren said...

Thank you for clarifying.