WILLisms.com: AARP's Hypocrisy.

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AARP's Hypocrisy.

Take a wild guess at which organization has this article, titled "Count on Compound Interest," on its website:

"Many years ago, someone asked Albert Einstein what he thought was the human race's greatest invention. His reply?
'Compound interest.'

Compound interest is a powerful tool for building wealth and financial security. Over time, it can make your money grow dramatically."

Yep, how did you guess? The AARP:

They go on to describe the "Rule of 72:"

"How long will it take for your investment to double with compound interest? To find out, use the Rule of 72. Divide 72 by the interest rate you expect to receive on an investment. For example, if your investment earns 6 percent interest, your money will double in 12 years (72 divided by 6 equals 12)."

As Larry Kudlow points out:

"The AARP advertises no fewer than 38 different stock and bond mutual-fund investments to their members. You can buy anything on their website from big-cap Dow stocks to emerging-market funds. If you want to 'gamble,' you can even buy Argentina — through the good offices of the AARP."

Not only that, but AARP, as an organization, is broadly and deeply invested in stocks and bonds.

Meanwhile, AARP vehemently opposes Social Security reform. Their ads say:

"If we wanted to gamble, we’d play the slots.”

They even have a little picture of dice on their website to indicate "gambling."

Why does AARP oppose reform?

-Because scaring seniors is good for AARP's business. Framing its fight as one on behalf of seniors against forces who want to take away entitlements is good for business.

-Because, with the current system, AARP is able to perpetually lobby for benefit increases. Reform the system, and AARP's lobbying efforts on Social Security are no longer required.

-Because it supported the Medicare Prescription Drug efforts of President Bush, which irritated Democrats in Washington. AARP is trying to get back in good favor with Democrats. Afterall, AARP has received over a billion dollars in taxpayer money over the years.

-Because AARP has always had a big-government agenda. It is a liberal-leaning organization.

WILLisms.com will continue to follow the AARP's duplicity, so stay tuned.

Posted by Will Franklin · 8 February 2005 02:46 PM

Comments

A few years ago my father and I learned something about my grandparents that was both upsetting and affecting their healthcare. We found out that my grandparents couldn’t afford all of their prescriptions. Suddenly the evening news stories about older Americans choosing between meals, bills and drugs hit home.

Today, we happily subsidize our grandparents, but the problem remains.

The demographics of the AARP are changing dramatically. Over the next five years, we’ll see the more and more baby-boomers (from the WWII era) being overtaken by those from the Vietnam War era.

As people live longer, we’ll have to address healthcare issues like prescription drugs and social security, and do so fast.

While Mr. Bush has made strides towards improving these two areas of concern, please note two things:

1. The Medicare Prescription Card program truly is a difficult program to understand. I read it. It’s horribly confusing and intimidating.
2. Yes, privatization of social security will work, but only if you’re under age 30; so you have enough time to bank.

Too bad we didn't use that surplus wisely in 2000.

Posted by: Steven D. Rivas at February 10, 2005 01:19 AM