Sunday, May 31, 2009

Who Shredded Our Safety Net?

LIKE MOST PEOPLE whose quality of life depends upon the fluctuations of an IRA, 401(k), 403(b), or other acronym-soup retirement account, I was born long before such things existed. It's easy to forget, now that more than half of us have been made shareholders, that until well past the middle of the 20th century, most people had nothing to do with the stock market: Wall Street was for the wealthy and the reckless. It was a world most Americans didn't understand and, after 1929, didn't trust. Some lucky people had pensions, but few had the privilege of even thinking about retirement. They were too busy trying to survive the present—which in my childhood meant the Great Depression and then World War II.

I spent the war years in Washington, DC, where my father had a minor position in the Roosevelt administration. After school, my brother and I spent most of our time running around the streets, trying to get the air-raid wardens to give us a scrap of nylon parachute, or maybe even one of their cast-off World War I helmets, before the blackout drill began. One evening, my mother called us into the dining room and solemnly presented each of us with a $25 war bond. That was my first contact with the world of investment. Compared to a piece of parachute, it was a real downer.

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