[Correction: An analysis of Senator Warren’s DNA sample by Carlos Bustamante, a professor at Stanford University, revealed she had more native American DNA than is typically seen in descendants of white Europeans. It indicated she possibility had a Native American ancestor between six and 10 generations ago.]
We all act in our own self-interest, something Elizabeth Warren’s DNA debacle illustrates.
What she clearly did was appropriate a culture (mistakenly or intentionally) for which she had little actual affinity, with results showing anywhere from 1/64 to 1/1,024 Native American, well in-line with, or below, the amount any average citizen would possess.
More concerningly, and regardless of her politics or potential presidential run, is the possibility she benefited from affirmative-action programs meant for minorities, despite her one-percent war cry of a rigged system for the rich.
It’s hardly the first time she failed to practice her preach, routinely decrying the high cost of college as she collected a mid-six-figure salary for teaching one class, and gamely deflecting blame to greedy loan backers.
Now comes word that college costs are falling, but not for reasons one would think (that the bubble has finally popped)— it’s actually due to more scholarship awards. Tuition rates continue to rise and are then partially returned in the form of collegiate largess, for which students are supposedly thankful. It’s a failure of logic their coursework would hopefully address; we won’t hold our breath.
It’s why we routinely argue for the invisible hand, the only true market measure of effective allocation that’s devoid of (some) baggage we all bear. Remember it the next time an Elmer Gantry-like politico and/or policy wonk pitches government-run retirement saving salvation.
Teresa Ghilarducci’s Guaranteed Retirement Accounts come to mind, although far from a self-possessed politician, we believe her intentions true.
The professor of economic policy analysis at the New School for Social Research—a tell if there ever was one—somehow defines ‘guarantee’ as mandatory. Her biggest Wall Street backer is, of course, Blackstone’s Tony James, who just might benefit from such an idea, and happens to be a major political donor to one particular party.
Small, decentralized solutions that involve public programs certainly have potential—state-run retirement plans for instance. But massive federalized and subsidized programs run by popular personalities who pretend to be something they’re not (responsible stewards of public trust acting in our best interest) won’t deliver desired results, and could well make the national retirement savings situation worse.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
