The elimination of pensions has been the dream of corporations for decades. Towards that goal, they fight to break unions and any other organized voice for working people.
The Washington Post tracked the lives of the 998 workers who were laid off when McDonnell Douglas closed its plant in Tulsa in 1994.They lost their pension benefits. Most can never stop working because Social Security is not enough to live in.
I hope this story is not behind a paywall. Let me know if it is.
“TULSA — Tom Coomer has retired twice: once when he was 65, and then several years ago. Each time he realized that with just a Social Security check, “You can hardly make it these days.”
“So here he is at 79, working full time at Walmart. During each eight-hour shift, he stands at the store entrance greeting customers, telling a joke and fetching a “buggy.” Or he is stationed at the exit, checking receipts and the shoppers that trip the theft alarm.
“As long as I sit down for about 10 minutes every hour or two, I’m fine,” he said during a break. Diagnosed with spinal stenosis in his back, he recently forwarded a doctor’s note to managers. “They got me a stool.”
“The way major U.S. companies provide for retiring workers has been shifting for about three decades, with more dropping traditional pensions every year. The first full generation of workers to retire since this turn offers a sobering preview of a labor force more and more dependent on their own savings for retirement.
“Years ago, Coomer and his co-workers at the Tulsa plant of McDonnell-Douglas, the famed airplane maker, were enrolled in the company pension, but in 1994, with an eye toward cutting retirement costs, the company closed the plant. Now, The Washington Post found in a review of those 998 workers, that even though most of them found new jobs, they could never replace their lost pension benefits and many are facing financial struggle in their old age: One in seven has in their retirement years filed for bankruptcy, faced liens for delinquent bills, or both, according to public records.
“Former McDonnell Douglas employee Ruby Oakley works five days a week as a crossing guard for an elementary school in Tulsa, Okla. (Nick Oxford/For The Washington Post)
Those affected are buried by debts incurred for credit cards, used cars, health care and sometimes, the college educations of their children.
“Some have lost their homes.
“And for many of them, even as they reach beyond 70, real retirement is elusive. Although they worked for decades at McDonnell-Douglas, many of the septuagenarians are still working, some full time.
“Lavern Combs, 73, works the midnight shift loading trucks for a company that delivers for Amazon. Ruby Oakley, 74, is a crossing guard. Charles Glover, 70, is a cashier at Dollar General. Willie Sells, 74, is a barber. Leon Ray, 76, buys and sells junk.
“I planned to retire years ago,” Sells says from behind his barber’s chair, where he works five days a week. He once had a job in quality control at the aircraft maker and was employed there 29 years. “I thought McDonnell-Douglas was a blue-chip company — that’s what I used to tell people. ‘They’re a hip company and they’re not going to close.’ But then they left town — and here I am still working. Thank God I had a couple of clippers.”
“Likewise, Oakley, a crossing guard at an elementary school, said she took the job to supplement her Social Security.
“It pays some chump change — $7 an hour,” Oakley said. She has told local officials they should pay better. “I use it for gas money. I like the people. But we have to get out there in the traffic, and the people at the city think they’re doing the senior citizens a favor by letting them work like this.”

And we are giving tax breaks to the wealthy. I am 65, have lost my home, huge debt from earning my doctorate, no savings, and no retirement. I am facing working full time until I drop. I just does not see right. There is no hope for many of us. What have we become as a people and as a nation?
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To all those young teachers out there who think their unions aren’t worth the dues they pay, please read the article in the Post referenced by Diane and think again. I am retired now from teaching in the public schools and living quite comfortably on my pension and social security, thanks to the work my union did fighting on our behalf. To all those young teachers in Pennsylvania, where I taught, who think that voting for Tom Wolf next year doesn’t matter, think again and reread that Post article closely. If a creep like Scott Walker, who would treat teachers and their unions like the trash he made his millions from collecting, is elected governor, your pensions and mine will be at risk without a doubt.
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I agree, Gary. I’m a retired teacher in NJ. The pension and Social Security (& Medicare) make all the difference in the world. For 8 years Christie has railed against public school teachers, their supposedly “gold plated” pensions and “Cadillac” health benefits. The teachers are blamed for the pension crisis in NJ. The vile right wing NJ101.5 FM spouts anti union and anti pension propaganda loudly and nonstop. How dare teachers have a pension when no one in the private sector has a pension or health benefits. Christie eliminated the COLA for current and future retirees; even though the COLA was not a huge amount of money, I certainly do miss it. A pension is deferred compensation, not some gift. NJ retired teachers are painted as some kind of enemy because of our pensions, we are blamed for NJ’s economic woes. We are told that the pensions are unsustainable and that future retirees should be satisfied with a 401K. The only reason that the pension funds are in crisis is because the politicians of both parties didn’t bother to properly fund them over more than 20 years. In effect, they used the pension contributions to balance the budget instead of placing them in the pension trust. They argued that the interest that the pension funds earned would fill the hole created by the politicians, not the teachers. That didn’t happen.
Side note: In some states, public employees who get a pension do not collect Social Security payments.
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Populous California is one of those states. I don’t get Social Security when (if) I ever retire, but only my pension.
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Scott Walker is a creep, but quick correction to my comment, I meant the Pennsylvania creep, Scott Wagner, who wants to end the current pension system for all new school district hires and wants school vouchers
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Gary,
Forgive me. I changed Scott Wagner to Scott Walker, thinking you had made a typo. There is also Rick Scott (Florida) and Rick Snyder (Michigan). Confusing when their names start merging
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Is it possible that the GOP is growing clones in giant test tubes explaining Rick Scott and Rick Snyder.
Next step for the GOP: clone Trump and Bannon several hundred times and send them out to rule the world one country at a time.
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Read and weep. This understated and poignant piece s/b require reading, especially for those who still cling to “American exceptionalism.” The US is an exceptionally poor place to live right now and we may well have passed the tipping point.
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Every time I hear the word entitlement, my mind goes straight to the proponents of corporate welfare who expect to have talented and dedicated workers, but at the least possible immediate and future cost. Today’s welfare kings and queens truly are the CEOs and board members and stakeholders who are “free” to exploit those who make money for them.
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Since so many of these billionaires that have made their fortunes in America get to keep so much of their money due to tax code manipulation, they then want to destroy the public asset of public education by monetizing our young people. It is evil, twisted and worthy of any Dickens’ novel.
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Back in the 80s we were repeatedly assured that we would be so much better off with 401k accounts instead of those old school, status quo pensions. The magic of the market place would be unleashed for us to all benefit from. Hah! The only ones who benefitted were the wall streeters who then skimmed and churned the accounts.
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Yes, 401Ks are nothing but a scam. Countless people had their 401Ks decimated during the Great Recession of 2008. Even under the best of circumstances, 401Ks are not enough to live on in retirement. Defined benefit pensions supply a livable and decent retirement.
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401 ks are great for those of us who also have a defined benefit pension . Then we can use our 401k to invest in Wall Street and decimate our pensions . Not much different our pensions are already doing. The alternative to our private pension system was enhanced government pensions (SS), oh well .
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As the Norwegian filmmaker how well that is working .
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In my view, after 10+ years as a union rep, too many teachers don’t know the value of a Defined Benefit (Pension) Plan – and the unions do too little to inform them. (Ditto for the value of a contract.)
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The union should explain the the rank and file that it is the difference between eating normally or eating cat food in retirement. There is a great deal of propaganda today about taking ‘responsibility’ for one’s financial well-being. It is a crock of lies. Most people are not savvy enough to manage their money, and an investment misstep or a down turn in the market could make a elderly person homeless and at the mercy of charity. The individual bears the burden of the investment. Also, what is never mentioned is that the working poor that live check to check will never amass enough money for a comfortable retirement. A define benefit is a safer way for all people that are not economic insiders like the members of Congress.
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But military and federal government pensions will never be touched. A know a few people with them, people who never earned a penny outside of government work, and to a person they are “anti-government” and loyal Republicans who voted for our Dear Leader.
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Yeah like the FBI (LOL, LOL, LOL ,LOL )
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Actually, I have a husband working for the federal government, and for rank and file people, their pensions may be at risk.
My father was a civilian working at a military base, and his pension saved my mother and sister when he died suddenly at age 46. I don’t know what would have happened if that annuity hadn’t been there for my family.
Everyone should have that kind of benefit. But rank and file federal employees are in the cross-hairs, too.
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http://www.governing.com/gov-institute/funkhouser/gov-older-poorer-america.html
Incomes are going to collapse for older Americans as a group with a significant increase in social instability.
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how can the selling of McDonnell Douglas to Boeing end the financial responsibilities of the former to its employees. Boeing should have to pay all of those financial obligations including pensions.
Obviously, it is unethical to deny people benefits that they had worked for.
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Of course, it is highly unethical, especially for a company with a healthy financial outlook. Our oligarchs are manipulating laws so that corporations can squirm out of their responsibilities to workers while the laws allow companies accumulate great wealth that they hide overseas. We’ve become a gigantic pay to play scheme.
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I was wondering the same thing. How did they get away with it? I’d like some details on that deal. Maybe there was something on that at the WaPo article? The link was behind a paywall for me.
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Our nation is doomed if we keep going down this path
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“The Washington Post tracked the lives of the 998 workers who were laid off when McDonnell Douglas closed its plant in Tulsa in 1994.They lost their pension benefits. Most can never stop working because Social Security is not enough to live on”
Fear not. The GOP and Dems are going after SS by slashing it by 20%, means testing it, and, for a start, semi-privatizing it like they did in Chile. They want to turn the USA into Brazil or Russia, and the sooner, the better.
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While Corporations want to get rid of future pensions, Hedge Funds are raiding existing public and private pensions draining them of their funds by charging exorbitant fees and making risky investments that often cause more loses to those pension funds. A few public and private pensions have stopped turning their money over to Hedge Funds but many have not and the piracy continues.
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Led by John and Laura Arnold and their “Foundation.”
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Yes, billionaire JOHN Arnold, ex-Enron, wants to eliminate pensions for working people. He doesn’t need one. Why should you?
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Now THAT was well said, Diane!
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Trump reversed the fiduciary responsibility of financial advisors that was part of Obama’s legacy. Now financial advisors can get back to lining their own pockets with our cash. Moreover, many states under the influence of lobbyists do not have to inform public employees about how much their management fees are so the financial services industry can freely feed off teachers’ benefits. It’s a rigged system.
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SCARIEST reality put so decisively into words….
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My backup retirement plan is suicide. I’m not joking.
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That’s very final. Many older Americans are living affordably overseas in Ecuador, Panama, Costa Rica and Mexico. You may have to work on your Spanish. Belize is an affordable option that speaks English.
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FLERP,
No.
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Suicide should not be an option. There are so many ways for an individual to climb out of that nightmare. We all have the power to take charge of our lives and not let what happens outside of our skin depress us to that point.
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One of my favorite brothers (I have 5, now 4) committed suicide five years ago. It was unexpected and terrible. Everyone was left wondering if we had failed, whether we might have done more, why didn’t he ask for help. At his memorial service, someone said that suicide is a permanent solution to a temporary problem. The rest of us miss him. I wish he knew. I wish he had lived to see his first grandchild, who looks so much like him.
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Diane, so sorry for the tragic loss of your brother.
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Thanks,Bethree
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FLERP,
If I knew your whereabouts, I’d call 911. You are not mentally healthy. Suicide is only reserved for those who suffer irreversible, terminal and painful somatic illnesses. Unless you have that situation, you are in dire need of professional counseling. I wish I could help. Let us know how we can help you.
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Don’t worry, it’s at least 20 years down the road.
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Sorry, but I don’t think you’re funny or appropriate. You need help.
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Mine is playing the Pick 3. I’ve already won $40 on $9 of tickets purchased.
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For those who state, above, that you live “quite comfortably” on your pension & S.S., be careful saying as much to others–you are liable to be attacked & made an example of, as being an “entitled” person.* (Never mind that we earned our pensions & S.S. {sigh–I live in ILL-Annoy, also one of the W.E.P. states}.) The deal–in the making for over 40 years (ALEC, the Koch bros., Jas. Buchanan {must read Democracy in Chains})– paid off for the 1% making them, in fact, the 1%, & others characters in a Dickensonian dystopia.
*A Chicago PBS reporter just did a “story” on the huge pensions paid to retired educators. Of course, in his story, he neglected to tell the whole truth (Paris Schultz {or Schutz-?}, have you leaned NOTHING from the phrase “fake news” when it is TRUTHFULLY applied {by people like me}?! It is the duty of the press to tell the WHOLE truth & nothing BUT the truth!)–he used the examples of those highly paid ILL-Annoy school principals, superintendents & other school administrators (yes, you special ed. administrators who are killing off special ed. {&, to be fair, of course, I don’t mean all of you–the leadership of the ILL-Annoy Assn. of Sp.Ed. Administrators is particularly complicit in the destruction of sp.ed. in ILL-Annoy–SHAME on you!!!May the ghosts of what-happened-to-disabled-students-prior-to-the-passage-of Public Law-94-142 [in the ’70’s] visit you this Christmas & scare you into doing the right thing–which special ed. teachers, aides & others who actually work with, educate, care about & HELP the kids already do.) May you villains all get coal in your stockings!!!
And, Paris, et.al. who would file such misleading reporting, would you be a real journalist & set the story straight in 2018? (Go see “The Post” over the holidays.)
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Diane you must be on my email list .
So lets see how this works . We use the Tax code to attack high tax states .. They are for the most part high tax because their employees have high wages and pensions ,due to their Unions . The predominance of Pubic sector unions , combined with the private sector unions in these states keeps them Democratic,
NY with still a 23% unionization rate. Protecting those Unions from the Wisconsin-ization of these states .The restriction of public sector bargaining rights, the end of Davis Bacon and Right to Work Leading to the demise of public sector and private sector unions and pensions.
Gee its a wonderful plan . Or as I posted on Facebook this morning it is time for the guillotines .
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I guess I left out that the Republicans are looking for a tax rebellion to create the restrictions .
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When I graduated college in 1983, the firm I work for now, did not exist. As a journeyman engineer, I have done all kinds of work, all over the world. Some of my jobs have lasted less than 6 months.
None of the firms I have worked for, will pay me a pension. So what?
In a dynamic economy, people will change jobs. I learned how to program computers with punch cards, and I am probably the last class, that used a slide rule.
In the economy of the 21st century, the average person is going to change jobs many times, some more than others. The days of graduating high school, joining a firm and staying there for 30 years, are long gone.
So what?
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So you have no problem with the elderly working into their 80s or 90s so that they don’t have to starve.
Got it. You’re really a humanitarian.
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Do not put words in my mouth! I just said, that is impossible to expect a pension, from a company that does not exist. That is why we have 401k plans and other private methods, to save for retirement.
I never use sarcasm, do not use it with me.
Say what you mean, and mean what you say.
“We live in a world, in which the only constant is change” – Heraclitus, Greek philosopher.
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And if we had a National pension system that would not be an issue . Good luck Charles . Stay healthy.
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Charles, go immigrate to China, Dominican Republic, or Russia, where there are almost no social safety nets. You would be a lot more comfortable there. I will buy your airline ticket for you as a parting gift.
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Make sure it is a one-way ticket for the Great “C”.
By the way, China has a social safety net. China has something similar to Social Security and medical coverage. Retirement is mandatory at a given age. I think it is 65 and retirement comes with a monthly check.
About 800 million rural Chinese pay no rent or mortgage payments for their homes but then they also can’t sell them. Average rural earnings are not that much but when you don’t have to pay for the home you live in and there is no property tax, a little goes a lot farther.
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I forgot to mention, “C” won’t be eligible for China’s social safety net and he’ll have to pay for the visa that allows him to stay there and renew the visa with more fees to stay longer. Without a stream of income coming in, I don’t think China will let any foreigner stay long.
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I have left the USA previously. I served in Germany, at a front-line combat base for two years, during the Cold War. I went to Mozambique in 1984, to serve at the US Embassy, during the Mozambican civil war. I left in 1991, to serve in Saudi Arabia, during the first Gulf War. I left in 2004, to serve in Afghanistan during Operation Enduring Freedom (civilian). I left the USA for ten years, during the Iraq/Afghanistan conflicts. Two of my co-workers were killed, and another lost a hand.
I am a US Citizen by birth, and I have earned the right to live here, more than most people.
Take your plane tickets. (and use your imagination).
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Maybe instead of running schools like a business, we should run businesses like the public sector where profits– and shareholders– don’t exist… and employees aren’t implored to write letters to congress asking them to build jet bombers so that they can keep their jobs. https://wp.me/p25b7q-21F
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Sometimes I think our view of the pre-Reagan years is from behind rose-colored glasses. I worked in the office end of a constr/ engrg firm, none of us had the union benefits of the trade workers at the site. Power engrg was more stable, but many of my colleagues came from the chemical companies. There were six big local chem firms who ‘shared’ the white-collar labor pool: the five higher bids on a project would lay everybody off & they’d run to the winning bidder’s firm. It was almost impossiible to work long enough to get vested anywhere. And even if you did– until the ERISA law in ’74, you lost your pension benefits every time you changed jobs!
My husband has worked his whole career in power engrg/ construction. Regular pensions were replaced w/ 401(k)’s in ’94. In ’08 our 401(k) lost 40% of its value. As our govt has done nothing to prevent Wall St shenanigans in the same vein, I expect this will happen again, only next time it will be when we’re trying to live off it.
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This is addressed to all those parents and grandparents who are looking for a suggestion as to how their children and grandchildren should make decisions as to how to earn a secure living in their lives. In 1927 at the age of 13 my dad got himself a job as a page with Warner Brothers at their movie theatre in NYC. Over the next 25 years or so, he worked in all the nonunion departments eventually reaching the position of Theatre Manager. None of these jobs had a pension or health benefits attached. Finally, in the mid fifties he was told he was going to be let go. The entire back stage crew at the theatre were members of Stagehands Local 1, IATSE. One of those long time members offered Manny the opportunity to make application to Local One. After talking to my mother, they decided that he take that opportunity. Thirty years later at the age of 65 my parents retired to Florida. They took with them Manny’s full union pension, union medical benefits and his Social Security and medicare benefits. They lived out the rest of retirement comfortably. The only job he took was one that allowed him to make cradles that he gave to an orphanage. And of course he never made a dime on any of the toys he gave to the children.
And now, as I approached the age of 73, long retired from Local One (I apprenticed in 1967) I work for a non-profit organization (www.Succeed2gether.org) that provides free tutoring for children who can’t afford to pay for the additional help that they need. I take care of the stagehand work that needs to be done. I do receive a small hourly salary. Not because I need it but because it’s a way to be compensated for work that needs to be done. My union pension and health benefits are firmly in place. Can I say the same for my social security and medicare? I’m not sure. This group of cohorts from the president and the republicans in charge of the rest of the government are trying their best to eliminate these hard earned benefits. God I hope they don’t succeed.
So if you want to make a suggestion to your kids, tell them to look into unions that they may have access to. There is security to be had.
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In decades past when people retired with fixed-benefit retirement plan incomes they continued to be consumers and thereby kept out consumer-based economy humming along…but in recent decades since the nearly total loss of fixed-benefit retirement plans and the steep decline in retirement income, when people retire they drop out of the critical discretionary spending segment of the economy and spend mostly for necessities. That’s a major cause of our nation’s sluggish economic growth these days, and it will become worse because 10,000 Baby Boomers are retiring every single day, and many are dropping out as discretionary spenders because their lousy 401(k) variable retirement income plans don’t provide sufficient income. An economy that loses 10,000 consumers every single day is headed into the toilet. If Social Security is also cut, our already “emperor-who-wears-no-clothes” shaky economy will tank even faster.
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Being RICH & ENTITLED is a SICKNESS!
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Reminds me of Tevye in “Fiddler on the Roof”, when being told that “money is the world’s curse”, Tevye replies “Curse ME!!”
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