“Don’t Owe. Won’t Pay.” Everything You’ve Been Told About Debt Is Wrong

[1939]

25. Good Point

There used to be a very solid Haberdashers Union. Since most hat factories were small businesses, the businesses sent a portion of their payroll to the union. The Haberdashers Union ran the fund honestly with no one dipping into union pension funds. As hat makers retired, they would draw pensions from the union fund. All was well with the world till January 1961.

In that fateful month, John F. Kennedy was inaugurated and chose not to wear a hat. All of a sudden, most American men quit wearing top hats, homburgs, fedoras, derbies, etc whenever they went out doors. Hat factories were pretty much limited to cowboy hats and many closed their doors. As contributions to the pension fund dwindled to a small trickle, the union was force to trim pensions. By the mid-70s, the pensions for retirees had to be cut back to $40 a month.