Hobby Lobby

Discussion in 'Politics' started by Baptist in Richmond, Apr 4, 2014.

  1. Baptist in Richmond

    Baptist in Richmond
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    Mar 2, 2003
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    Good Evening,

    Today I had a spirited disagreement with someone with respect to Hobby Lobby. They are being smeared in the news about the mutual funds that are in their retirement plans.


    Now, as someone who works in the business, I am really starting to get annoyed with the complete nonsense and lies that are being said - sadly, from those on my side of the political aisle. As a result, I wanted to post a few points so that all of you - regardless of where you stand on this subject - can refute the lies you are undoubtedly hearing.

    Don't get me wrong: I am opposed to Hobby Lobby's claim that this violates their freedom of religion, but on the grounds that corporations are not individuals. It is similar to my opposition to the "Citizens United" case. But that is another discussion.

    Regardless, here are some points to make if you encounter someone making these claims:

    1. Hobby Lobby IS NOT investing in these companies. As part of their retirment plan for the employees, they are apparently utilizing a 401(k) program. This employs mutual funds for the participants. These are actively managed funds, which are NOT managed by Hobby Lobby. To suggest that Hobby Lobby can direct the funds in the 401(k) is utter nonsense. It is no different that if you were to call your mutual fund company and order them to purchase stock in a particular company.

    2. The participants in this 401(k) plan DO NOT own the stock that is held in these mutual funds. To imply this is to demonstrate one's complete lack of understanding of how mutual funds work. Though not always, mutual fund shareholders own shares in the fund, they do not own the stock held by the fund. Now, if there are Unit Investment Trusts (UIT's) involved, this may be the case. But from what I have read, the investments in question are mutual funds. Simply put, the shares held in a mutual fund are shares in the fund itself, NOT the stocks held in the fund.

    Anyway, I apologize for this rant, but it is really starting to annoy me. I hope all of you point these facts out to anyone who is making false claims about the company


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