States currently cannot declare bankruptcy. If the right has its way, that would change, according to an article, (“A Path is Sought for States to Escape Their Debt Burdens,â€)  by Mary Williams Walsh in the January 20, 2011 New York Times. Walsh cites such right-wing politicians as Newt Gingrich and conservative media as The WeeklyContinue reading “State Bankruptcy: A Right Wing Fantasy to Enable Confiscation of Employee Pensions”
Category Archives: Retirement Policy
Actually, The Retirement Age is Too High, by James K. Galbraith
Published on Wednesday, January 19, 2011 by Foreign Policy http://www.commondreams.org/view/2011/01/19-8 The most dangerous conventional wisdom in the world today is the idea that with an older population, people must work longer and retire with less. This idea is being used to rationalize cuts in old-age benefits in numerous advanced countries — most recently in France,Continue reading “Actually, The Retirement Age is Too High, by James K. Galbraith”
Threat to Social Security: Can Harry Be a Hero? By Dean Baker, Center for Economic and Policy Research
That is the question that supporters of Social Security should be asking as we brace for President Obama’s State of the Union address next week. Specifically, the question is whether Senate Majority Leader Harry Reid will keep up his spirited defense of Social Security or whether he will buckle to the pressure from the financialContinue reading “Threat to Social Security: Can Harry Be a Hero? By Dean Baker, Center for Economic and Policy Research”
Are 401(k) Participants Being Swindled?
Some readers may find the word swindle too strong of a term to describe what took and is taking place in the conversion from traditional pensions to 401(k) and other defined contribution plans. A swindle suggests illegality and what took place was perfectly legal. Or was it? Upon closer examination, where the financial services industryContinue reading “Are 401(k) Participants Being Swindled?”
401(k)s versus Social Security: Comparing the Rates of Return
A common claim of advocates of Social Security privatization is that private accounts deliver much higher rates of return for participants. The Cato Institute, for example, in its Cato Handbook for Policymakers tells us that: �Social Security taxes are already so high, relative to benefits, that Social Security has quite simply become a bad dealContinue reading “401(k)s versus Social Security: Comparing the Rates of Return”
Unfunded Liabilities of Public Pensions, A Red Herring
Rarely have so many people believed as an article of faith something so fervently that wasn�t true: unfunded liabilities of public pensions are speeding us toward fiscal Armageddon. Unless something drastic is done very soon, we taxpayers will have to bailout overly generous, fiscally irresponsible public employee pension systems. A class war is looming, accordingContinue reading “Unfunded Liabilities of Public Pensions, A Red Herring”
The Simpson-Bowles Attack on Social Security
Despite being stacked with opponents of Social Security, the National Commission on Fiscal Responsibility and Reform�s report, otherwise known as the Simpson-Bowles Report, did not garner enough member votes to be automatically taken up by Congress. The report provides, nevertheless, an indication of the tactics of those who wish to reduce Social Security�s role in nationalContinue reading “The Simpson-Bowles Attack on Social Security”
Bad Timing of Investments Harms 401(k)s and Pension Funds
There is an interesting graphic on investment returns in the January 2 New York Times, titled In Investing, It’s When You Start and When You Finish. Thanks to Nat Trumbull for pointing this out to me. It indicates one of the reasons why 401(k)s have done so poorly. I would argue, though, that even withContinue reading “Bad Timing of Investments Harms 401(k)s and Pension Funds”
Scapegoating Public Employees and Their Pensions
Despite its title, “Public Workers Face Outrage as Budget Crises Grow,” by Michael Powell in the January 1, 2011 New York Times is not a typical public-workers-and-their- pensions bashing piece. It points out that pension fiscal problems have been brought on by states not properly funding them. New Jersey Governor Chris Christie, for example, isContinue reading “Scapegoating Public Employees and Their Pensions”
Boomers and Social Security
January 1, 2011 This morning’s New York Times carried a story: “Boomers Hit New Self-Absorption Milestone: Age 65” by Dan Barry that noted that the oldest of the boomers will hit official old age this year. It is a noteworthy demographic fact to comment upon. If I had been writing the article, I would haveContinue reading “Boomers and Social Security”