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A Retirement System That Works for Workers
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  • seattleoutcast

    I would wager that financial literacy was removed from our schools with the intent to make the populace blithering idiots. How else does one explain that we are not focused on our twenty trillion debt and instead we are worrying about the most insignificant issues in our current election?

    Oh yeah, did anyone see the game last night?

    • Robert Sendler

      What he said…

  • Anthony

    Public policy is one part of the problem, but one of the most urgent tasks for governments, companies, and individuals today is to rethink the length and pattern of our country working lives -as intimated above. Related here: https://www.project-syndicate.org/commentary/retirement-age-public-pensions-problems-by-bill-emmott-2016-10

    • seattleoutcast

      I believe that if we abandoned the Keynesian view that requires inflation and embraced deflation, we would be able to reduce our working hours. In a sane world, one might only have to work twenty hours to pay the bills.

      Unfortunately, a greater percentage of our income goes to feed the three monsters: real estate, education and health care. All of these sectors should be deflationary with rising technology. Instead, the Federal Reserve and a small coterie of industries push to have rising costs.

      • Anthony

        OK, that’s one view (especially since the failures in politics and economics are related – though Keynesianism is hardly the problem underlying general economic stagnation). However to your view, organize, run for office, contribute money, involve Millennials and other youngsters; then try to prevail centrifugally.

        • seattleoutcast

          I respectfully disagree. Keynsianism is indeed the culprit to stagnation. One simply has to look at Japan over the past 25 years to see the failure of the theory.

          • Anthony

            OK. Respectful disagreement noted!

        • LarryD

          Inflation creates bubbles, which look like growth, until they burst. The bursting is the beginning of correction of the distortion inflation causes. Bursting is unpleasant, so the politicians and finance types who think they can plan an economy try to mitigate or prevent them. Which makes the distortions more or less permanent. And that’s the mess we (and Japan) are in. Eventually the problems will get so bad, the currency will collapse, and people will flee fiat money. Then the economy can start to clean out the distortions.

          When? Who knows? There is a lot of ruin in a country. Things have to get so bad that the elites lose power.

          • Anthony

            I heard and read that explanation before (as well as Japanese comparison). While there may be aspects of pragmatism (as well as perhaps correlation) to offered view, growth (which I believe we’re both referencing) entails variables population projection and per capital production. Those dynamics are rarely addressed by anyone outside of economics. But, I got your point.

  • Andrew Allison

    There’s already an appropriate regulatory framework (ERISA), it’s just that public pension plans are exempt. A stroke of the infamous pen making public plans subject to ERISA would both resolve the investment issue and expose the widespread fraud on pensioners. Unhappily, neither the President nor the unions give a rat’s-rear-end about the workers they supposedly represent.

  • seattleoutcast

    Funny that an ad for AARP appeared in the banner–one of the bigger institutions intent on looting the treasury and stealing from their grandchildren.

  • Greg Olsen

    I’ve spent my entire career in companies offering 401k plans. Most of the plans should be considered cases of malpractice. It wasn’t the fees but rather the investment options offered. The funds typically had names that would indicate that they offer diversification however a correlation matrix showed 93-99.99% correlation among their monthly expected returns. No diversification in the plans were possible. The plan run by Morgan Stanley that I was in until this year was the only one I’ve ever been in with investment options that were truly diversified. I used a Markowitz portfolio selection model to get the optimal mix for my risk profile, (That MBA in Finance has paid off.) Of course my employer dropped the plan for a cheaper one that does not offer diversification.

  • Beauceron

    I hardly see room to fit financial literacy in between teaching the kids that all white are born racist and what the correct pronouns to call each other are.

  • Boritz

    “By the time an American turns 18 and is able to sign legally binding contracts, that person needs to understand how financial markets work, how personal financial products work, the true cost of credit, and the basics of sound financial planning for big life events like retirement.”

    But they must not be required to obtain a photo ID to vote.

  • Josephbleau

    403b’s are crappy by design, how else can the poor politicians have a great trough of money that rewards not investors, but the management system that supports their pals who kick back funds to the same pols. If these funds were efficient for the investors there would be no gap to make these worhties rich. What good is it to be an ex-congressman if the mayor of the big blue city you reped can’t give you a contract to manage and absorb in fees the money of other truly needy folks. I honestly don’t know if we would not be better with Putin, he at least is a more fun personality. Growing up in America is about the eventual realization that the freedoms we are told about are only a chimera. We are ruled by law as a blunt instrument applied by our more stupid yet more powerful betters, for their self enrichment.

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