Recently I was thinking about how much stress pensions cause to the social and economic systems in the United States. After looking at this issue for a while I concluded that pensions are a major contributor to social inequality, and they create unreasonable (and maybe unpayable) financial burdens on future generations of employees and citizens. Here’s how:
Promise now, others pay later
When I began talking to people about pensions I learned that they may also be unsustainable: that is, pensions are promised to employees by a generation of company execs and union bosses who aren’t going to be around the day pension payouts start to come due. This is the same sell-the-future-short ruse that politicians employ when they’re able to get public commendation for voting a law into being although they make no provisions to fund the law’s enactment. New Jersey’s Amistad Legislation which became law in 2002 but is still waiting for funding to bring a racially balanced historic perspective to classrooms across the state is a good example of this. The Racism in Higher Education paper sheds some light on this sujbect.