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I’d add another external factor: the loss of standard career-life tracks. In previous generations you could take a job at a company, buy a house and work to ret
by TuringNYC 6y ago
I’d add another external factor: the loss of standard career-life tracks. In previous generations you could take a job at a company, buy a house and work to retirement. You were loyal to a company and the company was loyal to you.
Now, cycles are fast, companies disappear. When they don’t, they have many rounds of layoffs (sometimes just to juice the stock) and employees have wised up — why slow and steady when there are no guarantees for loyalty?
So you have lottery culture. Because “long term loyalty culture” largely isn’t available.
- Nasrudith 6y agoI have seen the meme of the "death of the defined benefits pension is responsible for <societal ill related to retirement/wages>" but it doesn't make any sense to me upon reflection. It isn't like defined benefits plans created stable returns via magical pixie dust. There would still be pressures and systemic consequences from the failures. The pension model essentially assumes either a far slower world or a protected relatively stagnant market. Even with "shift to government run pension" as a concept still has the same sorts of pressures no matter who the can is kicked down towards.
- hakfoo 6y agoA defined benefit obligation throws a lot of money in the market that's optimizing for long-term yield and low volatility. I'd expect this would influence corporate behaviour.