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The answer to that shift in employee tenure is simple: shift away from employer managed pensions to independent management, same as for health insurance. That s
by wahern 5y ago
The answer to that shift in employee tenure is simple: shift away from employer managed pensions to independent management, same as for health insurance. That shift was incomplete because corporate focus shifted to draining pensions and centering compensation packages around mechanisms that favored management and especially executives (401(k)'s, stock options, etc), not adapting pensions to employment trends.
- ghaff 5y agoBut, now, if you have a widespread defined benefit pension that's largely independent of employment, don't you now have effectively a shadow version of Social Security?
- wahern 5y agoYes, except it has less systemic moral hazard since the insurer can't [directly] print money and/or issue endless amounts of debt.[1] I'm not a Social Security cynic; I believe it serves a crucial but limited role in providing economic security. [1] Not per se a horrible thing, but that ability is better preserved for infrastructure and other discretionary investments rather than retirement.