Parson Wonders “Do baby boomers really think we’re going to sit still and retire while we’re indentured?” And the internet is very fragmented
Almost all modern nations are based on the idea of a social contract. So, for example, people delegate to state institutions the right to dispose, including in the economic sphere, and in return, for many years of conscientious work, social security is guaranteed after retirement. Unfortunately, the pension situation in almost all countries is far from ideal, and these problems have not circumvented the world’s largest economies.
The current US pension system faces major problems. It’s like a financial bubble. In other words, in many states, if everyone who was eligible suddenly retired at the same time, there would be little left in the budget. And it’s not just theory. Moreover, employees who are currently in their prime cannot count on a comfortable retirement. More precisely, a comfortable old age guaranteed by the state and employer.
The problem is, for example, This post by user u/fordanjairbanks On the Reddit Anti-Work community. A post written a few days ago went almost viral with about 11.7K upvotes and about 3K different comments. Yes, the author’s approach to the post can be considered a bit one-sided and left-wing, but the issues they raise are entirely topical and relevant.
More information: reddit
Poster questions pension system crisis linked to persistent underfunding
Image credit: RODNAE Productions (not actual image)
So, according to the authors of this post, modern American society faces the problem of the largest generation in history retiring and using mostly 401k stocks and dividend stocks only. Labor. OP believes that pension funds will remain hedge funds that exist due to bankruptcies or devaluations of healthy companies. Therefore, the active working generation can no longer count on a comfortable retirement.
Image credit: u/fordanjairbanks
According to the post’s author, you don’t really have to work hard under those circumstances
So the OP points out that a perfectly logical question arises. If this work does not bring any benefits in the long run, why should we work with existing paradigms of socio-economic relations? It draws a number of conclusions, first blaming capitalism itself, and second, arguing that the baby boomers themselves are partly to blame for the current situation.
Image credit: u/fordanjairbanks
The author is furious at baby boomers’ attitudes to their own children’s problems caused by the current state of the pension system
In the OP’s own words, they’ve spoken to many baby boomers and are “ignorant of how much the younger generation is struggling and the lack of incentives to perpetuate this system.” The original poster wonders how the older generation can retire peacefully after working so hard for this system that fails to offer their children and grandchildren the same deal.
Image credit: RODNAE Productions (not actual image)
Capitalism isn’t ideal, but mankind hasn’t come up with a better one yet
The problem here, of course, is not so much with capitalism itself. Ultimately, the sad experience of the Soviet Union and the countries that formed after its collapse clearly shows that capitalism is not ideal, but that humanity has yet to come up with anything better. , the problem is not in the system, but in the people who manage and regulate it.
Image credit: u/fordanjairbanks
The US Social Security system ran a deficit of $40 billion for the first time 13 years ago, due to two main factors. The biggest generational mass retirement in US history and the global financial crisis. When he lost his job, many of those who normally worked until age 65 or older opted for early retirement, further straining the system.
Image credit: u/fordanjairbanks
As of today, the unfunded debt of US state and local pension funds has increased to $1.45 trillion
In addition, the higher the unemployment rate, the fewer people pay taxes and consequently less money going into the Social Security system. As a result, after 2015, the system began experiencing funding shortages every year. As such, as of January 2023, the unfunded debt of US state and local pension funds increased to $1.45 trillion. According to Bloomberg.
Image credit: u/fordanjairbanks
There are two real ways to deal with this, neither of which is incredibly popular from a political point of view.
There are two ways to deal with this, neither of which are very popular. Either increase taxes or cut benefits. Perhaps that is why politicians have hesitated for so long to avoid discussing such unpopular issues in society. must be done and urgently.
Image credit: Inzmam Khan (not actual image)
“In the midst of a recession trying to provide the resources needed to pay back $1.45 trillion, state governments will be hesitant to raise taxes,” said Anthony, executive director of the Equable Institute, a New York-based nonprofit. Mr Randazzo said. In an interview with BloombergWe should hope that politicians have enough resolve and that society has the wisdom to deal with all this. I got out of the ordeal.
People in the comments assume the real problem arises when baby boomers can no longer take care of themselves
Opinions are divided as to who commented on the original post. For example, when baby boomers retire, people realize that they are actually passing their wealth on to their children. “It’s the next stage in this process where people get an intergenerational wealth shuffle,” one commented. But when these same baby boomers can no longer care for themselves, this concern falls entirely on their children’s shoulders.
Some of the comments were angry at the baby boomers’ attitudes towards money in general and towards their own children’s future in particular. We clean up after them,” wrote one commenter. is likely to be criticized even by children.It’s life after all.
Let us know in the comments below if you have your own take on this issue and how you think it could be resolved. Ultimately, truth is born in disputes. There is nothing wrong with properly discussing socio-economic topics with mutual respect.