America is heading into an era of ‘pension poverty,’ economist warns
by: J. D. Heyes
NaturalNews.com
Tuesday, August 04, 2015
A noted author and freelance economist has made a frightening, yet eminently logical conclusion: America’s pensioners – those who receive Social Security or other government entitlement – are about to enter an era of “pension poverty” similar to that being experienced by the broke countries of Europe.
Writing at his popular Of Two Minds blog, [found here], Charles Hugh Smith notes that the biggest problem with the current pension model is that it was developed and passed decades ago by lawmakers who had little understanding of, or appreciation for, further economic conditions.
“The core problem with pension plans is that the promises were issued without regard for the revenues needed to pay the promises,” he writes in a piece called The Coming Era of Pension Poverty.
“Lulled by 60 years of global growth since 1945, those in charge of entitlements and publicly funded pensions assumed that ‘growth’ – of GDP, tax revenues, employment and everything else – would always rise faster than the costs of the promised pensions and entitlements,” Smith said.
The Rest…HERE
