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America's Growing Retirement Crisis
In the May 2006 issue of Monthly Review, Teresa Ghilarducci titled her article "The End of Retirement," saying:
"Scarcely a day passes without a new pension nightmare: Social Security privatization," corporations ending private pensions, declining household savings, cancelled retirement healthcare benefits, and "401(k) accounts becoming '201(k)s,' " having replaced traditional pensions, defined benefit obligations fast disappearing.
These developments reflect a nightmarish reality. Today's "ownership society" forces everyone to manage their financial futures, leaving them vulnerable to marketplace uncertainties, a task few have enough expertise to handle, especially during hard times, eroding years of built up resources savagely, what older workers may be unable to recoup.
Conditions are far worse today than in May 2006. Yet Ghilarducci said "For the first time in US history, every source of retirement income is under siege: Social Security, personal savings, and occupational pensions." Also Medicare for retirees, their dependents, and the disabled, as well as Medicaid for the nation's poor - vital income-equivalent plans without which millions would be uninsured or underinsured, leaving them vulnerable to the catastrophic illness costs.
In July 2010, Professor James W. Russell, writing in Socialism and Democracy, titled his article, "Retirement Crisis in the United States," saying:
"The great 30-year experiment in 401(k) and similar retirement financing schemes that depend on stock market investments has failed. Even before the" 2008 crash, it was clear, the signs "everywhere that very few workers would be able to accumulate enough wealth through these accounts to insure" their retirement futures.
Like Russell, economist Richard Wolff explains that until 1980, each generation since the 19th century was better off financially than previous ones, including more retirement security. No longer, workers since victimized by institutionalized inequality. Examples include eroded union representation, mostly in commerce and industry, stagnant wages, weakened or lost benefits, and high-risk defined contribution plans replacing secure defined benefit ones.
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