Source Pravda.Ru

USA marches straight into pension poverty

Well-known American economist, trader and writer Charles Hugh Smith is not confident of the pension future of the United States.

According to Smith, the United States may enter the era of pension poverty.

The biggest problem of the existing pension model in the United States is the fact that it has not been revised for a very long time. The plan that was developed several decades ago did not envisage economic realities that the country is facing today.

Also read: 22 Statistics About America's Coming Pension Crisis That Will Make You Lose Sleep At Night

"The core problem with pension plans is that the promises were issued without regard for the revenues needed to pay the promises," - he wrote on his blog in the article "The Coming Era of Pension Poverty."

The economist emphasized that the state did not suggest that the growth of debt to GDP, increasing tax payments and unemployment would be so high. Therefore, the future savings of Americans are at risk of being "frozen".

"Common sense suggests that public employee pension benefits should be tied to the revenues required to pay them and the rate of low-risk returns on pension funds. If common-sense is "union bashing," then we not only have a pension-funding problem, we have a propaganda problem," the author wrote.

Pravda.Ru

Read article on the Russian version of Pravda.Ru

Comments
South Korean President finds DPRK people eating sturgeon at fancy restaurants
NATO to strike Russia through Suwalki Corridor
Sexual abstinence more harmful to women
Russia exposes audio recording proving Ukraine's implication in MH17 disaster
International Peace Day: We demand Peace!
MiG-31 supersonic fighter jet crashes in Central Russia, pilots eject
MiG-31 supersonic fighter jet crashes in Central Russia, pilots eject
MiG-31 supersonic fighter jet crashes in Central Russia, pilots eject
Kremlin reacts to Russian model poisoning in Salisbury
Former GRU officer exposes two Russian Salisbury spies
Chief of Russian National Guards threatens to make juicy meat chop out of Aleksei Navalny
Chief of Russian National Guards threatens to make juicy meat chop out of Aleksei Navalny
Sexual abstinence more harmful to women
Can Russia oppose coalition forces in the Mediterranean?
53 million Russians may lose their jobs within a few years
Can Russia oppose coalition forces in the Mediterranean?
Can Russia oppose coalition forces in the Mediterranean?
USAF to use F-35B Lightning II against Russia's Su-57 and S-400 systems in Syria?
Can Russia oppose coalition forces in the Mediterranean?
Can Russia oppose coalition forces in the Mediterranean?
The Globalization of the Law: A chimera