Sunday, March 6, 2011
No longer the new generation, but the lost generation
Youth unemployment is at an all time high, but that is not the issue here. The issue here is that changing realities means that the defined benefits of the past are no longer available for the current crop entering the workforce. However, there are still massive liabilities that needs to be paid off for the older generations who are just entering retirement age whose pension and meds benefits will have to come from somewhere. At some point within the next 10-20 years there has to be a reckoning where some sort of a compromise will be reached. I sure as hell do not want to pay into a system that is not going to support me or is going to give me vastly reduced benefits when I retire. Now as people pay into this they're going to see what I see and while nobody wants to throw any old people out on the streets, nobody can really afford to pay these generous pensions while raising kids at the same time. What I'm predicting is a lot of renegotiation and a lot of firms get crushed and bankrupt because of their commitments. GM is not the first, and it will not be the last. So what is there to do?