Tuesday, March 26, 2013

There is No Cumulative Safety Net for the Armed Services



I walked into the Economist Buttonwood Conference to hear Mitt Romney’s chief economic adviser– Glenn Hubbard, the Dean of Columbia Graduate School of Business– bluntly claim that the nation “cannot afford a large welfare state for everyone,” underscoring the brutal political fight to develop after Nov. election day over the extent of entitlement programs like Social Security and Medicare.

More stunning yet was the revelation I had not heard previously that unlike retired workers from the private sector, there have never been funds set aside for benefits on behalf several million federal government employees, especially members of all the Armed Forces. There has never been any accumulation from their compensation monthly pay checks to trust funds for Social Security or Medicare that would protect them in retirement. This is an astonishing and expensive hole in the safety network of a significant part of the population.

To continue Reading, click here.

No comments:

Post a Comment