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You are here: Home / Politics / The Pension Crisis

The Pension Crisis

by John Cole|  May 16, 20053:11 pm| 2 Comments

This post is in: Politics

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George Will gets it:

In what is perhaps anachronistically called the private sector, Standard & Poor’s recently reduced its rating of General Motors’ and Ford’s bonds — nearly a half-trillion dollars of debt — to junk status, largely because of upward spiraling legacy costs. But, then, to what extent is there a really private sector in an economy that socializes huge obligations through the PBGC?

Bingo.

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2Comments

  1. 1.

    Shawn

    May 16, 2005 at 4:43 pm

    Funny, I was thinking the same thing the other day when you first posted the story. Whatever it is, it ain’t free enterprise anymore. Good catch!

  2. 2.

    JKC

    May 16, 2005 at 10:07 pm

    The rules of the economic game have fundamentally changed, I think. I don’t think this is the fault of liberals or conservatives, either: maybe we’re seeing the next step in the evolution of capitalism.

    One has to wonder, though, if the American Dream of one’s children doing better, is dead.

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