“A Trillion Here, A Trillion There”

Phil Holberton

Phil Holberton

Dedicated to helping you achieve your maximum potential

Reading Time: < 1 minutes

The late Illinois Senator Everett Dirksen is reputed to have characterized the “Great Society” fiscal policy of the 1960s with the wry observation that “ A billion here, a billion there….and after a while it adds up to real money.”   Fifty years later we add a few zeros and we’re talking trillions.   Were it just the Federal Government’s climbing debt and ongoing deficits that would be scary enough.   But before the main event of Federal meltdown manifests itself,  the opening act will be the ballooning pension and healthcare obligations of teachers, first responders and other state and local obligations.  Decades ago these employees traded lower current income for a state guaranteed retirement.  Mismanagement of these pension plans has resulted in a funding deficit which, it is estimated, to be approximately $ 4.4 trillion.

 

This may be the defining issue of our times as it will affect everyone, either as a retiree or as a younger member of the workforce paying increased taxes to make up the shortfall. An executive summary of the situation in the Knowledge@Wharton newsletter explains the limited and painful options for remedying this situation. None of them are good.  Most involve more taxes, especially on real estate, and cuts in other government services.. Coupled with an aging population that is living longer we have a Time Bomb Inside the Public Pension Plans”     Want to know what your share of the shortfall might be?   Read the article.  It may well be more than you have already put aside.

 

Plan accordingly.  As Tennessee Williams said,  “You can be young without money, but you can’t be old without it.”

Contact us Today
CATEGORIES: Economics


Set the Tone for a Successful Career

Don't let your title dictate your strategy. Rather, use these 7 steps for a smooth transition and to succeed in the most important period of your employment: your first 90 days.

As a new manager or leader, you have your work cut out for you but it's important to slow down and be strategic. Many careers get sidetracked during the first 90 to 180 days because the entry was too fast. Follow the advice in this free white paper to set the tone during your onboarding and to set yourself up for success.

Thank you for your interest! Check your inbox to confirm your subscription and receive your free white paper.