There’s an article at The Guardian on the pension cliff the U. S. is facing that you might find worth reading. It’s not just public pensions that are problematic. It’s that Americans just haven’t been saving enough and the condition has persisted for a very long time.
Social Security retirement benefits were never intended to provide a prosperous retirement, merely to prevent absolute penury in old age. Although many in my parent’s generation could depend on company or union pensions in their old age, that day has long passed. When he died at a relatively young age and far from old, my dad had nothing set aside for his retirement and with multiple kids to put through college few prospects for doing so. I presume that he intended to work forever but when he died that left my mom in something of a fix.
I’ve already argued my opinion here: Social Security is here to stay for a multitude of reasons that are not merely political. Not only do I think that it’s impractical for most people to save enough to avoid penury in old age (do the math: assume less than 1% return on your savings) I think it would be disastrous for an economy that is largely dependent on consumer spending. Sure, there would be more saving. What guarantees that would be invested in the U. S. of A.?”
However, let’s turn to another question and just in time for President’s Day! It is time to revisit presidential pensions? I think it is.
The move towards granting former presidents substantial pensions began when U. S. Grant died destitute largely through having made bad investments. His widow was left with very little other than the royalties for his memoirs, paid generously by Sam Clemens, the former president’s friend and publisher.
It’s a lot different today than it was 150 years ago and former presidents earn millions through book sales and the modern day equivalent of the 19th century lecture circuit. They don’t really need us any more. Add to that few of today’s presidents are exactly paupers when they enter the presidency. Seeking the presidency has never been more of a rich man’s game than it is right now. Why pay them a pension?
