The subtitle of this book by Sylvester J. Schieber is “The Unraveling of the U.S. Retirement System.” The book is neither a fun nor easy book to read (unless you are a compulsive accountant). However, you should consider the book if you want to know about the history and current status of Social Security and other retirement plans. Sadly, I must say the book does not have easy answers for how we can get our politicians to address some daunting problems. The dust cover explains, “Social Security is projected to deplete its funds in the 2030s. Pensions from previous generations have either disappeared or been completely reengineered…Americans are faced with the conundrum of how to pay for a growing retired population with dwindling financial resources.” The author believes privatizing part of Social Security would be a good first step, but has given up on that idea because politicians have made it a toxic idea.
I consider the most important part of the book to be a series of quotes made by Barack Obama at a roundtable discussion with the editorial board of the Washington Post four days before his first inauguration. “As soon as the economic recovery takes place, then we’ve got to bend the curve and figure out how we get federal spending on a more sustainable path…We are going also to have a discussion about entitlements and how we get a grasp on those…As bad as these deficits that have already been run up have been, the real problem is with our long-term deficits, actually, have to do with our entitlement obligations…So we’re going to have to shape a bargain. This, by the way is where…some very difficult issues of sacrifice, responsibility, and duty are going to come in because what we have done is kick this can down the road and we are now at the end of that road. We are not in a position to kick it any further…I have told my folks, to some consternation on their part, that we have to signal seriousness in this by making sure that some hard decisions are made under my watch and not under somebody else’s because the usual game is to say, ‘well, here’s what is going to happen but, by the way, it just happens to start in the ninth year from now.’ What we have to signal is that we are willing to make hard decisions now.” (This passage is on pages 373-374 of the hard cover book I read. I’m providing a link to the full recorded statement.) Continue reading