Liberals get so nostalgic about the
1950s American economy. Why, they ask, can't corporations be forced to
act as they did then, with their generous pay and guaranteed retirement
benefits? The irony is that many companies are in dire straits today --
becoming less competitive, facing grimmer prospects and not hiring as
many new workers as they would otherwise -- precisely because they are
stuck with the World War II-era compensation model for which liberals
pine.
Three and a half years into the Obama
recovery, America's economy is contracting again and the unemployment
rate ticking upward. Many big employers are still not expanding their
operations and workforce. The reasons for this vary by company, but in
many cases the culprit is crushing pension debt. Rather than invest in
their own operations, companies like Ford, Boeing and Verizon have been
forced to pour billions into their workers' defined benefit pension
funds just to make up for their poor market performance and keep them
afloat. And even then, some of the funds are barely scraping by.
READ MORE: http://washingtonexaminer.com/examiner-editorial-antiquated-pension-plans-weigh-down-u.s.-companies/article/2520517?custom_click=rss&utm_campaign=Weekly+Standard+Story+Box&utm_source=weeklystandard.com&utm_medium=referral
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