Last night we heard our president’s first state of the union address. Overall, I think he did a reasonable job of touching on the issues that are currently at hand. Whether he can action his own rhetoric is a different story.
There is one point I think requires clarification. The president referenced the common theme that for most Americans their largest asset is there home. I don’t think that is the case. I think the largest asset held out for by most Americans is the implied asset that they have in social security benefits or their state sponsored pension plans upon retirement. This is a huge issue facing most Americans – if not now certainly in the near future.
We see that most states are struggling with how to meet their obligation to state employees and we know that social security is on the brink of bankruptcy. While I don’t believe that we can solve these problems to the original commitments, we need to proactively address these issues in the context of solving our national financial predicament.
It is imperative that both federal and state governments take logical, practical and pragmatic solutions to these issues. They are some of our most daunting financial burdens and responsibilities. You will see from my previous blogs that I do not believe the California solution is either logical or pragmatic. I will soon write about the 2/2/2 Plus Plan being put forward in Colorado under Senate Bill 1. These are not solutions. They are political posturing that puts the burden somewhere down the road and around the corner. Out of sight for the next generation to deal.
This is not leadership. Nor is this responsible behavior by the adults at the table – today. Our politicians boast the intellect and capabilities of our citizens. We need to start making “us” responsible. Yes, we run the risk that putting responsibility for retirement in the hands of our citizens may find them back at the well in the future when their investments have performed poorly. But we cannot “guarantee” them a just reward at the expensive of every citizen. With citizenship comes responsibility. That is the American way.
BA
