An article in the IBT reports that Blackrock CEO Larry Fink sees the biggest problem with our economy being underfunding of US pensions. Specifically he feels the shortfall is hanging over the economy and will eventually cause it great harm as people live longer and the pensions can't cover their benefits. He also claims that fixing this will help solve our unemployment crisis as resolving it will lead to more growth.
While I am sympathetic to concerns about deficits and underfunding and agree it is important, I think it is not the primary concern in the near and medium term. In fact, I believe that it represents (partially) a symptom of the larger unemployment crisis. Less workers and growth means less funding for pensions. Fix that and the problem becomes easier to solve.
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