“Americans for Prosperity” Alaska director Bethany Marcum recently opined that defined-benefit pension plans for state public safety — and, by inference, other public service staff — would be a financial disaster for Alaskans. It seems incongruous that so many organizations with names suggesting they are advocates for American values and prosperity almost always oppose any prosperity for middle-class citizens — unless it’s more of the “trickle-down” stuff. Funding schemes and taxpayer dollars appropriated for large corporations, contractors, investors seem to sail through the approval process, but plans and benefits for everyday people are just too expensive.
The truth is that Alaska and the rest of the nation are headed for a serious economic and social crisis, as more of the workforce enters retirement years without adequate retirement funding. They were supposed to save their money and invest in their 401(k) plans. But that scheme has not worked.
Working folks affected by relatively low and stagnant wages, fluctuating employment, high inflation and the growing needs of the children they created to build America, just do not have enough extra nickels and dimes to invest in the stock market and cryptocurrency. Instead, they invested their money on housing, food, education, heating and gas and other “luxuries.” Even the few who were able to invest larger sums in 401(k) schemes still have built balances not even close to what will be required to fuel their senior years. Shame on those who took a vacation or bought a new truck.
Social Security and Medicare will eventually be insolvent and will not be able to sustain already-meager benefits. Not everyone will be able to work until age 75.
Alaska’s economy will continue a move toward stagnation if it cannot attract and retain sufficient qualified workers for public safety, education and other important jobs needed to keep the place going. We need leaders who can see that.
— Mike Fetzer
Anchorage
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