Solemn obligations

Here is how the pension "issue" is usually framed.

For the major corporations that still offer pensions, they are a drag on earnings growth. In the public sector, they are making every city into Detroit or Stockton, Calif., paving the road to bankruptcy.

Very large numbers are thrown around, often without context, sometimes outright fabrications. This column is not about the numbers. As a nation, we spend too much time under green eyeshades. Numbers, "just business," economics are supposed to provide definitive answers.

Of course it depends on whose numbers are used (liars figure) and there's a reason that the dismal science was once called political economy. Even at its most rigorous, economics is a brawl — and like the sums we are supposed to accept as gospel, the inputs matter (garbage in, garbage out). People are living longer! Well, not by much, it varies greatly among ethnic groups, and the ones that do live long tend to be very wealthy. Etc.

Nevertheless, a majority of the white working class — which is a majority of the electorate — believes that union thugs are bankrupting their cities and states by demanding that pensions be paid to takers on the public payroll. Republican politicians and judges are burnishing their popularity and "seriousness" by working to destroy the pension system.

In certain situations and moments, many of those thugs and takers are called police officers, firefighters, and teachers. Heroes.

The time bomb ticking in American portfolios

Once again people with 401(k)s are getting hammered by the stock market. The Dow may be up one day, down the next and up yet another day, but it’s been a bad year for most people’s portfolios. As Congress talks about long overdue regulation of Wall Street, you can bet that the artifice of 401(k)s won’t be on the table.

That’s too bad, because America is headed for a wave of impoverished baby boomers. It may not be a big one, because many will inherit the wealth of their parents. But each succeeding generation will be a little poorer. There may be more wealthy, too, but the majority will see declining living standards. It’s all so Gilded Age. And few have thought through the consequences.