Posted by WARREN MOSLER on January 27th, 2012
This is from modest returns and low rates causing ‘savers’ to have to pony up more to provide future nominal incomes.
And it’s a drag on aggregate demand which should be a good thing, as it means we can have lower taxes for any given size govt.
But instead, of course, we let it keep unemployment high and the output gap wide in general.
Pensions & Investments News Alerts:
Verizon to dial up $1.26 billion for pension plans
Boeing to add $1.5 billion to pension plans in 2012
Raytheon, Lockheed Martin to add billions to pension plans
Ford to roll out $3.5 billion in pension contributions