One of the main problems being discussed in the US recently is the problem of underfunded pensions and sky rocketing benefit expenses. Old line American companies (the same is true elsewhere is G8 countries) are now burdened with pension costs that their competition does not have, but these cost are higher their obligations have went on longer than these plans had allowed for.

It really doesn’t matter if the companies poorly planned, or the insurance/investment industry mis advised, but there are at least problems that will become painfully obvious in the days ahead. First, old line companies, burdened by benefits are uncompetitive with their newer or less obligated competition. Second, a society that ignores social services and leaves it to business, will either have a failing social systems or failing businesses. Society need to establish government funded safety nets that work to make life in a world of temporary jobs, managable and rewarding to both the worker and investors.

Imagine a US where employers paid only hourly wages or salaries employees, no additional employment taxes or benefits, just a flexible labor force. This is the best way to help business compete against remote nations and their cheaper labor, right here at home. Imagine, a simplified, flat tax on indiduals with household and personal exemptions, generates the money for a social system, that trains and maintains a flexible workforce, for a newly unburdened and engergized business sector.

ah, the dream continues.