South By North Strategies, Ltd.

A Changing Retirement System

A recent report on the challenges facing Americans nearing retirement age featured the perspective of John Quinterno of South by North Strategies, Ltd.

John Quinterno of South by North Strategies, a Chapel Hill, N.C., consulting firm that studies the labor force, says the economic downturn exposed new risks in how Americans plan to support themselves in retirement. The country, he says, has switched from relying on the solid “three-legged stool” of pensions, Social Security and personal savings to a stool supported by Social Security and two wobbly legs, 401K funds and home equity.
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“We’ve run an experiment where we’ve radically changed the system we used to finance retirements from more of a social insurance model to one where individuals are responsible for their retirement,” he says. “We’ve transferred the risk from institutions to individuals, and many folks are coming up on the wrong side of the situation.”

Around The Dial – December 13, 2011

Economic policy reports, blog postings, and media stories of interest:

• Fed Watch unpacks demographic claims about labor force participation.
• Naked Capitalism lists “dog whistle economics’ code words.”
• Paul Krugman worries about European democracies.
• Robert Reich yet again shakes his head at Wall Street.
• Edward Luce analyzes the sad state of America’s job market.

Not Quite What You Think

Working Economics points out that the recent drop in the national unemployment rate is due in large part to alarming drops in the labor force participation rates of all worker groups except for those those without high school diplomas.

Unemployment In NC: Gender Differences

A research note from the NC Budget & Tax Center analyzes differences in unemployment rates between male and female workers. From the note …

The official recession period may have disproportionately impacted men, but the official economic recovery has hit women hardest. Whether the economy is in a recession or recovery period is determined officially by economists at the national level and reflects how the economy, not families, are faring.

Around The Dial – December 12, 2011

Economic policy reports, blog postings, and media stories of interest:

• Random Samplings looks at the level of child care provided by fathers.
• Citizens for Tax Justice reports on “corporate tax dodging.”
• Heather Boushey explains why “economic inequality is not sustainable.”
• E.J. Dionne sees a “New Square Deal” from president Obama.
• Kevin Drum sees “crocodile tears from the credit card industry.”