This paper reviews Wolff's article, US Pensions: Capitalist Disaster. This article brings to the forefront the rapidly growing concern regarding unfunded and underfunded private and public pension programs. A surge in pension offerings occurred following World War II. Employees saw pensions as an attractive option for securing their future, while organizations saw it as a way to cut costs through compensation concessions and reduced employee turnover. However, mismanagement and underfunding of these programs has led the current shortfall of these programs to approximately $750 billion, in both the public and private sectors (Wolff, 2005).

             US Pensions: Capitalist Disaster.

             Article Summary:.

             Wolff's article, US Pensions: Capitalist Disaster, brings to the forefront the rapidly growing concern regarding unfunded and underfunded private and public pension programs. A surge in pension offerings occurred following World War II. Employees saw pensions as an attractive option for securing their future, while organizations saw it as a way to cut costs through compensation concessions and reduced employee turnover. However, mismanagement and underfunding of these programs has led the current shortfall of these programs to approximately $750 billion, in both the public and private sectors (Wolff, 2005).

             There are several economic challenges that result from this mismanagement of funds. First, has been the need for development of federally sponsored pension insurance, via the Pension Guarantee Benefit Corporation (PGBC). The PGBC covers shortfalls for pensioners when an organization is not able to meet their pre-agreed upon pension contracts. This money is allocated out of federal tax dollars. As such, any money that is paid out, through the PGBC, equates to either lessened public services normally sponsored by federal tax moneys or increases in taxpayers tax bills.

             The second challenge of shortfalls in pension programs comes as an economic snowball.