Pension systems reflect financial trends from "summary" of Labor in the Age of Finance by Sanford M. Jacoby
The architecture of pension systems is a critical reflection of prevailing financial trends. The interplay between pension design and financial forces is an intricate dance, with each influencing the other in a dynamic and ever-evolving relationship. As the financial landscape shifts and transforms, so too do the structures and mechanisms of pension systems. In an age dominated by finance, the contours of pension systems are molded by the imperatives and demands of financial markets. The rise of neoliberalism and the ascendancy of finance capitalism have ushered in an era where financial considerations reign supreme. Pension systems, as integral components of the broader economic landscape, are not immune to the gravitational pull of financial trends. The shift towards defined contribution plans, for example, can be seen as a direct response to the financialization of the economy. Defined benefit plans, with their long-term commitments and liabilities, have fallen out of favor in a world where flexibility and adaptability are prized above all else. Defined contribution plans offer individuals greater c...
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