A Risky New World For the Workers of United States

There has been a recent announcement proclaimed by IBM, involving them freezing its traditional pension plan, changing all workers into (401k) plans by the year 2008. This was one of the many desperate attempts to get out from under mounting pension and healthcare burdens, for companies such as GM, United and Verizon.

The terms of discussion are extremely complex and difficult to comprehend. They are full of acronyms and arcane benefits terminology. Practically no one can understand them. However, their plan is simple and significant. The corporate insurance system that separated the United States from other rich capitalist nations is about to expire, causing workers, employers, and families to be at risk.

The United States has one of the smallest public welfare states in the advanced industrial world, contrary to conservative complaints. However, it is usually spent on private benefits – almost a tenth of the nation’s economy. Benefits offered to workers are extremely subsidized and controlled by the government.

If you compare America’s benefits with another rich country, you will realize that the social spending in the U.S. is slightly higher. As wonderful as this distinctive system may be, it is now in hot water. Recently, corporations have cut and restructured benefits, shifting a risk of higher costs onto many workers and their families.

To make matters worse, employers also want to cut back health insurance coverage to an even higher level. Now, nearly 23% less workers don’t receive health insurance.