Downsizing Risks

Everyone is talking about the economy. While downsizing government and reducing competition by no longer offering tax breaks and stimulus packages to failing businesses sounds like the best plan; government assistance is needed for a complete recovery.

Recently several thousands, if not millions of college age students went into the medical profession. The media speculated Baby Boomers will increase health care exponentially. Currently when a business goes bankrupt pension funds are included as business capital and primary loan holders are entitled everything owned by the corporation or company. Either one of two things must happen to ensure retirees' have money to spend on health care.

Government should change the law. Primary lenders on pension funds are employees. Their wages were garnished every paycheck for the purpose of establishing money for retirement. This action is a loan. People lent the money so it will be returned one day. This is not a conditional circumstance like investing in stock.

Another option is using stimulus packages to substitute lost pensions when a company goes under. Several people dedicated twenty to thirty years of their life to a company and are getting ready to retire. If a corporation declares bankruptcy thousands of retirees will lose spendable income, because they will not receive a pension. Without spendable income everyone will want government aid or find cost effective solutions. Meanwhile, graduating medical students create a surplus workforce. This means people are paid less, because doctors, nurses and pharmacists are replaceable. People fortunate to find work will not be making $30 an hour. Normal wages will drop significantly. Hospitals can hire more people, yet the promised lifestyle is no longer a reality.

The best solution is to combine both methods. The company divides and pays out one lump sum to employees with a pension and government offers additional support, similar to the Black Lung Fund for Miners.

With this plan retirees buy motor homes, go on vacation, pay health insurance, get regular checkups, buy medicine, pay caregivers, have nurses make house calls and move into a retirement community. Graduates are content with the financial reward of their decision thus preempting a second wave of recession caused by unemployment.

What are the wages of future medical professionals? It is difficult to say. Whenever job openings become a media event a surplus workforce is created. Computer companies were understaffed for a long time. After everyone knew it was stable employment, many people gained technical degrees. Total independence became an average wage with overtime to pay bills. Several more gained training and companies started saying they are not hiring. Doing what you really love or would do in your spare time is an advantage. Going to work everyday is rewarding even if it doesn't pay well.

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