To the rest of the country it may seem like strange bedfellows: a state in the heartland of America on a first name basis with the world’s second largest economy. But for the past 30 years that has been the case between Iowa and China.
Since 1983, Iowa has been in a formal Sister State relationship with Hebei province, China.
While vastly different in language, culture and size—Hebei is 24 times bigger than Iowa in terms of population (72 million vs. 3 million)— over the years the cooperative agreement has fostered friendship, understanding and trust as well as exchanges in education, culture and, importantly, trade. Read more
I would be the first to agree the U.S. retirement system is not perfect. More Americans need access to retirement plans and those who have plans, need to save more. There is no question improvements should be made. But that doesn’t mean we need to throw the baby out with the bath water.
Far too often, critics ignore the benefits of the current system. They instead point to losses during the financial crisis when equity values plunged; overlooking the fact that account values for the majority of those who have continued to contribute now exceed the highest balances prior to the market downturn.
Some critics argue the answer is to do away with defined contribution plans and go back to defined benefit pension plans—but that oversimplified and unrealistic answer ignores the fact that global competition puts great pressures on most employers today regardless of size. In this environment, defined benefit pension plans create financial obligations on employers that, for many, are just not sustainable. Read more