Q & A | 06/25/2008 12:00 am

The Coming Boomer Retirement Crisis

By The Staff at wowOwow

wOw: Does nuclear power have an essential role to play in the environment?

Nocera: It does. It is so much cleaner than coal, doesn’t consume natural resources and (yes, I know this is contrarian) is pretty safe, all in all. But nobody wants a nuclear plant in her backyard, which is why even though nuclear technology is far more advanced than it used to be, there hasn’t been a new plant built in this country in decades. And one huge problem has never been solved: What do you with the waste material? Until we have a decent solution for that, nuclear power will never gain broad acceptance and will have to continue to live with environmentally hazardous coal-fired power plants.

The emphasis on making money can seem soulless in some ways. But the potential is so huge, it is hard not to be optimistic about China's future.

wOw: We all remember being told that "greed is good" on Wall Street. In business, if greed isn’t good, what is?

Nocera: Let’s be honest here. The prospect of wealth is one of the world’s great motivators. That’s why capitalism works — as entrepreneurs seek to get rich, they also wind up employing people, creating innovative products and adding to economic growth. We shouldn’t deny or besmirch the desire to get rich; it has enormous social benefits.

But people who care only about wealth and nothing else will almost always fail. Along with it has to come a desire to make the world a better place (which is how most entrepreneurs view their innovative new product), a yearning to create a decent workplace and a need to make others wealthy as well, including shareholders. Put that together and you have a potent combination. Without those elements, you have a business that will one day fail, or at least falter.

Read more about: China, Economy, Joe Nocera, Money, New York Times, Q & A, Retirement

56 Reader Comments (so far…) Sign In or Register to comment

Fabulous conversation. Thank you for this, can’t wait to get the book. In another article it was discussed that the ‘have nots’ in China were starting to get restless, and many former farmers are migrating to the cities for better jobs. If the have nots start to protest more, as many people are protesting pollution, it would seem that China is heading for a lot more social problems. They have been on the fast track and moving so quickly that a collision is going to happen. They are on a natural resources hunt all over the world. Doesn’t it appear that they have problems that can cause slowdowns?

By Frannie Em on 06/25/2008 12:30 am

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Biotechnology and life sciences will be huge this century. Innovation, and a commitment to biosciences and medical research are a few ways that America can compete. There should be some amazing medical discoveries in the years to come, such as progress in exploring how people can self-heal through the power of the mind, genetic engineering, and so forth . As with many of the other societal ‘crises’, it’s a race against the clock, and hospitals that do medical research need as much support as they can get, whether through government contributions or from public donations.

By James the Game on 06/25/2008 12:41 am

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Insightful interview. Thanks for the comments By James Gemmell on a possible solution for the future of our country. I will pass it along to my grandchildren.

The life sciences I have been experimenting with for years. I learned through reading, and experiments I did with the power of thinking it, so therefore it is, or becomes. I just forget to keep doing it, and get caught up in life.

By Jeanette Foresta on 06/25/2008 9:05 am

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You’re welcome.

By James the Game on 06/25/2008 4:19 pm

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“If you ask me why didn’t I understand that any alternative to cutthroat capitalism and a society based on inequality and competitiveness not only wasn’t going to work but was going to turn into some horror, either of despotism or of economic catastrophe, all I can say is that lots of people didn’t understand this.” Susan Sontag

By phyllis Doyle Pepe on 06/25/2008 9:11 am

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Shanghai: Its name literally means, “on the sea.” Hardly more than 150 years ago it was a fishing village on a mud flat. Then the British won the battle to share the joys of opium with the Chinese. The Treaty of Nanking in 1842 opened the fishing village to foreign trade, and the mud flat of the Huanpu River became a port, drawing in opium and dispersing it to the mainland, gathering up products of the interior and sending them out on ships—tea, silk, porcelain and even workers kidnapped for the railroads and mines in the American West(hence the word “shanghaied). This Paris of the East—or Sodom and Gomorrah—abruptly devolved into a drab backwater after Mao’s peasant army took over in 1949. About 15 years ago, China’s leaders decided to make the city the showcase of the new economic policy, and Shanghai, money capital of China, burst into being.

By phyllis Doyle Pepe on 06/25/2008 9:12 am

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Phyllis Great synopsis. There is one key that should be mentioned as well. It was Taiwanese businesses that opened factories in China because they could get a disciplined and inexpensive work force. With the permission of the Chinese government, they were the beginning of the boom. The invested quite a bit there, and once other nations saw that it was safe, they jumped in for the inexpensive work force. I think in many ways China is shooting themselves in the foot by overreaching and overlooking building standards, resulting in the problems we saw happen when the earthquake hit. The pace at which they have grown has caused tremendous pollution. They say the rivers run black. The general population is up in arms over the situation, and they think it is too prideful of the government to do this.

By Frannie Em on 06/25/2008 12:28 pm

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“Zigging when the crowd is zagging” is the most important thing to learn in investing, and the scariest. Thank you for a most insightful conversation. Perhaps I will buy the book for my 21 yr. old grandson.

By Diana T on 06/25/2008 9:13 am

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How can we expect the majority of Americans to be financially secure in retirement when the cultural ethic is shopping until dropping? Rather we should again be a savings and investment society. For Americans I don’t think there’s a more economically braindead policy than our support of globalization. Really pretty pathetic the common response to the loss of decent paying industrial jobs to moving production overseas is to open more casinos! My elementary school in the mid to late 1940s had a savings program integrated into the arithmatic program. Once a week we deposited at least a dime in class in individual accounts set up by a local bank. The program’s motto was “Save your dimes and watch your dollars grow”.

By Dr. Mark Klein on 06/25/2008 9:41 am

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Casinos. Yep. That’s the problem.

By kermie b on 06/25/2008 1:54 pm

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ki b, This is the first time Dr. Mark has been right. Amazing! Don’t make fun of him this time.

By beverly linens on 06/25/2008 5:07 pm

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Wow, of course you are going to push me off the fence I have been sitting on for some time. I will purchase this book to learn more about this deeply personal subject to me. Being a baby boomer, I realize these issues are staring me in the face and I am not sure which way to turn. As an artist, I have always felt the person to invest into was myself. Creating is as important to me as breathing. Many questions enter my mind now with economic issues rising so quickly in this country. I would hate to think that this world could live without art. But when there are so many major issues to solve on this planet, what is the point? And if business has to be irresponsible to succeed, then I want no part. Thanks for showing this book.

By Peggy Sue on 06/25/2008 10:01 am

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The reality of savings measurement in the US is that it is very flawed, and significantly underreported. It is inconsistent with the dramatic title of “The Coming Boomer Retirement Crisis,“ but nevertheless is a fact, not a guess. The author’s assessment of the fact that Medicare payments are a problem is correct, but there is time to correct the flaws in the system before it goes bankrupt, and the likelihood is high that it will be a part of the overall health care system overhaul, high on both candidate’s list of priorities. Chinese competition is real, but should not be feared. Competition for resources is an opportunity for entrepreneurial focus to alternative energy, already in force in the Silicon Valley and likely to grow as prospects for significant wealth in this area are realized. As alternative energy sources are adopted, competition for “old” energy will dissipate, and prices will equalize. Nuclear energy is clean and relatively safe, until the consideration for storage of nuclear waste is considered. http://www.history.rochester.edu/class/EZRA/ Until these problems are solved, it is an unacceptable alternative to any energy source. Baby boomers, particularly women who live longer and earn less than men, do need to learn the precepts of long term investing. That much is correct, and, while it is now not a crisis, it should certainly be a high priority. Given that, caring about wealth is a positive thing that I would encourage all women over 40 to do for themselves.

By K O on 06/25/2008 10:29 am

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Kitty, I’ve missed seeing you in print for a few days; glad to see you back. With your qualifications, you always have very informative imput to these conversations. Thank you!

By Diana T on 06/25/2008 11:50 am