The problem with pensions did not start with the advent of pension plans. The original pension plans (including Social Security) didn't qualify as Ponzi schemes because they were designed in a way that very few beneficiaries survived well into their retirement years—and many workers died before they retired. This imbalance of payers vs. payees led to immense piles of positive cash flow. 

The problem wasn't just that Americans started living longer. The problem occurred when benefits were extended instead of being cut back to reflect the extended life expectancy of workers. These two factors combined to transform pension plans from staid employee benefit plans to outright Ponzi schemes.

That needs to end. And we need our elected officials to recognize this. And the sooner the better.

The first step might be to outlaw pension plans from this point forward. This wouldn't eliminate existing benefits, but just prohibit any future employees from participating. Eventually, as existing beneficiaries pass on, the liabilities of pension plans will diminish and eventually the plans themselves will die out.

Most private companies already have discovered the danger of the naked liability created by today's pension plans. The evolution from defined benefit to defined contribution is nearly complete in the private sector. Today, only very large or very small companies have pension plans. A congressional act to outlaw pension plans will impact few private employees.

For public employees, well, that's a whole 'nother kettle of fish. Is it realistic to allow individual states to decide to go the way of Greece, Spain and perhaps other Eurozone failures? Do you think if California goes bankrupt, the federal government won't be pressured to bail it out?

I'm sure the farmers in Iowa, Kansas and Nebraska wouldn't mind helping out the folks in Hollywood and Silicon Valley.