I’m basically hostile to the whole idea that what we need is a third way, some coalition of centrists organized around the idea of a set of agreed-upon, common-sense compromises.
That said, Third Way is out with memo which describes their centrist compromise vision. I won’t recap the whole thing, you can read it here:
What strikes me about some of these ‘ideas’ is how they basically simply recapitulate the bad status quo.
For example, number 4 (Boomer Corps) is offered as a solution to the problem that many baby boomers can’t afford to retire. The solution? Boomers can keep working at part-time jobs for low wages after they retire! Drum roll, problem solved!
Similarly, number 11 recognizes that Social Security isn’t an adequate pension and that most people have little else. Their proposal? Force employers to fund a portable pension plan at the rate of $0.50 per hour worked. The federal government would match the contribution at $1 for every $3 contributed by the employer. Thus workers would ‘save’ $1,333 per year more toward their retirement, which savings would of course almost certainly come out of their wages, since employers aren’t stupid and can understand ‘total compensation’.
A quick back of the envelope calculation predicts this would increase someone’s retirement nest egg by about $100k, assuming constant employment for 40 years and 4% annual returns.
Will $100k make a difference to someone’s retirement 40 years from now? Who knows. But if the problem is that Social Security isn’t enough, why not, you know, increase Social Security?
Anyway, what do you think? Are there good ideas here?