The debt monster hasn’t gone away. It hasn’t been tamed. It is growing, lurking, just waiting for interest rates to rise. But right now, few are concerned.
In the words of Yoda, “You will be.”
(From The Daily Caller)
In the U.S., public-sector pensions have proven to be a huge problem for state budgets. The Competitive Enterprise Institute (CEI) found Sept. 29 that unchecked union power has prompted unsustainable member benefits, perhaps most notably rapidly expanding pension obligations. With the threat of striking workers and government shutdowns, politicians rarely stand up to organized labor.
The Commonwealth Foundation found Pennsylvania alone has $50 billion in unfunded pension liabilities. A significant percentage of school budgets across the country often go to huge pension funds. Teachers unions, among some of the most powerful labor groups in the country, make sure pension reform is incredibly difficult.