If you really want to be scared, you need to listen to the types of people who are now sounding the alarm bells. Im a libertarian, and its not a surprise to hear me warn about the ill effects of government spending.
But listen to what former California Assembly Speaker Willie Brown, one of the states best-known liberal politicians, recently wrote in a San Francisco Chronicle op-ed:
“The deal used to be that civil servants were paid less than private sector workers in exchange for an understanding that they had job security for life. But politicians–pushed by our friends in labor–gradually expanded pay and benefits…while keeping the job protections and layering on incredibly generous retirement packages…This is politically unpopular and potentially even career suicide…but at some point, someone is going to have to get honest about the fact.”
Democratic state Treasurer Bill Lockyer said at a legislative hearing: Its impossible for this Legislature to reform the pension system, and if we dont it will bankrupt the state,
The chief actuary for the California Public Employees Pension System called the current pension situation unsustainable.
This is from a recent Economic Policy Journal article: According to the chairman of New Jerseys pension fund, the US public pension system faces a higher-than-expected shortfall of more than $2 trillion.
The only hope to rein in the current problem is for wider agreement that the days of enriching public employees must end. That means making inroads with liberal Democratic politicians, many of whom must realize that the future of other programs they support are imperiled by shaky finances and pension obligations that suck the life out of government budgets.
This blog post originally appeared on National Review’s New Geography.