What is the Public Pension Liability Crisis?

What is the Public Pension Liability Crisis?

| November 06, 2019
Share |

There are three words that don’t get mentioned very much, but they should scare the dickens out of you. Those words are Public Pension Liabilities. It’s a problem that is largely flying below the radar, but if you live in a state with a lot of public pension liabilities, it could end up like Detroit. Public pensions often end up swallowing up the state budget until there is little left over to provide basic services. A pension is a guaranteed stream of income that is paid to you either over your lifetime or the life expectancy of you and your spouse. It used to be very popular in the private sector, but they became phased out as they became too expensive. However, they still persist in the public sector. Public pensions are a great way for politicians to get elected. It’s very easy to make a promise to perpetuate lavish benefits when they don’t have to deal with the consequences for potentially decades down the road. It will get to the point where certain states will go bankrupt becaus...

Share |