Learning from Detroit
The public pension crisis must be solved
Amidst the crumbling buildings and despair plaguing the city of Detroit, it’s easy to dismiss the bankrupt city’s fate as a freak event. However, other states around the country are facing the same public pension problems that devastated the “arsenal of democracy.”
Though public pensions are not technically the city’s largest financial problem (health care burdens are greater), the Economist argues the pension payment structure is especially worrisome. If courts rule that pensions must be treated as contracts, states have very little flexibility in modifying them. This makes it very difficult to undo the irresponsible promises of past politicians.
The pension crisis wasn’t unexpected either...
Read the full article at Communities at WashingtonTimes.com.