The Renwick Gallery, a part of the Smithsonian Museum, Washington, D.C., January 4, 2019 (Image: bakdc/shutterstock.com).Public Pensions and Social Security: Dinosaurs and Debt
Public pension systems and Social Security were built decades ago, under very different economic and demographic conditions. Alas, our political institutions are lousy at modernizing the system—even when ruin is just around the corner. A few quick fun facts: Public Pensions Andrew G. Biggs (American Enterprise Institute) reports that state and local pensions systems aren’t just woefully underfunded; they’ve also come to pose much graver risks to state and local budgets. First, pension assets are now about 143% of state and local outlays, up from 49% in 1975. Thus, it’s become three times more expensive for legislatures to amortize funds in down years.…
