Public Pensions

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...Worse, it will be a local mess. Unlike the last financial crisis where one could direct anger at
faraway politicians and bankers seen only on TV, this one will play out close to home. We’ll see
families forced out of homes while neighbors collect six-figure pensions. Imagine local elections
that pit police officers and teachers against once-wealthy homeowners whose property values are
plummeting. All will want maximum protection for themselves, at minimum risk and cost.



They can’t all win. Compromises will be the only solution – but reaching those unhappy
compromises will be unbelievably ugly. ...



... Residents of Allen don’t have to worry about
legacy pension issues, because the town is growing faster than whatever pension issues they have... The big inner cities have these monstrous legacy
pension problems; and the suburbs, which have prospered on the back of the growth that has come
from the big cities, feel no obligation to pitch in and help....



...What about subway service in New York City? The system is fraying under record
ridership, and trains are breaking down more frequently. There are now more than
70,000 delays every month, up from about 28,000 per month five years ago. The city’s
soaring pension costs are a big factor here as well. According to a Manhattan Institute
report by E.J. McMahon and Josh McGee issued in July, the city is spending over 11% of
its budget on pensions. This means that since 2014, New York City has spent more on
pensions that it has building and repairing schools, parks, bridges and subways,
combined.