In theory, unions should be leading the charge for more conservative accounting standards; after all, it is their job to make absolutely sure that their members will be able to count on those pensions in their old age.
In practice, unions often have other priorities. Witness Detroit, where the unions did nothing to stop the absolutely grotesque mismanagement of the city's pension funds.
In New York, reports the Times, the unions don’t want to move to more conservative pension accounting, because if they do, the city will be required to put more money into the pot . . . and the taxpaying public might mobilize against the union workers who put them in this spot.
Of course, putting it off will ultimately just make the problem worse; the inexorable logic of compounding is just not very forgiving.
Over the next few decades, we are going to come face to face with more problems like Detroit’s: pensions that must be paid, legally and morally, but cannot be paid while still offering an acceptable level of government services.
Taxpayers’ wallets are not an inexhaustible resource, and cities and states that demand too much will see their citizenry depart for more fiscally responsible climes.
In practice, unions often have other priorities. Witness Detroit, where the unions did nothing to stop the absolutely grotesque mismanagement of the city's pension funds.
In New York, reports the Times, the unions don’t want to move to more conservative pension accounting, because if they do, the city will be required to put more money into the pot . . . and the taxpaying public might mobilize against the union workers who put them in this spot.
Of course, putting it off will ultimately just make the problem worse; the inexorable logic of compounding is just not very forgiving.
Over the next few decades, we are going to come face to face with more problems like Detroit’s: pensions that must be paid, legally and morally, but cannot be paid while still offering an acceptable level of government services.
Taxpayers’ wallets are not an inexhaustible resource, and cities and states that demand too much will see their citizenry depart for more fiscally responsible climes.
No comments:
Post a Comment