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>The choice is raising taxes, reducing spending elsewhere, or demanding workers give up the pensions they were promised. Why is there a fourth option for banks
by omegaworks 8y ago
>The choice is raising taxes, reducing spending elsewhere, or demanding workers give up the pensions they were promised.
Why is there a fourth option for banks and not for pensions? Why is Quantitative Easing left out of this discussion?
- pathseeker 8y agoQuantitative easing was not for banks. Also, the bailouts to which you refer were not free money, they were loans with low interest rates that have been paid back. The pensions don't have enough money so easy access to debt does nothing to help them solve that problem.
- omegaworks 8y ago>the bailouts to which you refer were not free money, they were loans with low interest rates that have been paid back. Any loan at an interest rate lower than the rate of return that can be earned by investing that money is essentially free money.
- betterunix2 8y agoQE is not something municipal governments can do, so it is irrelevant to this discussion. Since you brought it up, it is worth mentioning that QE actually contributed to the pension shortfall because pension funds suffer when interest rates are low.