3 ms·
That is not the issue this article is talking about. Public pension spending in the US is not especially low compared to the rest of the OECD [1]; as a portion
by gok 8y ago
That is not the issue this article is talking about. Public pension spending in the US is not especially low compared to the rest of the OECD [1]; as a portion of GDP it's larger than Norway or the Netherlands, which have much higher taxes.
The issue is that those pensions have been comically mismanaged; edit: and were not sustainable in the first place
[1] https://data.oecd.org/socialexp/pension-spending.htm https://data.oecd.org/socialexp/pension-spending.htm
- dunpeal 8y agoDefined-benefit pensions are economically bankrupt when lifespan keeps increasing. This has been known for decades[1] and is the reason why none of us reading this have a DB pension, except those lucky few state employees who got a sweetheart deal all those years ago. Of course, the fact these pensions were managed by state government (read: mismanaged) only accelerated the inevitable crisis. [1] https://www.investopedia.com/articles/retirement/10/demise-defined-benefit-plan.asp https://www.investopedia.com/articles/retirement/10/demise-d...
- gok 8y agoThese plans wouldn't have worked even if lifespans remained the same. Indeed, US life expectancy is actually down recently.