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No, just anecdote from my own lifetime and observations. I would just say the 2nd paragraph of https://en.wikipedia.org/wiki/Legacy_costs https://en.wikipedia.o
by throwaway5752 7y ago
No, just anecdote from my own lifetime and observations. I would just say the 2nd paragraph of https://en.wikipedia.org/wiki/Legacy_costs https://en.wikipedia.org/wiki/Legacy_costs is essentially the same thing I'm talking about.
- dredmorbius 7y agoThanks. The cited Lincoln Institute of Land Policy study also addresses this directly: "Pension Legacy Costs and Local government Finances" https://www.brookings.edu/wp-content/uploads/2016/06/pension-costs-local-finances-gordon.pdf https://www.brookings.edu/wp-content/uploads/2016/06/pension... (PDF) The similarity (referenced by the Wikipedia article) to technical debt was what I'd been thinking. More generally, markets and social-political systems have trouble recognising long-term risks and liabilities generally. Both are forms of debt. See also Adam Smith's growing vs. declining nations discussion in Wealth of Nations.