Kenneth Anderson asks, are underfunded public pensions underfunded public pensions $2 trillion in “stranded” costs?
One question about these obligations is whether taxpayers will stick around to pay them, or instead will vote with their feet. . . . Many of these pension obligations have been incurred by municipalities and others by states, and in some cases the obligations are intertwined. But what happens if voters-taxpayers move out? The assumption has long been that taxpayers are stuck, on account of jobs and other circumstance. But query whether that is necessarily true as the baby boom generation retires.
That’s why the baby boom generation won’t ask us. This will be will “resolved” by the stroke of a pen — the same moral hazard pen that bails out everything else; and why should state governments be worse than all the other failed states of corporate America?
Federalization, people. We can run, but we can’t hide. (Via Insty.)