Pensions Drive Global Debt Three Times Higher Than Previously Estimated

[mick silver]

Pensions Drive Global Debt Three Times Higher Than Previously EstimatedSource: Against Crony Capitalism (http://www.againstcronycapitalism.org/2016/03/pensions-drive-global-debt-three-times-higher-than-previously-estimated/)

http://www.againstcronycapitalism.org/wp-content/uploads/debt-c-c-565x368.jpg
The debt monster hasn’t gone away. It hasn’t been tamed. It is growing, lurking, just waiting for interest rates to rise. But right now, few are concerned.
In the words of Yoda, “You will be.”

(From The Daily Caller)
In the U.S., public-sector pensions have proven to be a huge problem for state budgets. The Competitive Enterprise Institute (CEI) found Sept. 29 that unchecked union power (http://dailycaller.com/2016/03/18/pensions-drive-global-debt-three-times-higher-than-previously-estimated/A%20big%20problem%20in%20this%20regard%20is%20publ ic%20sector%20unions%20have%20a%20lot%20of%20power %20they%20can%20leverage.%20With%20the%20threat%20 of%20striking%20workers%20and%20government%20shutd owns,%20politicians%20rarely%20standup%20to%20them .) has prompted unsustainable member benefits, perhaps most notably rapidly expanding pension obligations. With the threat of striking workers and government shutdowns, politicians rarely stand up to organized labor.
The Commonwealth Foundation found Pennsylvania alone has $50 billion in unfunded (http://www.commonwealthfoundation.org/issues/detail/pennsylvania-state-budget-trends-2015) pension liabilities. A significant percentage of school budgets (http://dailycaller.com/2015/07/01/chicago-fires-1400-teachers-to-fund-extravagant-pensions/) across the country often go to huge pension funds. Teachers unions, among some of the most powerful labor groups in the country, make sure pension reform is incredibly difficult.
Click here for the article. (http://dailycaller.com/2016/03/18/pensions-drive-global-debt-three-times-higher-than-previously-estimated/)



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[mick silver]

Bloated pension funds are a growing problem among many industrialized countries and may be driving global debt to three times previous estimates, according to a report Tuesday.
Pensions are a popular investment plan that require regular payments by both recipient and employer. Government pensions have a tendency to inflate beyond what is manageable. Citigroup argues in its new report “The Coming Pension Crisis” that debt is three times higher than thought among 20 leading industrialized nations because of pensions.
“We estimate global retirement underfunding (https://ir.citi.com/CqVpQhBifberuzZKpfhSN25DVSesdUwJwM61ZTqQKceXp0o%2F 0F4CbFnnAYI1rRjW) sitting on government balance sheets for these twenty countries to total $78 trillion, compared to reported national debts totaling $44 trillion,” the reported noted. “Total global government debt may be three times as large as people currently think it is.”
The report takes into account both pension liabilities and social security. It contributes the problem to several factors, including longer life expediencies and bad investments. Those retiring are becoming a much larger percentage of the population compared to working age adults.

In the U.S., public-sector pensions have proven to be a huge problem for state budgets. The Competitive Enterprise Institute (CEI) found Sept. 29 that unchecked union power (http://dailycaller.com/2016/03/18/pensions-drive-global-debt-three-times-higher-than-previously-estimated/A%20big%20problem%20in%20this%20regard%20is%20publ ic%20sector%20unions%20have%20a%20lot%20of%20power %20they%20can%20leverage.%20With%20the%20threat%20 of%20striking%20workers%20and%20government%20shutd owns,%20politicians%20rarely%20standup%20to%20them .) has prompted unsustainable member benefits, perhaps most notably rapidly expanding pension obligations. With the threat of striking workers and government shutdowns, politicians rarely stand up to organized labor.
The Commonwealth Foundation found Pennsylvania alone has $50 billion in unfunded (http://www.commonwealthfoundation.org/issues/detail/pennsylvania-state-budget-trends-2015) pension liabilities. A significant percentage of school budgets (http://dailycaller.com/2015/07/01/chicago-fires-1400-teachers-to-fund-extravagant-pensions/) across the country often go to huge pension funds. Teachers unions, among some of the most powerful labor groups in the country, make sure pension reform is incredibly difficult.
Some states have been able to get out of their pension debt through sweeping reforms. Wisconsin Republican Gov. Scott Walker was able to rein in pension debt through limiting union power (https://docs.legis.wisconsin.gov/2011/related/acts/10.pdf) in 2011 by signing Act 10 into law. His office estimated that the measure has since saved (http://dailycaller.com/2016/03/08/walker-discusses-the-labor-reform-that-defined-his-career/) state taxpayers over $5 billion.
New Jersey Gov. Chris Christie recently won a long legal battle with state unions over pensions. Christie cut state pensions in 2014 as part of a reform bill designed to address budget problems in the state. Unions claimed the cuts violated a contractual agreement the state had to fund retirement. The New Jersey Supreme Court ruled June 9 the pension cuts were legal (http://dailycaller.com/2015/06/09/chris-christie-wins-big-in-new-jersey-pension-battle/#ixzz3eBFZSbHP).



The Greek financial crisis can be partially blamed (http://dailycaller.com/2015/11/12/powerful-greek-unions-lead-disruptive-strike-over-bailout-terms/) on extreme pension debt. Growing unemployment, early retirement, horribly run welfare programs, declining labor standards, complacent and corrupt officials and powerful unions have all been blamed for the financial problems. The crisis has become so bad it has since impacted markets (http://dailycaller.com/2015/10/20/euro-official-greece-needs-to-do-more-to-get-e2-billion-bailout/) from across the globe.


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Tags: Act 10 (http://dailycaller.com/buzz/act-10/), Chris Christie (http://dailycaller.com/buzz/chris-christie/), Citigroup (http://dailycaller.com/buzz/citigroup/), Competitive Enterprise Institute (http://dailycaller.com/buzz/competitive-enterprise-institute/), Greece (http://dailycaller.com/buzz/greece/), New Jersey (http://dailycaller.com/buzz/new-jersey/), Scott Walker (http://dailycaller.com/buzz/scott-walker/), Wisconsin (http://dailycaller.com/buzz/wisconsin/)
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[cheka.]

the majority of states in the US do not have unionized teachers with big benefits/pensions/etc

the north+east bias (and liars that write stories) warp the conversation -- leading people to think that its a national issue. it's not.

texas is more typical than the hype in these stories

teachers contribute money from their checks into fund, state matches with a lesser contribution

once teacher gets 80 to 85 points (age plus years) she can retire and get about $2400/month (today's prices). she also has the option to pay FULL PRICE to join the health care plan.

don't fall for the lies that try to paint the US with the liberal state horseshit that goes on

[palani]

Is there supposed to be a problem with more debt? I thought debt and wealth were synonymous. The more debt society has the more wealth they have. Isn't that the result of the war on poverty? There shall be no poverty anywhere because debt is good!!!

Why is no one celebrating?

[Joshua01]

I'm not dependent on a pension, when they vaporize it's not my problem. Let'em burn