Link: Arnold Schwarzenegger: Public Pensions and Our Fiscal Future – WSJ.com
Should be required reading. A keyword, however, which wasn’t highlighted enough in my opinion is *unfunded*. There’s nothing wrong with us giving generous benefits or pensions to employees — but they must be paid for at the time they are promised or earned. This is what has caused disasters in private pension and retiree benefit plans (remember GM) and this is causing an ongoing disaster in state budgets. When we can no longer afford to educate our kids, blame the folks who made promises many years ago without funding them.