July 15, 2014

IRA STOLL: The Latest Public-Sector Pension Scandal: The state-pension-industrial complex corrupts politics on multiple levels. “The current system takes rich money managers, who ordinarily might be a voice for lower taxes and restrained government spending, and makes them beholden, for business, on public pension boards that sometimes include union officials. Instead of arguing for less generous pensions, or for personal accounts that employees would manage individually, the money managers now have incentives to argue for more generous pensions and to avoid upsetting the system that is enriching them.” Then there’s the outright bribery.