Public Pensions and the Loss of That Old-Time Fiscal Religion
By Daniel J. Smith, Rania Al-Bawwab
The defined-benefit model in public-pension plans has undermined a moral consensus for balanced budgets at the state and local level and contributed to substantial growth in unfunded pension liabilities. The loss of the old-time fiscal religion has increased the incentive for government actors to make unfunded promises of increased public-employee retirement benefits and weakened the incentive for taxpayers to monitor spending commitments.
|Other Independent Review articles by Daniel J. Smith|
|Winter 2017/18||The Man Who Knew:The Life and Times of Alan Greenspan|
|Spring 2017||Community Revival in the Wake of Disaster:Lessons in Local Entrepreneurship|
|Fall 2013||Response and Recovery after the Joplin Tornado:Lessons Applied and Lessons Learned|