David Sirota: Don't demonize public pensions
Credit where credit is due: Conservative activists, business groups and politicians such as New Jersey Gov. Chris Christie have successfully sold the idea that public pensions are unsustainable.
In their mythology, greedy government workers are bankrupting states and pension-slashing politicians are saving the day. But there's a big problem with this: It is inaccurate.
States do confront a $757 billion pension funding gap. But this gap was created mostly by losses associated with the 2008 Wall Street collapse, not by unsustainable benefits.
Additionally, the shortfall is over 30 years, meaning it is comparatively tiny — just 3.8% of state and local spending, according to a study by Boston College. This has led McClatchy Newspapers to correctly conclude: "There's simply no evidence that state pensions are the current burden to public finances that their critics claim."
The budget problems of state and local governments have more to do with wasteful corporate subsidies than pensions. While states face an annual $25 billion pension shortfall over 30 years, they give away $120 billion a year in unjustifiable handouts. That includes the $80 billion that The New York Times reports that are given away in direct subsidies, and an additional $40 billion in corporate tax loopholes.
full: http://www.usatoday.com/story/opinion/2013/11/18/public-pensions-david-sirota-editorials-debates/3634033/
Believe it or not, "liberal" USA Today's editorial was, "Rein in reckless public pensions".
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