[quote=ucodegen]
The real problems when fully funding a pension, is the politician’s desire to grab money – including money that is earmarked to continue funding the pension – for other purposes and growth in pension obligations (we have all this money so why don’t we allow all gov employees to fully vest to 80% of salary after first year of employment). It has nothing to do with downturns and has plenty to do with human political nature. It comes down to willpower.[/quote]
Said another way, the weak link is human nature.
The psychology of most to “justify” decisions is gut feelings. Using basic “math” analysis is way down the list.
WRT the matter @ hand,… California public pension recipients and politicians blame the markets and wall street bankers to rally the faithful. The scapegoating strategy mostly works! By beating up on other institutions this keeps supporters (and the general public) from focusing too closely on fact that politicians and public employee union officials created the financial problem.
FYI the same week the “pension” op-ed was in the paper, another math related story was in the news.
[quote]
Scripps Study (There’s A Chance Climate Change Can Wipe Out Humans By 2050)
As I see things, the op-ed illustrates an entitlement mentality that politicians and public employee union officials have about pensions. The root cause being the DELUSION they have, which is the math will somehow work!
The lack of press interest about the Scripps study IMHO illustrates DENIAL of “basic” math. In other words the study shows that we as a species have damaged the environment.
Bottom line, we are heading toward tough times because too many are mathematically illiterate AND self serving.
