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Public Pensions are Another Form of Theft

Matthew5 Wrote: Jul 21, 2012 6:03 PM
I agree but this was what we were told we were going to pay into and that is all I have when I am done. We have one of the best pension plans in the country right now but are being lumped in with all the states that screwed up.

There is a dirty secret about state entitlements that liberals don’t want you to know. The collection of a state pension increases the chances that a pensioner will live in poverty. That’s because money put aside for state-guaranteed benefits can not be safely invested at rates that provide for more than a modest retirement unless the state subsidizes retirement benefits through taxes or if retirement savings are invested in riskier, higher yielding investments. Since governments are loath to raise taxes to subsidize a riskless retirement, benefits are eventually reduced. It works that way in London and Moscow as well as Madison...

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