A wonderful and clear analysis of the magical thinking that seems to always infect politicians whenever they are trying to decide how much in taxes and savings will be required to fund the promises that they have made. And, of course, employees are equally culpable - they demand (understandably) the highest benefits possible, without worrying about what the cost will be. This sort of problem runs throughout all of America. Congress has dealt with it to some extent for public companies by passing legislation requiring adequate funding for pension plans, but states and cities are esstentailly unregulated. And New Hampshire is just the tip of the iceberg. Kudos again toMary Walsh for a great piece of journalism.
Yeah, I was skeptical about paying for the blog but I have become a fan. First, big points for recommending Chip Wars, which is the silicon version of The Prize that great book about oil. Second, am enjoying Night Owls which for all the gravelly and frequently smug commentary, often really nails it. Third, almost every day I click into something in the afterthoughts section and find a gem. Fourth, maybe most important I have plenty of visibility into politics
but tech and medicine, not so much. I appreciate the heads ups you provide. So Kudos all around. The pension piece is not just smart but very nicely written and ends with a bang, not a whimper.
If by 'Akin to fraud' you are referring to defined benefit pensions, I'd agree with you; but I really hate the underfunded label. The funding each year is what the political leadership is able to pass as part of the budget, so that value is real and affected by real world considerations. The promised benefits well beyond what can be paid for by the appropriated funding is the fraud.
"The bill’s main sponsor, Rep. Mike Belcher, a Republican, said such a law was necessary because Gov. Sununu’s executive order was unenforceable. In an interview with “Business Insider,” he said ESG-led investment of state money was 'akin to fraud.'"
A wonderful and clear analysis of the magical thinking that seems to always infect politicians whenever they are trying to decide how much in taxes and savings will be required to fund the promises that they have made. And, of course, employees are equally culpable - they demand (understandably) the highest benefits possible, without worrying about what the cost will be. This sort of problem runs throughout all of America. Congress has dealt with it to some extent for public companies by passing legislation requiring adequate funding for pension plans, but states and cities are esstentailly unregulated. And New Hampshire is just the tip of the iceberg. Kudos again toMary Walsh for a great piece of journalism.
Yeah, I was skeptical about paying for the blog but I have become a fan. First, big points for recommending Chip Wars, which is the silicon version of The Prize that great book about oil. Second, am enjoying Night Owls which for all the gravelly and frequently smug commentary, often really nails it. Third, almost every day I click into something in the afterthoughts section and find a gem. Fourth, maybe most important I have plenty of visibility into politics
but tech and medicine, not so much. I appreciate the heads ups you provide. So Kudos all around. The pension piece is not just smart but very nicely written and ends with a bang, not a whimper.
This is really good. Thanks.
She does great work.
If by 'Akin to fraud' you are referring to defined benefit pensions, I'd agree with you; but I really hate the underfunded label. The funding each year is what the political leadership is able to pass as part of the budget, so that value is real and affected by real world considerations. The promised benefits well beyond what can be paid for by the appropriated funding is the fraud.
I recommend https://marypatcampbell.substack.com/ as another substack writer who has focused on pension systems for years.
The headline is taken from this:
"The bill’s main sponsor, Rep. Mike Belcher, a Republican, said such a law was necessary because Gov. Sununu’s executive order was unenforceable. In an interview with “Business Insider,” he said ESG-led investment of state money was 'akin to fraud.'"
Mary Pat Campbell's Substack is indeed terrific.