Working Paper

Pressures on Pensions

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Debate about the pension crises has centered on certain questions such as: Are greedy government workers bankrupting states? Are
pension-slashing politicians backed by big money saving the day? Or do the budget problems of state and local
governments have more to do with wasteful corporate subsidies than pensions? What are the real policy solutions to the pressures placed on pensions?”

I will address the first question, are greedy government workers bankrupting states? And I will quickly review the direction public policy needs to go in order to forestall a large drop of retirement income for American workers.