US cities should take note: Political dysfunction and unfunded pension liabilities were two big factors leading to Detroit filing for bankruptcy, Gordon says.
In the week since Detroit became the largest U.S. city to declare bankruptcy, many commentators have speculated about what, if anything, this action means for the rest of the country. One narrative is that Detroit is sui generis – a city whose fiscal problems were long in the making, aided by broad macroeconomic forces and the city’s own political dysfunction. Indeed, Detroit’s previous mayor is in jail and several former officials, including a city treasurer, are under investigation for pay-to-play scandals at the city’s pension funds.
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It's quite simple, do not depend on your "pension" for your retirement. It may sound outlandish, but don't get caught flat-footed. This goes for both public and private sector workers.
ReplyDeleteNote that all were Democrats.
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