Commentary
Michigan's Cost of Trusting Pols to 'Do What's Right': $11.5 Billion
A
brief article in this week's Forbes
explores the mounting debt crisis facing state, local and national governments
worldwide; the title suggests one possible cause, "The Economic Incompetence of
The Political Class." One startling factoid: The city of Chicago's unfunded
pension liabilities are $25 billion, or $40,000 for every city
household.
For
comparison, the nominal unfunded liability figure for Michigan is around $50
billion, but this falls to just
$11.5 billion after deducting the "politician promise" of state
retiree health benefits that taxpayers are not legally obligated to pay.
Michigan has more than three times the population of Chicago.
The blame here and elsewhere ultimately falls on citizens who enabled
politicians to rack up the massive liabilities, and the piece aptly describes
the false assumption at the root of this and countless other government
dysfunctions:
In the U.S. at least, the looming debt crisis
among states and municipalities also reflects a lack of diligence on the part
of the citizenry. This can be attributed in part to a naïve assumption by
the electorate that those in government, freed from the profit motive, could be
trusted to do what was 'right' for the community as a whole.
(emphasis
added)
Michigan's Cost of Trusting Pols to 'Do What's Right': $11.5 Billion
A brief article in this week's Forbes explores the mounting debt crisis facing state, local and national governments worldwide; the title suggests one possible cause, "The Economic Incompetence of The Political Class." One startling factoid: The city of Chicago's unfunded pension liabilities are $25 billion, or $40,000 for every city household.
For comparison, the nominal unfunded liability figure for Michigan is around $50 billion, but this falls to just $11.5 billion after deducting the "politician promise" of state retiree health benefits that taxpayers are not legally obligated to pay. Michigan has more than three times the population of Chicago.
The blame here and elsewhere ultimately falls on citizens who enabled politicians to rack up the massive liabilities, and the piece aptly describes the false assumption at the root of this and countless other government dysfunctions:
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.