Colorado Teachers: Your Pensions Are Not Safe
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  • JDogg Snook

    Someone needs to explain to me how such a large number of people can still think pensions are “safe”. Is it some sort of ideological blindness? Is it ignorance? (on their part? on my part?)

    Whenever I talked to people this, I fail to convince them of four points:

    1. Private property (as guaranteed by the US Constitution) has much, much stronger protections than “promises”.
    2. If they think (those evil) 401k’s are “risky” because most money is invested in the stock market, then they would be shocked to learn how their pension money is invested (to say nothing of the fact that an individual can move his/her 401k money out of stocks overnight).
    3. For private pensions, you assume the additional risk if the company goes bankrupt.
    4. For public pensions, you assume the risk of inadequate contributions, municipal bankruptcies, etc.

    Now, maybe folks see pensions better than 401k because of who contributes the lion share of the money, I don’t know.

    • Dexter Scott

      They think their pensions are safe because they belong to a powerful union that has a long track record of successfully influencing politicians to extract resources from the taxpayers on their behalf.

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