Public Pensions A National Problem

To make up the shortfalls, governments are soon going to see pension contributions eating up an increasing share of their budgets and crowding out essential public services, just like what happens when governments have to pay down other debts. That crowd-out is already happening around the country. Look at cities like San Diego or San Jose, where pension contributions have had to rise to more than 20% of the city budget. Or bankrupt Detroit, where it is obvious that pensions have created enormous strain on the budget.