By Arnold Kling
State pension funds are underfunded by over $3 trillion; this is more than six times the $438 billion in underfunding the plans themselves report. Pension shortfalls far exceed explicit state debts.
Current state pension accounting practices are inaccurate and outmoded. Private pension plans would not be allowed to use such methods.
Of course, no one will ever be sued by the SEC, prosecuted by the DOJ, or McCarthied by a Congressional committee for this. Or for the equivalent Federal fraud in making untenable promises for future Social Security and Medicare entitlements.
Because this fraud is perpetrated by people who were Elected, it is sanctioned by Divine Right. Anyway, it cannot possibly be fraud, because government is “us.”