It Isn't Just Detroit; the Pension Tsunami Will Eventually Hit Job Creation

摘要

Not only do the unemployed and the underemployed pay less taxes and fail to pay for public services; but of necessity, they require more of those services. Companies are paying attention to more than just taxes when sizing up investment opportunities in states and regions across the country. This is why Detroit's bankruptcy crisis is not isolated to Motown. It serves as a wake-up call, reminding the rest of the country of the economic consequences of the rising pension debt that plagues municipalities, towns and cities across the nation. A mismanaged budget coupled with a tough economy has left Detroit unable to dig out from an $18 billion hole, with nearly four billion of that promised to public employees in retiree health and pension commitments.