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Not Your Grandfather’s Bank Branch
What should financial services do? And how should they look like going forward as they try to serve more people? Some presenters are the recent…
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CEI Presents the 2020 Julian L. Simon Award to Dr. Steven Horwitz
On September 30, the Competitive Enterprise Institute presented its 2020 Julian L. Simon Memorial Award to Dr. Steven Horwitz, Director of the Institute for the…
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Negative Interest Rates’ Impact on Public Pensions
One of the main responsibilities of pension fund managers is to work to maximize investment returns in order to grow the plan’s assets and thus…
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How Accounting Reform Can Help Address Public Pension Underfunding
By deferring compensation, in the form of pensions, and pushing those costs well into the future, politicians can gain favor with government employee unions, which…
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Sealand, from Pirate Radio to Seasteading
Setting up a sovereign free territory has long been a dream of libertarian mavericks, from the ill-fated Republic of Minerva to the nascent Free Republic…
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Underfunded Public Pensions Put Future Taxpayers on the Hook
One of the most well-known and enduring lessons of public choice economics is the dynamic of concentrated benefits and diffuse costs. Well-organized groups have both…
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How Julian Simon Defeats Thanos
“The universe is finite, its resources finite. If life is left unchecked, life will cease to exist.” With those simple words, the Marvel supervillain Thanos…
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California Supreme Court Upholds Pension Reform, Punts on ‘California Rule’
On Monday, March 4, the California Supreme Court, in a unanimous decision, upheld a major provision in the state’s 2012 pension reform legislation, but punted…
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Pension Obligation Bonds No Panacea for State Budget Liabilities
Illinois has a new governor and Chicago will soon have a new mayor—and the same old underfunded public pensions. Inheriting a predecessor’s debts is never…
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Warren Buffett Warns about Unfunded Public Pension Liabilities—Again
Would you invest in a state with large unfunded pension liabilities? Warren Buffett likely wouldn’t. In a long interview with CNBC this week, the famed…
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Real-World Effects of Pension Debt
Debates over public pension finance often have an abstract quality, taking place outside most people’s immediate concerns. Yet, the real-world effects can be quite tangible.
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A Toast to the Sears Catalog
In retail, as in every industry, eras come and go. Few recent events mark the passing of an era like the announced bankruptcy of…
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Wishful Thinking Is No Way to Address Public Pension Shortfalls
More state revenue but less money for public services? That’s the situation in which states with large unfunded pension obligations can find themselves if they…
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Could Janus Ruling Open the Door to Pension Reform?
This week, the U.S. Supreme Court heard oral argument in case Janus v. AFSCME, which could significantly impact unions representing government employees. A ruling in…
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In Illinois, Public Pension Funding Cannot Keep up with Pension Benefits’ Growth
Public pension shortfalls result from too little money being paid into the pension funds. Or so government employee unions and their political allies would have…
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End of ‘California Rule’ Can Open Path for Pension Reform
Ending the 'California Rule' won’t mean that pension reform will become easy—union opposition will remain as fierce as today—but it’s a needed start.
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The Dangerous Posturing of New York’s Fossil Fuel Pension Divestment
New Yorkers should be wary of Mayor Bill de Blasio's decision to divest fossil fuel energy stocks from the city's public employee pension plan.
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Pension Bailout Bill Would Put Taxpayers on the Hook for Billions
Policymakers can help underfunded pension plans meet their payout obligations without bailouts.
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Pension Liabilities Bite in the Present, Too
Politicians should close underfunded public employee pension funds to new enrollees and offer new hires other options, such as defined contribution or hybrid plans.
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Missouri’s $5 Billion State Pension Underfunding Shows Results of Faulty Accounting
Government pension managers should calculate the state contribution using a more realistic rate-of-return estimate.
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Let Private Markets Finance Aircraft Sales
There is no good reason to keep the Export-Import Bank —or its international brethren—around.
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Center for American Progress’ Make-Work Scheme Needs Details
A debate over income inequality and job growth is worth having.
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The Community Reinvestment Act’s Absurd Unintended Consequences
Many neighborhoods designated as poor under the federal Community Reinvestment Act are among the wealthiest in the nation.
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Unfunded Public Pension Obligations Grow to $5.6 Trillion
State public pension plans are underfunded by nearly $5.6 trillion nationwide, according to a new American Legislative Exchange Council (ALEC) study.
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RIP Reed Larson
Don’t have to pay union dues? You can probably thank Reed Larson.
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For Affordable Housing, Ditch Prevailing Wage Laws
For residents of some of the nation’s major cities, it’s hardly news that housing costs are high, with little likelihood of their coming down any…
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Judge Halts Labor Department Persuader Rule for Now
A federal judge in Texas yesterday issued a preliminary injunction blocking the Department of Labor (DOL) from implementing its “persuader rule,”…
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Unions and Environmentalists Oppose Plan to Address California’s Rising Housing Costs
Everyone’s for affordable housing—except, it seems, some unions and environmentalists. On May 18, a coalition of unions and environmental advocacy groups—including the State Building &…
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Labor Department’s “Persuader Rule” Gives Unfair Advantage to Unions
The Department of Labor’s “persuader rule,” which is set to go into effect on Monday, April 25, will give unions a new tool to…
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California Court’s Indefensible Defense of Dysfunctional Education Policies
A California appeals court yesterday restored a series of education policies that harm students by making ineffective teachers extremely difficult to fire. The court…
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PBGC’s Perverse Incentives Undermine Multiemployer Pensions
For years, the Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures private sector defined benefit (DB) pension plans, has been severely underfunded below…
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Illinois Pension Reform that Can Pass State Supreme Court Muster
When you’re in a hole, stop digging. That seems like such a simple concept that it shouldn’t need stating, but in the area of public…
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Illinois’ Narrow Road to Pension Reform
On March 24, the Illinois Supreme Court struck down a Chicago pension reform bill that sought to address the city’s considerable pension shortfall. In…
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In Memoriam: Giancarlo Ibarguen
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West Virginia Set to Enact Major Labor Reform with Prevailing Wage Repeal
West Virginia, which appears poised to become the nation’s 26th right to work state, may soon enact another major labor law reform. The state Senate is…
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West Virginia: Prospect for a Right to Work Majority
West Virginia may soon become the nation’s 26th right to work state—making the number of right to work states a majority for the first time.
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Will SCOTUS Friedrichs Case Lead to Member-Only Unions?
Government employee unions have a lot at stake in Supreme Court case, Friedrichs v. California Teachers Association—especially access to millions of dollars in compulsory “agency…
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In Friedrichs v. CTA, Supreme Court Can Strike a Blow for Free Speech
Oral arguments in one of the most important Supreme Court labor cases in years are set for January 11, with potential major implications in the…
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NLRB’s BFI Decision Deserves Overturning
Who’s the boss? That’s not often a difficult question to answer. But thanks to the National Labor Relations Board (NLRB), it’s no longer so easy.
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NLRB Denies Petition to Form College Athlete Union, for Now
The National Labor Relations Board (NLRB) yesterday denied a petition by Northwestern University football players to form a union. While this is a rare…
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Theatrical Union Ignores Membership Vote to End Volunteering Exemption
If a vote goes against you, ignore it. That is what a theatrical union did this week, when it announced it would ditch a longstanding…
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The $7 Billion Slowdown
The ongoing logjam at ports on the West Coast could cost American retailers around $7 billion this year, according to the consultancy Kurt Salmon. That’s a…
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Democrats vs. Government Unions
If late House Speaker Tip O’Neill’s famous saying that all politics is local has a corollary, it may be that politics is at its most…
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“I’ll Gladly Pay Future Generations for my Pension Check Today”
“I’ll gladly pay you Tuesday for a hamburger today” was the trademark utterance of J. Wellington Wimpy, the mooching character from the old Popeye cartoons.
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CalPERS: It Came from Sacramento
“Heads I win; tails you lose.” That essentially sums up the relationship the California Public Employee Retirement System (CalPERS) has long enjoyed vis-à-vis the Golden…
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Moody’s $2 Trillion Public Pension Shortfall Estimate Highlights Need for Better Pension Accounting Practices
In a new report, Moody’s estimates the nation’s largest pension funds face a $2 trillion taken together. That’s a lot of money. But as significant…
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CalPERS Abandons “Hail Mary” Investment Strategy – About Time
CalPERS knows when to fold ‘em. The California Public Employee Retirement System, the nation’s largest public pension fund (and one of the world’s largest), announced…
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Harris v. Quinn Gives Home Care Workers Renewed Opportunity to Get Back Compulsory Dues
When you can’t win, change the players. That was essentially the strategy pursued by government employee unions in recent years. This week, it came to…
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Is Harris v. Quinn Decision Preview of Abood Challenge?
The U.S. Supreme Court’s decision in Harris v. Quinn puts a brake on an ongoing effort by organize labor to expand the definition of “public employee”…
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When Hedge Funds Meet Pension Funds
Are hedge funds dangerous? Depends on who you ask — and where you look. For most investors, they’re no riskier than other assets — just…
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Warren Buffett: “During the next decade, you will read a lot of news – bad news – about public pension plans.”
Thus warns Warren Buffett in his latest message to investors, part of Berkshire Hathaway's annual report. And when the Oracle of Omaha speaks, most of…
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Finally Free to Leave SEIU, Michigan Home Care Workers Do Exactly That
Michigan becoming the nation's 24th right to work state in 2012 appeared to pose a challenge to major industrial private sector unions like United Auto…
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The “California Rule” and the “The Fall of Pacific Grove”
In my previous post, I described the "California rule," which puts state governments in a legal straitjacket when trying to reform underfunded public pensions.
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How the “California Rule” Holds Back Pension Reform
These days, local governments announcing bankruptcy seems like routine in California. Since the onset of the 2008 financial crisis, many state and local governments have…
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To Enact Pension Reform, Make Good Policy Good Politics
In my previous post, I looked at some basic principles that should guide state policy makers when tackling pension reform. Now, we turn to the…
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Who Wants to See Their State Go Broke?
Few people would raise their hands when asked that question. But actually putting a state's financing on sound footing is difficult in practice. That makes…
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“The bill doesn’t come due until well after the legislators who wrote the check have left office”
Thus describes an Illinois state Senator the challenge states face in reforming their public employee pension systems. Given that reality, it's astounding reform would ever…
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Loss of Economic Freedom Takes a Toll on Small Businesses
The 2014 edition of the Heritage Foundation/Wall Street Journal Index of Economic Freedom is set for release next week, and for America, the news…
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With Declining Membership, Wisconsin Teachers Unions Consider Merger
The the corporate world, mergers are generally considered a sign of confidence, as companies seek to expand their operations. Within organized labor, by contrast, they're…
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Public Pensions Are Not Property
Across the nation, state and local governments in dire financial straits face great difficulty in their efforts to bring their budgets under control. Pensions are…
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Longshore Union’s Exit from AFL-CIO Illustrates Bad Feature of U.S. Labor Law
The largest longshoremen’s union in the West Coast has decided to leave the AFL-CIO. While this may be an internecine organized labor fight, it…
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New Estimate: Public Pensions Underfunded by $4.1 Trillion
One of the challenges in addressing the underfunding of public pensions is determining how big the funding gaps are. Estimates vary because of disagreement over…
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Playing Politics with Public Pensions
Many public pension plans around the nation are severely underfunded. The 2008 financial crisis, which wiped out many pension investments, has focused the public’s and…
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Lobbyists at the State Public Trough
Who is a public employee? The answer to that should be simple: Someone who works directly for a government entity. But in 20 states, the…
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Court Strikes Down another Obama NLRB appointment
If you cant' get legislation through Congress, then make policy through regulation. Until the courts get in the way. The former has been the Obama administration's…
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Detroit’s Pension Fight: Coming to a City Near You?
The bankruptcy of Detroit is an unusual event, but its uniqueness lies mainly in its severity. Municipal governments across the nation are struggling to bring…
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Labor Department Meddles in California Transit Dispute
California public transit unions seem to have found a new, powerful bargaining tactic: If you don’t get your way in the legislature, threaten your state’s…
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ALEC Puts Forth Ideas for State Pension Reform
Public awareness of the scope of the state public pension crisis seems to be growing every day. That's a welcome development, in that it has…
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Detroit Bankruptcy Focuses Attention on Public Pensions
For people watching it from afar, the bankruptcy of Detroit — the biggest municipal bankruptcy in American history — may have brought a sense of…
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Is the AFL-CIO Biting off More than it Can Chew?
Organized labor has long been a major force within the broader progressive coalition at the Democratic Party’s left wing. Unions regularly work with environmental and…
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Supreme Court to Hear Case on Union “Neutrality”
The Supreme Court’s decision to hear a challenge to President Obama’s “recess” appointments to the National Labor Relations Board, which he made while the…
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The Economist on “the muddle-headed world of American public pension accounting”
As state governments across the nation struggle to address a public pension underfunding crisis they can no longer deny, The Economist is the latest…
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The Costs Of Union Shareholder Activism
Is shareholder activism a good or a bad thing? That depends on what any given resolution seeks to improve the company's performance, and thereby increase…
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Separate Security Cameras and State
In his column today, The Wall Street Journal‘s Gordon Crovitz notes the significant help that video footage played in helping police identify the Boston…
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SEC Charges Illinois With Securities Fraud And Lets It Off With A Warning
This week, Illinois became only the second state in U.S. history to by charged with securities fraud by federal regulators (New Jersey was the first,…
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Federal Pay Freeze Was Really A Pay Slowdown
The Huffington Post’s Dave Jamieson argues that Rep. Paul Ryan’s proposed budget “ignores” a two-year pay freeze for federal employees. But Jamieson also ignores…
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Free Trade Si, Regulatory Harmonization No
Politics ruins everything, and in few areas is that truer than in international trade. Over the last two decades, the term "trade agreement" has become…
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Stirrings of Pension Reform in Montana
Pension obligations’ strains on state budgets have made pension reform a priority for state policy makers across the nation. Over the last couple of…
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CalPERS: Model Of Pension Dysfunction
Few state governments are as in as much fiscal trouble as California's, so it's not surprising that few state pension funds have been as mismanaged…
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A Peek Into The Statist Mind
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Former California SEIU Boss Convicted Of Embezzlement; What Did SEIU’s National Leadership Know?
While the January 28 conviction for embezzlement of Tyrone Freeman, the former president of the Service Employees International Union's (SEIU) largest local in California (and second largest…
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Will Courts Make Scofflaw NLRB Follow The Law?
The January 25 decision by the D. C. Circuit Court of Appeals in Noel Canning v. National Labor Relations Board, which declared that three…
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New Jersey State Senate Pushes Union Giveaway in Project Labor Agreement Bill
The extent and huge costs of the damage from Hurricane Sandy to New Jersey should make rebuilding the worst affected areas…
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Worthwhile Pension Reform Proposal in the Old Dominion
When trying to get out of a hole, the first thing to do is to stop digging. When the hole is a state pension deficit,…
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The Great California Government Union Swindle
Are government employees overpaid? A six-part Bloomberg report answers that question with a resounding "Yes." It also singles out one state as the biggest spender…
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Right-To-Work Laws Aren’t Perfect, But They’re Better Than The Likely Alternative
On more than one occasion, I’ve heard some libertarians object to right-to-work laws on the grounds that they undermine freedom of contract by barring employers…
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Hostess Bankruptcy Backstory: The AFL-CIO vs. SEIU Rivalry
The controversy over the impending shutdown of Hostess Brands — and who is to blame — has pitted two unions against each other. That…
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The Hostess Bankruptcy And The Threat Of A PBGC Bailout
On Friday, November 16, Hostess Brands announced it was shutting down operations after the Bakers, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), which rejected…
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Eleventh-Hour Twinkie Reprieve?
Today, representatives from Hostess Brands and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) undertake an 11th-hour effort to negotiate a…
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Binding Arbitration’s Threat To State And Local Governments
One reason Wisconsin Governor Scott Walker's labor reforms are considered far-reaching -- by both supporters and detractors -- is the fact that they were structural.
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California Unions Uber Alles?
In the media coverage of the presidential election, one state that is unlikely to get much attention is California, which appears to be solidly in…
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UNITE HERE President John Wilhelm To Step Down Following Turbulent Tenure
John Wilhelm, the long-time president of the union UNITE HERE, has just announced he plans to step down. Union leadership changes are not often…
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RIP Prince Roy of Sealand, Seasteading Pioneer
For as long as there have been states, there have been people seeking to escape state authority. Throughout most of history, such escape has meant…
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State Pension Bailout Threat
The state pension underfunding crisis has grown so severe that it has prompted most U.S. states to cut benefits, according to calculations by The…
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California Pension Reform Plan A Step In The Right Direction But Not Enough
California Governor Jerry Brown (D) yesterday announced a pension reform agreement, which if approved by the legislature, likely will help narrow the Golden State’s…
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New Moody’s Standards Give Clearer Picture Of Public Pension Crisis
The public pension funding crisis has led to a vigorous debate over how those pension liabilities are valued and how large they are. The debate…
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Struggle Over Union-Owned Bank Is A Sign Of Union Weakness
Shifting deposits to the union-owned Amalgamated Bank has become a leftist cause celebre, as several Democratic and progressive groups try to be seen as…
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The Great Hollywood Swindle
When is a market not a real market? When it trades in fake goods — products or services that could not exist if government didn’t…
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Maryland’s Public Pension Debacle Is Likely to Repeat Itself
The Maryland public employee pension system announced this week that it had achieved a dismal return rate on its investments of 0.36 percent — a…
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Pension Fund Activism Threatens Workers’ Retirement Security — And Taxpayers
While the underfunding of union pensions cannot be ascribed to any one cause, there is one that is troubling because it is so avoidable: pension…