Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
How the Government's Pension Math Hides Billions in Debt
In Episode 168 of The Fiscal Policy Podcast, Lucas and Luna dig into why public pension funds are so deep in the red — and why the official numbers don't tell the whole story. Using California's CalPERS as a case study, they break down the discount rate, the 'smoothing' trick, and why a 7 percent return assumption can quietly turn a $200 billion shortfall into $500 billion. They explore how state and local governments use optimistic assumptions to keep contributions low, and what happens when reality catches up. Along the way, they ask whether the system is broken beyond…
The skinny
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