Something's got to give
Jan 26, 2009
Bishop Hill in Economics

Instapundit has been reporting regularly on the problems caused by over-generous state pension schemes. With the stock market tanking, these are now showing terrifying deficits, all of which are going to have to be filled by taxing workers in the private sector. The problem is that with no sign of improvement in anybody's economic fortunes anywhere on the horizon, there isn't going to be much that they can actually tax for years to come.

What is worse, this is all happening just as the baby boomers start retiring.

The situation is going to be the same here, and resolving it is going to be messy, if not bloody.

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