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On 2026-05-03 @joshrauh argued the first step to stop public-debt spiraling is to…
Brief
Josh Rauh (2026-05-03) urges that to address rising public debt governments should stop creating new guaranteed pension obligations by shifting newly hired public workers to mandatory 401(k)-style plans or non‑guaranteed pooled funds like Australia’s; he notes California courts constrain changes to current pensions, suggests an optional switch for incumbents, and warns unions will resist as it reduces future taxpayer liabilities.
Why it matters
On 2026-05-03 @joshrauh argued the first step to stop public-debt spiraling is to stop adding guaranteed pension obligations by making newly hired public employees subject to mandatory 401(k)-style plans instead of defined-benefit pensions.
Key details
- He notes California courts have limited changes to existing pensions, so he recommends either mandatory DC plans for new hires or pooled investment funds that don’t guarantee benefit levels (citing Australia as a model), with an optional self-directed fund for existing employees — a move he says unions oppose because it would curb long-term taxpayer payouts.