The Second Estate, government, has de-linked itself somewhat naively from the Third Estate, the broader private sector public.
This is the situation we find ourselves in according to Mish. Public Pensions are becoming such a burden on the state and taxpayers and are so disproportionate with taxpayer retirement security that conflict is sure to erupt.
I’m not saying that trusting government employees are any less screwed than the rest of us. They depended on future promises that are contingent on general prosperity. The politicians squandered the money in the good years and over-promised to curry favor. What is new?