Pension debt

For many years democratic controlled states have offered state employees better and better pensions. The result is that many of these states have pension debt that is draining their economies. These states have long assumed that the federal government would bail them out rather than have them go broke. This dream is coming to fruition with the $3 trillion stimulus proposed by the democrats in congress. One trillion of the stimulus is set aside for paying essential state workers and part of this could be used to pay off pension debt. When the banks became to big to fail the government stepped in to save them. This is referred to a moral hazard meaning the banks took undo risk knowing that the government would save them. The same idea was in the minds of those who allowed the pension debt to grow so large and they may be right.