Free entry and exit

Forbes report on pensions criticize this research because it violates free entry and exit.   The report assumes governments are permanent.  They are not, witness Illinois where government is mostly exiting.  Our government undergoes generational restructuring, a form of entry and exit that involves default. Free entry and exit is a necessary sandbox condition enforced by a multi-currency format..

A new report by the Haas Institute at the University of California, Berkeley asserts that the public pension crisis is overblown, and that most pension funds would be fine following the practices that were embraced by certain CalPERS employers, New Jersey and Dallas. The report argues that public sector retirement systems are not really in danger — they are just victims of overzealous Government Accounting Standards Board rules related to reporting risk. The Haas report contends that it is wrong to treat permanent governments like private companies that may shut their doors because this creates avoidable financial pressures on government employers.