Nov
3
Should state pension funds speculate in commodities, driving up the cost of energy and food?
Filed Under Law & Ethics | 2 Comments
libertarian anarchist
A lot of state pension plans such as New Jersey and Californico are deeply underfunded because they have offered too much to too many people. For instance, in New Jersey, even part time workers are elligible for pension benefits. Now that they can no longer just raise taxes and float bonds, they are looking at other investments to make bigger returns.
A lot of state pension plans such as New Jersey and Californico are deeply underfunded because they have offered too much to too many people. For instance, in New Jersey, even part time workers are elligible for pension benefits. Now that they can no longer just raise taxes and float bonds, they are looking at other investments to make bigger returns.
In the last 6 months they have invested billions in the commodities market, and the price of crude oil has doubled. Yet the government will not investigate or regulate this market. Could it be that the powerful teacher’s unions are making sure they don’t?
Please don’t try to claim that an increase in investors speculating that the price of a commodity will not make the price go up. That is like saying that more oil supply will not make the price go down.