How Governments Secretly Borrow from Employees

While talking with my Dad about his time in the Air Force, he mentioned that during the Vietnam War, wages for pilots were a fraction of what commercial pilots earned. He said the understanding was that the pay was low now, but you can retire early with a great pay in 25 years.

Friends who work for the city of Austin echo this sentiment as well - the pay for city employees is lower than the private sector, but the retirement is great - good monthly checks and subsidized health care.

What the government is actually doing is covertly borrowing money from its employees.

Promising hefty retirement benefits for low pay now is bad for because it masks the true cost of the government, so people don't know how terrible the public finances are.