The Politics of Public Pensions - by Carolyn Abott

About the Book

"In this examination of labor unions and state employee pensions, political scientist Carolyn Abott examines the increasing tendency of state governments to act with fiscal abandon as they create policy, despite the relatively constrained nature of their fiscal resources. She finds that lawmakers are less concerned with the fiscal health of the state-and more willing to provide scarce resources to private interests through policy change-when interest groups and political parties are fractured than when well-organized groups cooperate with strong, centralized political parties. The book examines this dynamic through the lens of public sector labor unions and the process through which changes are made to public workers' pensions. The book asks, in an era of ever-increasing political polarization, how can governments govern effectively? Through four empirical studies of state public pensions under different party regimes, Abott finds that labor unions are distinct from other interest groups, that Democratic majorities and strong labor unions are more likely to balance state budgets, that state governments face sharp constraints the national government does not, and that eras of political reform (where parties were very weak) tend to lead to financial crisis and austerity. At the local level, partisan politics tend to be more muted as private interests compete over a fixed tax base. States have found themselves in a particularly unique situation, however: faced with both sharp resource constraints and a growing ideological and partisan rift in the electorate and in the government, they must increasingly contend with the prospect of highly circumscribed policymaking. Nonpartisan policymakers must balance interest group demands against fiscal sustainability and, at the state level, act like national partisans-making policy decisions with no regard for their financial viability-even as states begin to suffer the consequences that are typically characteristic of local governments.""--

Book Synopsis

This book is a nuanced and comprehensive account of the intricate politics surrounding public sector pensions, an issue that has become increasingly contentious in recent years. Drawing from an array of case studies and theoretical perspectives, it delves into how public sector pensions are negotiated, structured, and sustained, revealing the consequences for governance, labor relations, and public policy.

Carolyn Abott examines the historical development of public sector pensions, emphasizing the sociopolitical factors that have shaped their evolution and the ongoing debates about their sustainability. She uncovers the political and economic considerations that influence pension policy, highlighting the tensions among public employees, governments, and taxpayers. Abott also addresses the broader implications for economic inequality and intergenerational equity, offering a distinctive perspective on the intersection of public finance and political power.

The Politics of Public Pensions concludes with recommendations for reform that balance the needs of retirees with the fiscal realities faced by governments, providing a roadmap for a sustainable and equitable future. Combining qualitative and quantitative methods, this rigorous book delivers essential insights for policy makers, scholars, and anyone interested in public finance.

Review Quotes

It has become conventional wisdom that the Democratic Party is a wholly owned subsidiary of public sector unions. By examining how public pensions became so shockingly underfunded, Abott shows why this view is mistaken. The politics of pensions are much more complicated--and much more interesting. This book reveals why our intuitions about how state-level democracy works need an urgent update.--Vladimir Kogan, coauthor of Paradise Plundered: Fiscal Crisis and Governance Failures in San Diego

About the Author

Carolyn Abott is an assistant professor of political science at Baruch College, City University of New York.