According to financial journalist Roger Lowenstein writing in the New York
Times, “The budgetary math is irrefutable: generous [public employee] pensions end up draining money from schools, social services and other programs.”
a. Is spending by state and local governments on public employee pensions counted in GDP? Briefly explain.
b. How do generous public employee pensions end up draining money from other programs?
c. Does the federal government face the same problem? Why or why not?