Your virtue signaling is writing cheques your pension can’t cash

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Isn’t it interesting that California lawmakers are trying to push through legislation that will ban its state pension funds already deep in crisis to virtue signal? Assembly Bill 946 from Assemblymen Phil Ting and Eduardo Garcia and Assemblywoman Lorena Gonzalez Fletcher would require the California Public Employee Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) to liquidate any investments in companies that helped build the US-Mexico wall. The latest Stanford University study reveals CalPERS unfunded liability is around $1 trillion. What we do know is that California collects around $138bn in tax revenue annually. While all that unfunded liability doesn’t need to be matched immediately it equates to over 7 years in dollar terms. One would expect companies that won contracts to build the wall would make sound investments (many cement stocks have reacted already) but for politicians it is better to put tokenism ahead of trying to build a reinforcement structure to stop the financial dam from bursting.

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