Unfunded liabilities over long periods of time should be indexed for inflation: they shrink. this is why it's totally absurd to throw around the unfunded liabilities figures like they're meaningful. In 100 years, at 3% inflation, $1,026,647 will be worth $53,419 2010 dollars. Obviously those liabilities are paid out over time, so that's not a proper indexed figure, but it does give a point of reference.

You're mistaken. Unfunded liabilities are a net present value calculation that factors in a discount rate. They take inflation into account.