WEDNESDAY, JULY 01, 2015
The Coming Era of Pension Poverty
Assuming “growth” will fund all promised pensions and entitlements is magical thinking.
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Promises made in flush times cannot be kept in lean times. Common sense suggests that public employee pension benefits should be tied to the revenues required to pay them and the rate of low-risk returns on pension funds. If common-sense is “union bashing,” then we not only have a pension-funding problem, we have a propaganda problem.
Regardless of what was promised, what can’t be paid won’t be paid. The federal government can print money, but state and local governments cannot print money to pay soaring pension and healthcare costs. Push taxes and junk fees up enough and you will spark a taxpayer rebellion. If you doubt this, check out the origins of Prop 13 limits on property taxes in California.
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Unfunded and underfunded liabilities about in the Zero Interest Rate Environment set up by the FED.
The estimates are staggering.
And yet the corruption continues. Politicians give Gooferment Unions big ‘benefits’ and Gooferment Unions give politicians big ‘campaign contributions’. And the taxpayer is on the hook.
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