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Meanwhile, Illinois just passed state pension reforms limiting benefits, future increases etc. because they cannot afford to pay their pensions going forward. 20% of state tax revenue goes to pay those pensions right now. Wow.
This impacts a number of my relatives.
Again, politicians handing out big fat promises of future money that they do not have to recognize as an expense like a private company would.
Anyway, just an interesting parallel and the Detroit pensioners...I'm sorry but there just isn't any money. I'm assuming they've sued the management company that Kwame partnered with (bribery) to loot some of the funds.
San Diego and other Cities are right behind Detroit! In years when no one in private sector got raises the SD unions sweetened the pot of benefits being offered. One of them was the DROP plan. In years there was no money for raises there should not have been anything else being offered either. Especially benefits that were unfunded.
We can't even afford to maintain our streets now.
Yep. This is what lead to the voter revolt in Wisconsin. Bad economy, private sector not getting raises and having to pay more of their medical costs etc. Meanwhile their neighbors, family etc. working for the state govt were sqwaking anytime they were asked to give up a little too.
People are ticked off when they feel the pain and the people they pay via taxes are immune.
Meanwhile, Illinois just passed state pension reforms limiting benefits, future increases etc. because they cannot afford to pay their pensions going forward. 20% of state tax revenue goes to pay those pensions right now. Wow.
This impacts a number of my relatives.
Again, politicians handing out big fat promises of future money that they do not have to recognize as an expense like a private company would.
Anyway, just an interesting parallel and the Detroit pensioners...I'm sorry but there just isn't any money. I'm assuming they've sued the management company that Kwame partnered with (bribery) to loot some of the funds.
Governments all vote themselves raises. It's not just political promises.
They actually vote and few if any vote NOT to give themselves raises.
Go read your local school board meeting minutes.
Even with school budget cuts they always manage to "find money" to give themselves raises.
Yep. This is what lead to the voter revolt in Wisconsin. Bad economy, private sector not getting raises and having to pay more of their medical costs etc. Meanwhile their neighbors, family etc. working for the state govt were sqwaking anytime they were asked to give up a little too.
People are ticked off when they feel the pain and the people they pay via taxes are immune.
True. And if I recall correctly, Wisconsin is the only state in the country which has fully funded public pension and health care funds.
True. And if I recall correctly, Wisconsin is the only state in the country which has fully funded public pension funds.
I don't know about the state pension but Milwaukee's is because they had a past mayor with a backbone and some actual dignity that ran the city like a real business instead of kicking the can down the road. He made cuts when he had to instead of short funding the pension.
That means when Detroit city pensioners collect partial pensions, Milwaukee pensioners will get what they were promised.
That's the problem with unfunded liabilities, it's like buying a new car today @12% interest but the payments don't start for 20 years. It's practically free!!!! What a deal!!
Doesn't this narrative ever get old? The government lent money to financial institutions to prevent the entire financial system collapsing. And that would have affected every American in this country, and had broad worldwide ramifications. Not to mention the hundreds of thousands of people employed in financial services. And, the government made quite a nice profit from it.
What the government did bail out, in a purely political move, was the auto makers. And lost billions. But I suppose that doesn't fit your script.
The pension underfunding in detroit was not the sole collapse of the city. Its attributed to many things, pension underfunding being one. But a city like chicago....the city ex pensions is relatively healthy. But because of how poorly their pension fund has been managed, it could be the sole catalyst in causing Chi great harm.
Quote:
Originally Posted by pknopp
But the government is making sure that Wall Street keeps on rolling. This is the hypocrisy that many want to ignore. In the big picture the country would have been better off for the government to bail out the retiree's of Detroit than Wall Street but that isn't what happened.
The government made sure to look after Wall Street but we continue to ignore their actions here because politics won't allow many to condemn their actions.
And by all means, let us not indulge in the immorality of sweeping and largely false generalizations regarding public sector employees based upon ignorance. History has also shown that private sector corporations had to be bailed out by the taxpayers who by-and-large got no bang for their billions of bucks.
Justifying one immoral action by bringing up another one,good plan.
At the same time they are going into bankruptcy...a 235 million dollar subsidy for a new stadium is going forward.
Your entire post should be engraved into the tombstone for the city of Detroit.
Public financing for privately-owned businesses is the very definition of "fiscal ignorance".
Quote:
Originally Posted by pknopp
Working 20 years and then drawing a pension for 40 years is indeed not sustainable.
No, it definitely is not.
That's what got -- among other things -- GM into hot water. They were offering up pensions + health benefits to retirees that suddenly were living much, much longer lives at a time when technology was allowing the company to automate and shed jobs.
It's inevitable that a ponzi scheme like that will collapse. It's never a question of if, it's a question of when.
If you are referring to TARP, at least those companies paid the money back with interest.
No they did not.
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