Saturday, January 24, 2009

Mish on Pensions

Michael Shedlock has a 14 January 2009 post about pension problems facing the states. State pension funds lost a total of $865 billion in the last 14 months. Something has to give, link:


Printfaster said...

You know where I stand on average salaries of $130,000 for police, and $170,000 for fire, and $300,000 for fire captains and chiefs of modest size cities. It is an obscenity.

I remember the head of a small academic department of a state school refusing to hire a secretary to which he was entitled to because it was unfair to the wage earners of the state who paid the taxes. What public servant can even imagine such a thought emanating from their tiny, self centered brains?

Locally, a state representative got elected through the massive union financial support for election because she promised to keep the excessive salaries "private". What on earth is private about obscene salaries?

Locally, one city council voted itself lifelong medical benefits, quote "because they did not collect a meaningful salary" for their minimal part-time attendance.

The union/contribution/politician axis cannot be broken. It will take nothing less than catastrophe, and even then, if Africa is any archetype, they still may not reform.

Get ready for long serfdom at the hands of those in power who wield the tools of election.

Anonymous said...

Lotta hacks serving muniland...

Recession/depression will improve applicant pool.

Transparency coupled with contracting revenue might help...

Local junk needs local solutions.