[quote=FlyerInHi][quote=CA renter]
The problem with the pensions is that govt entities tend to spend everything they take in, and then some, and many make commitments (not just to employees) that they can’t keep when things go bad. The boom/bust nature of our Fed-created economic system is the primary problem. We need to fix that first, then we can address any problems with the pension systems. For as long as we allow the Fed to manipulate the economy as we do, the inevitable result will be huge overhangs and promises of all types that are made during the good times that cannot possibly be kept when things normalize or turn down.
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What a bunch of crap.
It’s another way for you to say bailout the pension because it’s someone else’s fault… Blah blah.
We all depend equally on the existing financial system.
The way I see it is simple. Mom and dad promised to retire and pay for the kids college too. They invested in Wall Street. Either they or Wall Street mismanaged the money and now they are short for retirement and the kids college. It does not matter how the money was lost. It’s not there anymore.
Should grandpa, grandma and uncle bailout mom, dad and kids? I don’t think so. They can all get part-time jobs to meet their expenses.
But SK is right. Contacts are hard to renegotiate and people will go to court to defend their interests. Let the process unfold. But in the end, there will only be so much money to divvy up. Let’s see what happens in Detroit and see what solutions they come up with.
The worse thing we could do is to add new revenue sources to avoid the hard choices.[/quote]
No, what I’m saying is that we need to fix the system that creates these problems in the first place. And that means either reducing the volatility of the boom/bust cycles, or allowing governments to save more when there are surpluses instead of hearing all the whiners complain that they are “taxed too much” or that the govt should have to spend it all on everyone’s pet projects. I’m not talking about bailouts here.
You clearly have no idea how govt entities are operate, nor do you have any idea about the pressures put on politicians to **spend every single penny** that comes in, and more, even when it should be clear that the extra revenues are probably a short-term thing. Attend council meetings for a few months (at least) just to get a taste. As soon as there are surpluses, you get everyone and their grandmother standing in line with their hands out. And it is NOT employees that I’m talking about. EVERYBODY wants their piece of govt cheese. Some might want new sidewalks or other specific improvements in their neighborhoods (gotta keep their property prices up!), some libraries, some parks, some want expensive bluff stabilization to help protect their homes, some want new hotels and restaurants (and the developers want LOTS of taxpayer money), some want special transportation improvements/changes, some want new programs at their parks, schools, and libraries, etc. And everyone of these people wants the govt to spend on their special projects, even pushing the govt to go deep in debt for them, but nobody wants to pay for it.
Guess what? There is no infrastructure fairy. She doesn’t exist. And the nicer the infrastructure and public facilities, and the safer a community is, the more it will cost to build and maintain it. That’s just a fact. There are plenty of places that have low taxes, but you won’t have a school, library, or park nearby; and you’ll have one sheriff and a small volunteer fire department with no paramedics on staff that *might* respond to your call…maybe. You’ll have lots of dirt roads and few conveniences, but if low taxes are your goal, that’s what you’re going to get. Even Texas with their “no income tax” mantra charges about three times what California does for property taxes. The money has to come from somewhere, and if we want to live in a civilized society, we all have to pay for someone else’s cheese. We ALL have to do this.
