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Archive for August, 2010

The looming debacle of the emerging public pension crisis has even pricked the ears of the NY Times! I read an editorial today in the Providence Journal about the City of Providence firefighters. One firefighter took disability in 1991 with a salary of $34,000. With compounding COLAS of 4, and 5 and even 6 percent through the years, his pension today is $103,000. In 2015 it will be $138,000. In 2020, $185,000. These levels of pension largesse are obviously unsustainable. Of course, Providence’s pension fund is also 70% unfunded!!! Smart private sector citizens who refuse to be raped by the public pension system will obviously flee spendthrift locales. But the ultimate question is how did the pension system get so out of control? Simple answer: Unions. No one employed by any government, city, municipality or town should be allowed to unionize. They retire much earlier than you with benefits beyond your wildest imagination. I laugh when I hear teachers complain that we have to do it for the children. What they really mean is they want to do it TO the children. As we tumble over the cliff of Mt. Obama Doom remember to keep your powder dry. Once all these cities, towns even states start defaulting there will be hell to pay. Cheers!

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