The Triumph of Organized Labor and Government Experts
By Arnold Kling
An August report by the Kellogg Graduate School of Management at Northwestern University found government pension programs in as many as 31 states are headed for financial disaster by 2030 and that taxpayers will likely wind up paying for unfunded liabilities.
Robert J. Cristiano writes,
Orange County’s CEO, Thomas G. Mauk, predicted that pension requirements in 2014 will take 84% of the county’s law enforcement payroll. It is already 50% today.
The whole idea of making pensions a government function is to take the responsibility away from households and insurance companies and instead giving it to government. That way, instead of incompetent individuals making saving decisions, experts will make those decisions. As it turns out, the only way that the experts will be able to keep their promises is to confiscate wealth from those households who otherwise would have competently saved for their own retirement.
General Motors and Chrysler lost their economic viability because they could not support workers’ pensions. Now the same thing is happening to state and local government.
Have a nice (labor) day.