public pensions

The Public Pension Crisis is Our Undoing | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Mr. Armstrong; Thank you for explaining the difference between a public employee pension and those we have in the real world. The fact that the bulk of these people never contributed to a pension was shocking. How is this going to be resolved? GH ANSWER: It will not end well. Government employees have the defined-benefit (DB) while we get the defined-contribution (DC) plans. Most state and local government employees, actually 87% of those working full time, participate in a defined benefit (DB) pension plan. They contribute NOTHING but are guaranteed a pension on top of what they earned, plus free healthcare for life. The vast majority of those in government have NEVER had to save anything. They are there now demanding that our futures be stripped. We are to be taxed until we die, and upon death, they want what is left. This situation cannot end nicely. It is the same way that Rome collapsed. When the government could no longer afford to pay the army, it began sacking Roman cities that opposed their general. They turned inward and cannibalized their own cities, weakening the entire empire, thereby allowing the barbarians to come through the gates. We have followed the very same mistakes as Rome. This is just how empires always end. We are no different. How can someone working for the government negotiate their own pension? This entire system is flawed and we are paying the price of civil unrest.
— Read on www.armstrongeconomics.com/world-news/pension-crisis/the-public-pension-crisis-is-our-undoing/

I agree. Kick the can politics.

Outlaw Government Pensions? The Hunt for Endless Taxes | Armstrong Economics

Posted on by johnbarleycorn12

The commentary that has appeared in Forbes calls for the only solution is to outlaw pensions. This is actually what will happen. Because there is no resolution, the government pensions will demand to raise taxes and then there is never any reform in government so the end game is one major economic confrontation – the people v government. They really cannot grasp that the crisis is profound. For every person who retires, the government hires a replacement. The cost of government explodes exponentially. The system is doomed and this is what is going to rise up into civil unrest. Federal governments can create money but state/provincial and local government can only raise taxes. In Germany, the lessor governments are petitioning the federal government for a bailout since already 40% are effectively broke. It is this desperate letter we received from California trying to claim we must pay taxes simply because Amazon may store some reports or DVDs in their California warehouse. If you buy something from Amazon, they send it to you and collect whatever tax. They remit the tax and we do not mail the products nor receiver the taxes collected. We would have no idea what tax would be owed to California. Obviously, we have no choice but to inform Amazon to remove all our products from California. If everyone is compelled to do the same, then there go those jobs in their California warehouse. There is no rational reasoning with these people. They will simply destroy the economy because they are greedy and beyond hope. What will happen is drastic. Do companies not residing in California simply refuse to do business with anyone from California? Already we cannot send printed reports or books to Australia. Amazon refuses to deal with Australia because of taxes and our Australian clients can only get downloads. Eventually, Australia will impose internet taxes and that will only isolate Australia. This is all becoming insane.
— Read on www.armstrongeconomics.com/world-news/pension-crisis/outlaw-government-pensions-the-hunt-for-endless-taxes/

The too generous public pensions allow serving politicians to be seen as generous. When the generous pensions come due, the same politicians are retired and drawing pensions themselves. Once again, no accountability for elected officials. Many of the double dip, drawing pensions from multiple pension funds, all supported by taxpayers who only get SSI.